US Stocks Ended Lower To Fed’s Rate Hike Intensions, Europe Finished With Strong Gains.
London, Wednesday, 26 January 2022 -
US Markets summary
On Wednesday, US markets pared gains after Powell said there is plenty of room to raise interest rates without damaging the economy.
The Fed said earlier this week that it may raise interest rates for the first time in more than three years and that it will continue to remove its ultra-easy economic support, as predicted.
The Dow Jones fell as much as 130 points after gaining more than 400 points earlier, the S&P 500 fell 0.2 percent, while the Nasdaq Composite remained unchanged after reaching session highs of more than 3.3 percent.
On the corporate front, rising yields helped bank equities, with Morgan Stanley and JP Morgan both up around 1%. Microsoft, on the other hand, surged 2.3 percent as the company's earnings, revenue, and sales forecasts above expectations.
AT&T and Abbott both posted better-than-expected results, but stocks did not jump, and Boeing shares fell more than 5% after the company disclosed a considerably larger-than-expected loss of $7.69 per share in the fourth quarter.
European Markets summary
On Wednesday, European stocks rose the most in seven weeks, with Frankfurt's DAX 30 up 2.2 percent to 15,459 and other major bourses up 1.4 percent to 2.5 percent, led by travel and mining stocks. Investors awaited the outcome of the Federal Reserve's monetary policy meeting, which is set to take place today.
US officials are expected to signal an interest rate hike as early as March, followed by three more quarter-point increases by year's end, despite rising inflation and a strong economic recovery.
On the corporate front, Tod's 2021 sales exceeded market estimates, and debt recovery specialist doValue announced it would strive to retain the number of loans it manages at €160 billion until the end of 2024.
BioNTech stock rose when the business and Pfizer announced that they had begun a clinical trial to evaluate a new version of its COVID-19 Omicron variant vaccine.
Meanwhile, Essity, a manufacturer of hygiene products, reported a lower-than-expected quarterly profit.
U.S. Stock Market Indexes
S&P 500: −6.52 (0.15%) at 4,349.93 as at Jan 26, 4:11 PM EST
Nasdaq: +2.82 (0.021%) at 13,542.12 as at Jan 26, 4:13 PM EST
Dow Jones: −129.64 (0.38%) at 34,168.09 as at Jan 26, 4:13 PM EST
European Stock Market Indexes
STOXX Europe 600: +7.83 (1.70%) at 467.42 as at Jan 26, 5:30 PM GMT+1
FTSE 100 in London: +98.32 (1.33%) at 7,469.78 as at Jan 26, 4:35 PM GMT
DAX 30 in Germany: +335.52 (2.22%) at 15,459.39 as at Jan 26, 5:55 PM GMT+1
CAC 40 in France: +144.00 (2.11%) at 6,981.96 as at Jan 26, 6:05 PM GMT+1
FTSE MIB 30 in Italy: +590.36 (2.27%) at 26,619.25 as at Jan 26, 5:35 PM GMT+1
IBEX 35 in Spain: +140.70 (1.66%) at 8,620.20 as at Jan 26, 5:38 PM GMT+1
Ten-year U.S. Treasury note: + 0.094 or + 1.87% as at Jan 26, 2022 at 4:23 p.m. EST
Dollar index: +0.57 0.59% at 96.52 as at Jan 26, 2022 at 4:12 p.m. EST
VIX volatility index: +0.010 (0.032%) at 31.17 as at Jan 26, 3:06 PM CST
Brent crude: -0.24 or -0.27% at $ 88.48 per barrel
West Texas Intermediate: 1.51 or 1.76% at $ 87.11 per barrel
Gold: -32.58 or -1.76% at $ 1,817.05 an ounce
Silver: -0.43 or -1.80% at $ 23.45 an ounce
Bitcoin: −74.40 (0.20%) at 36,898.10 as at Jan 26, 9:30 PM UTC
Ethereum: +34.37 (1.40%) at 2,494.40 as at Jan 26, 9:29 PM UTC
(Written and edited by: The Decision Maker)