© Reuters.
–
Investing.com – Most global equities fell as major exchanges experienced more violent volatility as central banks continued to intervene in an effort to curb inflation and rescue battered currencies.
While the Bank of Japan announced foreign exchange intervention to bail out the yen, the UK government sought to revive the UK economy after historic tax cuts.
Drops
Despite the unprecedented support granted by the People’s Bank of China to the yuan, the support did not stop the decline of the Chinese currency, which fell, dragging the Chinese stock market with it.
Chinese shares fell during trading on Monday, with the yuan sliding close to its lowest level since early 2008.
fall of the shares
On the other hand, it fell 1.20% to 3051 points and the Shenzhen Composite fell 0.75% to 1949 points, while the CSI 300 index fell 0.75% to 3836 points.
Coupled with the decline in stocks, the greenback rose 0.42% against its Chinese counterpart to 7.1584 yuan, taking the yuan to its lowest levels in nearly 15 years.
Central Chinese decision
Last week, the People’s Bank of China decided to make the highest hike in the benchmark rate of the yuan, which is the highest ever for the Chinese currency, as China has expanded its defense. of its currency by setting its reference rate for the yuan.
The People’s Bank of China set the increase at 6.9116 per dollar, 598 points higher than the average estimate in a Bloomberg survey of analysts and traders.
The fall of the London Stock Exchange (LON 🙂
UK stocks fell during trading on Monday, with the pound hitting a new record high after Liz Trust announced it would implement tax cuts and provide investment incentives to stimulate growth.
Last week, the Bank of England raised rates from 0.5% to 2.25% in an effort to reduce inflation which hit a 40-year high of 9.9%.
The British pound fell 1.35% against the US currency to $ 1.0712, after falling today to $ 1.0382, the lowest ever, approaching parity.
wholesale withdrawals
The broader composite index 600 fell 1.1%, or 4.5 points, to 386 points, and 35 fell 1.3%, or 95 points.
The British fell more than 1%, or 72 points, the Germans fell 0.6%, or 70 points, and the French fell 0.65%, or 40 points.
Historic fall
Coupled with a rally, it fell to its lowest point in over 20 years and its lowest ever, as it traded at levels of € 0.964 per dollar, below par, down 0.46%.
While the pound fell to its lowest level in more than 38 years, as low as 1.0648, down 1.8% during these trading times on Monday.
dollar explosion
And the major dollar index launched against a basket of currencies at 114.53 points earlier, while today it recorded its lowest level at 112.94 points.
New statements by the Federal Reserve chairman in Atlanta sparked a storm in the markets regarding the Fed’s continued hike in interest rates to curb inflation.
Statements by Rafael Bostik, president of the Federal Reserve Bank of Atlanta, concluded that the Fed believes the US economy will not fall into recession even as the pain increases and some people lose their jobs.
Bostick believes that the Fed will succeed in lowering interest rates and that the markets will absorb the higher interest rates until the target is reached.
–
