For 2 days in a row, the equity market experienced losses despite a small rebound on Wall Street despite expectations that the Federal Reserve (Fed) will remain aggressive in curbing inflation.
As the closing session of the United States (US) stock market Dow Jones Industrial rose 0.1%, at 31,135.09, the S&P 500 reached 0.34%, at 3,946.01 and the Nasdaq Composite added 0.74%, at 11,719.68.
For now, the FedWatch Tool indicates that the Fed's interest rate increase of 75 basis points is almost certain, with the possibility of a 100 basis point increase based on August's still high inflation data.
The streak saw MSCI's index of worldwide shares slip 0.33%, the biggest 2-day percentage decline in 3 months, while the pan-European STOXX 600 gauge fell 0.86%.
Commenting on the situation, analyst Brian Jacobsen from Allspring Global Investments said yesterday's producer price index (PPI) data, which was seen to decline for 2 consecutive months, did not have a major impact on the market.
This is because the Fed insists more on consumer prices than production in making any decision to raise interest rates.
Meanwhile, the Asian region also showed a rebound with Japan's Nikkei 225 and Topix opening slightly higher while South Korea's Kospi added 0.29% and Australia's S&P/ASX 200 started trading well.
The currency summary saw the dollar slip 0.155% while the Euro gained 0.07% at $0.9977 while the Japanese Yen firmed 0.95% at 143.19 per dollar and the Pound jumped 0.39% at $1.1536.
As for Treasury yields, the 10-year and 2-year notes firmed during the trading session before falling along with the dollar to give equities a chance to make some gains.
