The global markets saw a slight decline on Monday due to concerns that interest rates will remain higher for longer. This was further compounded by surging bond yields, which had a negative impact on the MSCI All-World index, causing it to drop by 0.05%.
Last week, central banks such as the US Federal Reserve and Bank of England issued warnings of potential interest rate hikes to curb rising inflation, leading to increased anxiety in global markets. However, US stocks managed to rise on Monday, with energy shares leading the way.
The S&P 500 saw a 0.4% increase, reaching 4,337.44, while the Dow Jones Industrial Average rose by 0.1% to reach 34,006.88. The Nasdaq composite also experienced gains, rising by 0.5% to 13,271.32. Notable companies like Exxon Mobil and ConocoPhillips experienced positive growth, with shares of Amazon and Netflix also seeing increases, while The Walt Disney Co. faced a small decline.
The yield on the 10-year treasury increased from 4.44% to 4.53%, leading to a rise in the value of the US dollar against the Japanese yen and a fall in value against the euro.
European and Asian markets, however, saw declines. The pan-European STOXX 600 index fell by 0.6%, with the FTSE 100 in Britain experiencing a decline of 0.8%. Germany’s DAX dropped by 1%, and France’s CAC 40 saw a decrease of 0.9%. LVMH and Kering, two prominent companies, faced losses due to concerns over China’s economic growth, while miners fell by 0.8%.
In Asian markets, the Hang Seng index in Hong Kong dropped by 1.8%, and China’s Shanghai Composite fell by 0.5%. On a positive note, Japan’s Nikkei 225 rose by 0.9%, and Australia’s S&P/ASX 200 index ended the day slightly higher. New Zealand’s benchmark S&P/NZX 50 index remained mostly unchanged.
In terms of energy prices, the US crude oil benchmark for November delivery fell slightly to $89.68 a barrel, while Brent crude for November delivery saw a marginal increase to $93.29 a barrel. Natural gas for October delivery remained unchanged at $2.64 per 1,000 cubic feet.
Lastly, gold for December delivery experienced a small decline to $1,936.60 an ounce, while silver for December delivery saw a decrease to $23.39 an ounce.
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– Definitions:
– Interest rates: The cost of borrowing or the return on investment for lending money, as set by central banks.
– Bond yields: The return on investment for bonds, which are fixed-income securities issued by governments or corporations.
– MSCI All-World index: An index that measures the performance of global equity markets.
– S&P 500: A stock market index that tracks the performance of 500 large companies listed on US stock exchanges.
– Dow Jones Industrial Average: A stock market index that tracks the performance of 30 large companies listed on US stock exchanges.
– Nasdaq composite: A stock market index that tracks the performance of over 3,000 companies, primarily in the technology sector.
– US dollar: The currency used in the United States and a widely accepted form of payment in global markets.
– Euro: The currency used by various countries in the European Union.
– FTSE 100: A stock market index that tracks the performance of the 100 largest companies listed on the London Stock Exchange.
– DAX: A stock market index that tracks the performance of the 30 largest and most liquid companies listed on the Frankfurt Stock Exchange.
– CAC 40: A stock market index that tracks the performance of the 40 largest companies listed on the Euronext Paris Exchange.
– Hang Seng index: A stock market index that tracks the performance of 52 companies listed on the Hong Kong Stock Exchange.
– Shanghai Composite: A stock market index that tracks the performance of all A-shares and B-shares listed on the Shanghai Stock Exchange.
– Nikkei 225: A stock market index that tracks the performance of 225 large companies listed on the Tokyo Stock Exchange.
– S&P/ASX 200: A stock market index that tracks the performance of 200 large companies listed on the Australian Securities Exchange.
– S&P/NZX 50: A stock market index that tracks the performance of the 50 largest companies listed on the New Zealand Exchange.
– Crude oil: A type of fossil fuel that is extracted from the ground and used as a primary source of energy.
– Brent crude: A type of crude oil that is widely used as a benchmark for pricing other types of crude oil.
– Natural gas: A colorless and odorless gas that is primarily composed of methane and used as a source of energy.
– Gold: A precious metal that is used for various purposes, including jewelry and investment.
– Silver: A precious metal similar to gold, often used for jewelry and investment purposes.