Stock prices on the US and European stock markets fell on Wednesday after the publication of the transcript of the July meeting of the US Federal Reserve System (FRS), which indicates the FRS’s intention to reduce stimulus measures by the end of the year.
The transcript of the FRS meeting shows that there is a broad consensus among FRS policy makers on the issue of reducing bond purchases in the coming months.
While this was not surprising given recent statements by FRS officials, stock prices fell sharply in the last hour of the trading session.
“As the summer draws to a close, market sentiment is likely to continue to be affected by factors such as concerns over the Covid-19 delta option and Afghanistan, as well as an expected announcement of a timetable for reducing FRS bond buy-outs,” said Sam Stowol, an analyst at CFRA Research.
Wall Street indices fell for the second day in a row. The London and Paris stock exchange indices declined, while the Frankfurt stock exchange index rose.
“The source of the uncertainty is almost entirely the spread of Covid-19 and the virus-related restrictions that have had a negative impact on the global economic recovery,” said Favad Razakzada, an analyst at ThinkMarkets.
Oil prices fell for the fifth consecutive trading session, fueled by rising US gasoline reserves.
The Dow Jones Industrial Average fell 1.1% to 34,960.69 points on Wednesday, the Standard & Poor’s 500 fell 1.1% to 4400.27 points, and the Nasdaq Composite fell 0.9% to 14,525.91 points.
The London Stock Exchange index FTSE 100 fell by 0.2% to 7169.32 points on Wednesday, the Frankfurt stock exchange index DAX 30 increased by 0.3% to 15,965.97 points, while the Paris stock exchange index CAC 40 fell by 0.7% to 6770 , 11 points.
In the e-commerce of the New York Stock Exchange, the price of WTI crude oil fell by 1.7% on Wednesday to USD 65.46 per barrel. The price of Brent crude fell 1.2% to $ 69.23 a barrel on the London Stock Exchange.
The euro rose against the US dollar from 1.1710 to 1.1712 dollars per euro on Wednesday, the British pound against the US dollar rose from 1.3741 to 1.3753 dollars per pound, and the US dollar against the Japanese yen rose from 109.60 to 109.77 yen per dollar. The euro fell against the British pound from 85.21 to 85.14 pence per euro.
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