Nova Scotia Journal

Wednesday, December 1, 2021

Asian Stock market in green, Impact of growing demand and lower inflation

impact of inflation decreases

Asian stock markets increased on Friday as the shock of an unexpectedly high inflation report in the United States faded, giving investors comfort that the worst price rises are nearing an end.

The Nikkei climbed 1.1%, helped by brisk earnings. MSCI’s broadest index of Asia-Pacific stocks outside Japan increased 0.25 percent, but mainland Chinese stocks fell 0.3 percent, according to the CSI 300 index.

Euro Stoxx futures are predicted to rise 0.15 %, while FTSE futures in the United Kingdom are expected to rise 0.1 percent. After a confusing session on Thursday, when the S&P 500 finished 0.06 percent higher and the tech-heavy Nasdaq gained 0.52 %, U.S. stock futures slowly crept % in Asia.

Following a surprise robust reading on U.S. inflation, world stock prices the most in over a month on Wednesday. In October, the consumer price index in the United States increased by 6.2 % year over year, the highest increase since November 1990.

“Inflation is undoubtedly a danger to be aware of Stock prices, on the other hand, will only notice a significant drop. If the Federal Reserve turns to be wholly incorrect in its assessment and is compelled to increase interest rates quickly.

That’s not where we are now “Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, shared these sentiments.

While the inflation data showed that the current wave of price increases caused by chronic global supply issues might last longer than many had expected. Many investors believe inflationary pressure would eventually ease rather than strengthen.

“This year’s holiday sales in the United States are expected to increase by 8.5 percent to 10%, with some buyers starting to shop earlier than usual due to concerns about supply shortages.

The October retail sales data for the United States is due next Tuesday. After a market holiday on Thursday, bond yields slightly increased, with the 10-year U.S. Treasury yield rising 0.8 basis points to 1.565 % on Friday. Two rate hikes are already built into the money markets for next year.

As investors sought inflation hedges, gold prices remained at five-month highs. They were last trading at $1,859 per ounce, close to the high of $1,868.5 set on Wednesday.

Source: U.S.News

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