Stock prices on the US and European stock markets fell on Friday as markets continued to respond to signals from the US Federal Reserve System (FRS) that it was approaching tighter monetary policy.
Major European stock market indices fell between 1.5% and 1.9%, while the Wall Street Dow Jones Industrial Average fell 1.6% as a result of falling stock prices in energy and financial companies. The Dow Jones Industrial Average fell 3.4% during the week, the fastest one-week decline since October.
The FRS maintained a favorable monetary policy on Wednesday, but raised inflation and growth forecasts and made it clear that interest rates are now expected to rise in 2023 instead of 2024. James Ballard, president of the St. Louis branch of the FRS, predicted that the first rate hike could take place by the end of 2022.
The FRS also began discussions on changing the rate of bond redemption, which is currently $ 120 billion a month.
“The market seems to have been somewhat encouraged by the fact that the FRS both raised its inflation forecast for this year and stuck to its message that the rise in prices is only temporary,” said TD Ameritrade analyst J. Kinhan.
The US dollar continued to appreciate against other major currencies.
Oil prices rose and analysts pointed to an improving outlook for crude oil demand as the economy recovered from the Covid-19 pandemic.
The Dow Jones Industrial Average fell 1.6% to 33,290.08 points on Friday, the Standard & Poor’s 500 fell 1.3% to 4,166.45 points, and the Nasdaq Composite fell 0.9% to 14,030.38 points.
The London Stock Exchange index FTSE 100 fell by 1.9% to 7017.47 points on Friday, the Frankfurt stock exchange index DAX 30 fell by 1.8% to 15,448.04 points, while the Paris stock exchange index CAC 40 fell by 1.5% to 6569 , 16 points.
On the New York Stock Exchange, the price of WTI crude oil rose 0.9% to $ 71.64 a barrel on Friday. The price of Brent crude rose 0.6% to $ 73.51 a barrel on the London Stock Exchange.
The euro fell against the US dollar from 1.1907 to 1.1861 dollars per euro on Friday, the British pound against the US dollar fell from 1.3922 to 1.3794 dollars per pound, and the US dollar against the Japanese yen fell from 110.21 to 110.20 yen per dollar. The value of the euro against the British pound rose from 85.54 to 85.97 pence per euro.
–
