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The day started calmly on the American stock exchanges, where the leading indices fell cautiously in the opening minutes. But at the end of the trade, the mood soured:
- The Dow Jones industrial average fell 0.85 percent.
- The broad aggregate index S&P 500 experienced a decline of 1.1 percent.
- The Nasdaq Technology Index fell 0.74 percent.
There is great tension in the stock markets with the inflation figures from the USA, which will be published on Friday.
– We believe inflation in the US has reached its peak and will fall in the future. The question is how fast it will fall, said head of allocation and global interest rates Olav Chen in Storebrand in an interview with DN Monday.
Inflation in western countries has risen sharply over the past year, due to problems in global supply chains, high aggregate demand and geopolitical unrest.
In advance, it is expected that the annual growth in the consumer price index (CPI) will fall to 8.2 percent for May, according to figures from Bloomberg. At the same time, core inflation, which is total inflation adjusted for energy and food prices, is expected to fall to 5.9 per cent in May.
The soaring inflation has meant that the central banks in western countries have signaled a sharp monetary tightening, with several double interest rate hikes in a row ahead. At the same time, the outlook for global growth has fallen since the war in Ukraine.
The combination of lower growth, high inflation and rising interest rates has contributed to increased fears of recession among investors, which has sent the technology-heavy Nasdaq index down almost 30 per cent so far this year. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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