London, Friday, 1 October 2021 -
Global Markets Weekly roundup
U.S.
Dow Jones
Friday’s Close: 34,326.46
Week’s Change: -471.54
% Change YTD: 12.15%
S&P 500
Friday’s Close: 4,357.04
Week’s Change: -98.44
% Change YTD: 16.00%
Nasdaq Composite
Friday’s Close: 14,566.70
Week’s Change: -481.00
% Change YTD: 13.02%
Stocks retreat on inflation and interest rate fears
The rally on Friday, 1 October, resulted to modest losses. Large-cap benchmarks though and Nasdaq Composite Index saw their biggest decline since February and highlighted the worst monthly decline since the outbreak of the pandemic. Performance was affected by inflation and interest rates fears.
Europe
Germany - DAX: -2.42%
France - CAC: -1.82%
Italy - FTSE MIB: -1.36%
UK – FTSE 500: gave up 1.36%
Core Eurozone bond yields rose amid a sell-off in global developed market bonds and as hawkish Federal Reserve comments raised expectations of imminent U.S. monetary policy tightening.
German inflation reached 4.1% - 29-year high creating and upward trend in core bond yields
Core markets significantly affected by peripheral and UK government bonds
Eurozone inflation strong at 1.9% up from 1.6% – Lagarde (ECB) says it’s temporary
United Kingdom
Bank of England (BoE) Governor Andrew Bailey notes that UK GDP will eventually start showing signs of recovery to the pre-pandemic levels, early next year.
Germany
Social Democratic Party (SPD), led by Olaf Scholz, won the German general election by only a small margin.
The SPD and the centre-right alliance of the Christian Democratic Union and Christian Social Union (CDU/CSU), to compete for the support of the Green Party and liberal Free Democrats to form a majority coalition government
Angela Merkel will stay on as a caretaker chancellor.
Japan
Nikkei: -4.89%
TOPIX Index: -5%
JPY/USD: 111.20
10-year government bond yield: nearly unchanged at 0.055%
Japanese stocks follow the declining pattern of the U.S. stocks for the week
China
CSI 300 Index slightly higher, Shanghai Composite Index declined since last Friday’s close.
Government bond yield: generally unchanged
RMB/USD: 6.447, up 0.3%
The weak ahead, 4-8 October
Monday
Factory orders, U.S. Census Bureau
Tuesday
Institute for Supply Management’s nonmanufacturing index
Trade Balance, U.S. Census Bureau
Wednesday
ADP National Employment Report
Thursday
Weekly Unemployment Claims, U.S. Department of Labour
Consumer Credit, U.S. FED
Friday
Jobs and unemployment, U.S. Bureau of Labour Statistics
Wholesale Inventories, U.S. Census Bureau
(Written and edited by: The Decision Maker)