European Stocks Lose More Than 1%, US Extended Loses Amid Rising Commodity Price And High Inflation
Wednesday, 6 October 2021 –
European markets declined despite the upward trend of 0.3% in retail sales in the Eurozone and the EU in August.
STOXX Europe 600: -1.03% closing at 451.33 points
FTSE 100: -1.15% closing at 6,995 points
DAX 30: -1.46% closing at 14,973 points
CAC 40: -1.26% closing at 6,493
FTSE MIB: -1.35% closing at 25,605 points
IBEX 35: -1.71% closing at 8,775 points
US extends losses
Investors’ worries about high inflation and rising commodity prices, send VIX volatility index at 7%, while the International Monetary Fund (IMF) noted that higher inflation will probably further continue in the coming months. Nevertheless, the IMF estimated that inflation will return to pre-pandemic levels by mid-2022.
Major indices in the US extended losses after a weak opening.
Dow Jones: -0.7%
S&P 500: -0.57%
Oil prices reversed course from three-year highs with a 1.7% loss. Brent crude was trading at $81.13 per barrel and US benchmark West Texas Intermediate was at $77.56.
Bitcoin at $55,000, its highest level in approximately five months.
While the dollar index was up 0.34% to 94.30, the yield on 10-year US Treasury notes was down 1.25% to 1.512%.
Precious metals were mixed with gold adding 0.1% to $1,762 per ounce but silver trimming 0.5% to $22.52
(Written and edited by: The Decision Maker)