November 5, 2021

World Stocks Mixed After Weak Bank Income, Oil Returns Profitable

 World equity markets became volatile after hitting a new record on Thursday and mixed as a result of the Federal Reserve’s (Fed) decision to cut its monthly bond -buying program at the FOMC meeting.

The MSCI worldwide index recorded the highest closing for four consecutive times.

U.S. treasury yields fell and the yield curve rose while oil prices fell, reducing gains again in a less volatile session.

Brent oil price fell $ 1.19 at $ 80.8 a barrel followed by US crude oil price fell $ 1.64 at $ 79.22 a barrel.

The pan-European STOXX 600 index rose 0.41% and the worldwide MSCI stock gauge rose 0.17%.

Wall Street market watchers said an encouraging third-quarter earnings season was achieved as a result of comments on future growth from Corporate America that helped investors in U.S. equities deck part of them dismissing concerns about rising prices, supply chain problems and a mixed macro-economic picture.

The S&P 500 was up 0.42% and the Nasdaq Composite was up 0.81% while the Dow Jones Industrial Avarage was down 0.09% as it was dragged down by shares of bank JP Morgen Chase & co and Goldman Sachs Group.

Japan’s Nikkei rose 0.9%, hitting a record high while the MSCI index for Asia-Pacific stocks outside Japan rose 0.4%.

The Fed’s announcement came in line with forecasts when announcing a $ 15 billion reduction in its monthly bond purchases starting this month would open up options to speed up or slow rates as needed but they were unsure if inflationary power would prove enough to reach long -term bonds and withstand steep yield curves.

The Fed envisions a 0.25% rate hike by June with another at 0.5% by the end of 2022.

The US Dollar showed a strengthening in trading on Thursday after a decline that occurred on Wednesday as speculators chose a long position following five months of steady gains.

The dollar index, which measures the strength of the US dollar, rose 0.486% at 94.32.

The euro fell 0.47% to $ 1.1556 after a dovish statement by the president of the European central bank following a policy tightening move by the Fed.

Gold prices for December rose 1.7% to $ 1,793.50 an ounce.

Bitcoin traded down 1.97% at $ 61,529.93.