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Global Equities Pull Back as Inflation Hints at Fed Rate Hike | Health

Global Equities Pull Back as Inflation Hints at Fed Rate Hike |  Health

 


Tokyo’s Nikkei 225 index fell 1% to 28,489.13, while the Shanghai Composite fell 1.2% to 3,555.26. In Seoul, the Kospi lost 0.4% to 2,962.09.

The Hang Seng in Hong Kong rose 0.1% to 24,429.77 and the S & P / ASX 200 in Australia rose 0.5% to 7,474.40. The Indian Sensex index fell 0.1%.

Taiwan’s benchmark rose 0.3% after TSMC, the world’s largest processor of computer chips, reported a record quarterly profit of just over $ 6 billion.

The 10-year Treasury yield remained stable at 1.74%.

Besides the direct impact of large coronavirus outbreaks on normal business activity, the ripple effects on manufacturing and shipping could further hamper a rebound from the past two years of disruption.

So far, the market reaction to the omicron wave has been subdued, but attention should be paid to concerns about other impacts on global supply chains that could trigger risky trade, ”said Anderson Alves of ActivTtrades in a report.

On Wednesday, the S&P 500 rose 0.3%; the Dow Jones Industrial Average posted a gain of 0.1% and the Nasdaq composite rose 0.2%. The Russell 2000 Index fell 0.8%.

Investors focused on a report from the Ministry of Labor, which showed consumer prices jumped 7% last month. This is the fastest year-over-year pace of the Consumer Price Index in nearly four decades. The big hike, in line with economists’ forecasts, came a day after Fed Chairman Jerome Powell told Congress the central bank was ready to hike rates to fight inflation.

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