London, Tuesday, 12 October 2021
Quarterly earnings to be announced and inflation update maintained investors’ concerns, sending all major indexes down.
S&P 500: -0.2%
Dow Jones: -0.34%
Nasdaq: -0.14%
Banking stocks have gained about 40% in the year so far as the emergent rising rates continue to favour the sector. JPMorgan Chase & Co Q3 results are expected Wednesday, while Wells Fargo, Bank of America, Citigroup and Morgan Stanley will follow on Thursday.
Big Tech traded generally lower, despite Treasury yields, which affect growth stocks, fell.
Google-parent Alphabent, Facebook and Apple ended lower, while Amazon, higher.
Apple, in the meantime, noted that it plans to launch the new MacBook laptops and AirPods headphones, on 18 October.
The 10-year Treasury yield ended below 1.6%.
Ahead of the inflation report due Wednesday, Atlanta Federal Reserve President, Raphael Bostic stated on Tuesday: “Underlining inflation is indeed above the committees 2% objective - severe and pervasive supply chain issues will probably last longer than initially expected”
Fear of stagflation intensifies among investors due to concerns about persistent inflation, while global growth is expected to slow.
The International Monetary Fund (IMF) revised its global economic growth projection to 5.9% for 2021, down by 0.1 percentage point, according to a report issued on Tuesday.
Forecast for 2022 was kept stable at 4.9% compared to the previous update released in July, the IMF said in its World Economic Outlook.
Meanwhile, Asian markets ended lower and EU stocks fell
Inflationary concerns and global semiconductor shortage are the main drivers for the red arrows in Asia and Europe.
Asia Dow: -0.86%
Nikkei 225: -0.94%
Hang Seng: -1.43%
Shanghai: -1.25%
Singapore: -2.8%
Only Sensex in India managed to stay in positive territories with an increase of 0.19%
In Europe, all major indices were down.
STOXX Europe 600: -0.1%
FTSE 100: -0.6%
DAX: -0.46%
CAC: -0.54%
FTSE MIB: -0.3%
IBEX: 0.15%
(Written and edited by: The Decision Maker)