LONDON, Oct 3 (Reuters) – The last quarter of the year got off to a shaky start Monday as world stocks remained at their lowest levels since the end of 2020, when the global economy was still reeling from the COVID-19 pandemic.
Oil prices rose more than 4% after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, said they would consider cutting production. British markets.
However, sentiment in the markets remained weak given the concerns that the aggressive rate hikes by the US Federal Reserve’s peers are increasing the risks of the global recession.
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European stock markets were a sea of red, with the STOXX 600 index falling 1.4%. (.STOXX). Shares of the besieged Swiss bank Credit Suisse (CSGN.S) down about 10% in early tradesreflects market concern for the group as it completes its restructuring program, which will be announced in October. 27.
Asian stocks mostly fell in trade weakened by the holidays, as Japanese markets found support in strong energy and semiconductor stocks. (.N225).
U.S. stock futures were mixed and MSCI’s world stock index (.MIWD000000PUS) It fell to its lowest level since the end of 2020.
Even the news of the British government’s tax U-turn didn’t stir up broader sentiment.
Stephen Innes, managing partner of SPI Asset Management, said the meltdown in the UK markets last week after September in the UK. The 23 “mini-budget” bear market had entered a new phase in the proposed stocks.
“Market vulnerability heading into Q4 means it’s time to be comfortable with being uncomfortable,” he said.
“For over a decade it has always been difficult to recover from injections of cheap money and liquidity. But the Fed did not flinch when the stock markets were slipping, quite the contrary.”
MSCI’s 47-country world stock market index rose 10% between July and mid-August. But aggressive Fed rate hikes soon returned, and this index has dropped 15% sinceThis year it has left behind 25% and $18 trillion so far.
Central banks in Australia and New Zealand are meeting this week and are expected to introduce further rate hikes.
Oil prices rose on reports that OPEC+ will consider cutting production by more than 1 million barrels per day this week for its biggest drop since the pandemic to support the market. Brent crude futures rose more than 4% to about $89 per barrel, and US West Texas Intermediate crude rose 4.5% to $83 per barrel.
ENGLAND RESPITE
Britain’s battered sterling rose nearly 0.5% to $1,1200 and government bond yields fell, pushing their prices higher after the UK policy reversal.
“From a market perspective, this is a good step in the right direction. It will take time for the markets to get the message, but it should ease the pressure,” said Jan Von Gerich, principal analyst at Nordea. “Questions remain and sterling will likely remain under pressure.”
London’s FTSE-100 stock index fell 1 percent (.FTSE)falls in line with other markets.
Meanwhile, Japan’s finance minister, Shunichi Suzuki, briefly dropped as much as 145.4 to the dollar, even though the government said it would. “decisive steps” To avoid sharp currency movements.
The yen crossed the 145 barrier for the first time since September. On December 22, when Japan intervened to support its currency for the first time since 1998.
Trade across Asia was generally suppressed. South Korea has a national holiday and China has a “Golden Week” holiday on Monday. Hong Kong is closed on Tuesday for a public holiday.
Gold rose just 0.3% to $1,664 an ounce.
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Reporting by Dhara Ranasinghe, additional reporting by Sam Byford at TOKYO; Edited by Hugh Lawson
Our standards: Thomson Reuters Trust Principles.
