Share prices in the US and European stock exchanges fell on Tuesday, as concerns about the policy of the US Federal Reserve System (FRS) in raising interest rates were renewed.
Wall Street indexes fell throughout the trading session, while the yield on the 10-year Treasury note rose close to 4 percent. It was the latest sign that markets are anticipating further action by the US central bank to rein in inflation and slow economic growth.
The market was also disturbed by the pessimistic forecasts of supermarket chains “Walmart” and “Home Depot” for 2023. Both companies acknowledged the impact of inflation and high interest rates on consumer confidence.
Stock indexes in Paris and Frankfurt fell despite favorable data on German investor confidence.
The “Purchasing Managers’ Index” (PMI), which characterizes the activity of private sector production and services, in the Eurozone increased to 52.3 points in February this year, compared to 50.3 points in January, thus registering the highest level in the last nine months, according to the market research company “S&P Global ” latest data. The index is currently above the 50-point mark, indicating an upswing in activity.
PMI in the UK has risen to 53 points in February, compared to 48.5 points in January.
The Dow Jones Industrial Average fell 2.1% to 33,129.59 on Tuesday, the Standard & Poor’s 500 fell 2.0% to 3,997.34, and the Nasdaq Composite fell 2.5% to 11,492.30 points.
London’s FTSE 100 fell 0.5% to 7,977.75 on Tuesday, Frankfurt’s DAX 30 fell 0.5% to 15,397.62 and Paris’ CAC 40 fell 0.4% to 7,308. .65 points.
WTI crude oil fell 0.2% to $76.16 a barrel in electronic trading on the New York Stock Exchange on Tuesday. The price of “Brent” crude oil on the London exchange decreased by 1.2% to 83.05 dollars per barrel.
On the Dutch exchange “Title Transfer Facility” (TTF) natural gas price fell by 2.67% to 48.54 euros per megawatt hour on Tuesday.
The euro fell from $1.0686 to $1.0659 per euro on Tuesday, the British pound rose from $1.2041 to $1.2106 per pound, and the dollar against the Japanese yen rose from 134.25 to 134.98 yen to the dollar. The euro fell against the British pound from 88.74 to 87.95 pence per euro.
