Global Stock Market Red Tide: Europe, the United States, and virtually all Asia have experienced a general brake on Thursday due to investors’ fears that rising interest rates by financial authorities could lead to a recession. did. On the same day the UK and Switzerland joined the rate hike movement, European stock exchanges (including Lisbon) lost about 3%, but in the United States, Wall Street’s major index was the largest since 1994. Corresponded to the rise in interest rates. It was led by some of the world’s leading technology companies.
In Lisbon, the PSI index fell 2.06%, with 12 of the 15 listed companies in the index recording a decline in market valuation. But it wasn’t the worst dip in Europe, and there were no positively noticeable squares. Frankfurt lost 3.31%, Milan 3.32%, London 3.14%, Paris 2.39% and Madrid took the shortest break. 1.18%.
Pan-European Index stoxx 600, including 600 SMEs from 17 countries, fell 2.31%. It was the 7th break in the last 8 days.
Central banks in Switzerland and the United Kingdom continue to raise rates today. In London, the Bank of England has raised rates for the fifth time since December. This time, banks warned that inflation could reach 11 and that “more effort” might need to be intervened in the near future, rising 0.25 percentage points to 1.25%. I did. % During October.
In Zurich, the Swiss National Bank surprised everyone with a rate hike for the first time in 15 years. The agency has opted for an increase of 0.50 percentage points. This keeps interest rates in the negative region (-0.25%), but gets interest rates from the minimum against general expectations.
In the money markets, the pound fell 0.3% against the dollar and 0.2% against the euro. Meanwhile, the Swiss franc is up 1.66% against the euro, approaching the same level.
These decisions were made the day after the Federal Reserve announced that it would raise interest rates by 0.75 percentage points (or 75 basis points), the largest rate hike since 1994. European Central Bank already a week ago Rate increased by 25 basis points In July.
Expectations for a global recession caused by “cooling” the economy leave a negative ballast on the stock market. Tokyo was the only place in Asia (and the world) that escaped the general decline of about 3%.
With inflation At the highest level in decadesThese energetic changes in interest rates Scared the market..Index only Nikkei Closed on positive ground (+ 0.4%). On the contrary, in China, both Hong Kong and Shanghai squares showed negative fluctuations.
In the United States, around 7 pm in mainland Portugal (minus 5 hours on the east coast of the United States), the S & P 500 fell 3.29%, approaching its lowest since December 2020. The number of companies listed on Wall Street has already declined by about 23%, and it is about to enter its worst quarter since 2008, when the world was hit by the global financial crisis.
Meanwhile, the Dow Jones Industrial Average fell 2.62%, while the Nasdaq Technology Index led the day’s losses, down 4.45%.
Companies such as Apple, Microsoft and Tesla are some of the companies that have recorded the most significant stock market declines, and investors are slowing down by removing stocks from companies whose sales may be sluggish. Shows that you are prepared for. World trade.