London, Wednesday, 6 April 2022
US Markets Summary
The Dow Jones Industrial Average closed the Wednesday session 100 points lower, while the S&P 500 and Nasdaq fell 1% and 1.7 percent, respectively, as the Federal Reserve provided additional guidance on how quickly monetary policy would be tightened.
Given a worsening inflation outlook, the FOMC minutes revealed that the central bank was considering raising rates by 50 basis points.
Officials also agreed that monthly balance sheet reduction limitations of around $95 billion would be reasonable, up from the $50 billion a month cut the Fed made in 2017-2019.
Losses were driven by technology and consumer discretionary stocks, while utilities, real estate, and consumer staples finished in the black.
European Markets Summary
On Wednesday, major European bourses ended the day in the red, with the pan-European STOXX 600 and the DAX 30 losing 1.6 percent and 1.9 percent, respectively, amid concerns over the economic impact of new sanctions against Russia.
Following overwhelming evidence of war crimes committed by its forces on the outskirts of Kyiv, Western nations may impose further economic measures on Moscow this week, including a US investment ban and an EU coal import restriction.
Furthermore, markets were on edge due to unexpectedly hawkish statements from numerous Fed policymakers, implying that the central bank is moving toward more aggressive tightening.
Factory orders in Germany fell far more than predicted in February, indicating that present supply limitations, high energy costs, and the Ukraine war are all weighing heavily on the German economy.
(Written and edited by: The Decision Maker)