Global stock markets fell due to interest rate worries.

DNHN - As officials continue to view inflation as a risk, the Federal Open Market Committee of the US Federal Reserve signaled that another rate hike is imminent.

Investors were concerned that interest rates would continue to rise and China's economic outlook was uncertain as the week came to a close.

Wednesday's minutes from the Federal Open Market Committee of the US Federal Reserve indicated that another rate hike is imminent as officials continue to view inflation as a threat.

According to the minutes, the majority of officials "continue to see significant upside risks to inflation, which may require further tightening of monetary policy."

After pausing the tightening cycle in June, the Fed raised its policy rate for the eleventh time since March 2022 by 25 basis points, the highest level since 2001, to reduce inflation to the low range. 2% target once the price reaches 4%. -The decade's peak is in June 2022.

Since March 2022, the Fed has raised rates by a total of 525 basis points, but investors are becoming more optimistic that the US central bank may begin cutting rates by the end of the year. 2024, as inflation has declined significantly since its summer peak.

The most recent economic data, particularly the better-than-expected report on retail sales, indicated that inflation is likely to remain on the rise, thus dashed these hopes.

The US economy added approximately 187,000 jobs in July, below the 200,000 expected by analysts; data suggests that a Fed rate hike could lead to the elusive soft landing or reduce inflation without triggering a recession.

Next week, markets will anticipate Fed Chairman Jerome Powell's speech at the Fed's annual symposium in Jackson Hole, Wyoming.

China's central bank lowered its policy rate for the second time since June to stimulate sluggish economic growth.

The second-largest economy in the world has officially entered deflation, with consumer and producer prices falling year-over-year in July.

Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note, "Uncertainties persist, but the resilience of US consumer spending has weakened investor sentiment." increased inflation expectations and Federal Reserve hawkishness once more."

The majority of Wall Street indexes were flat, with the S&P 500 declining 0.1%. The index has lost approximately one-fourth of its gains in August alone, compared to its strong gains in the first seven months of 2023.

The Dow Jones Industrial Average increased by a negligible 0.1%. The technology-heavy Nasdaq composite index dropped 0.2%, marking its fourth consecutive decline and longest weekly losing streak since December.

The S&P 500 fell 2.1% for the week, the Dow fell 2.2%, and the Nasdaq fell 2.6%. By 2023, however, they continue to rise, reaching 13.8%, 4.1%, and 27%, respectively. The Nasdaq has been supported by a thriving technology sector.

In Europe, stock markets closed in the red, dragging share prices to a six-week low, also weighed down by interest rate worries affecting the Chinese economy and the healthcare and banking sectors.

At Friday's close, the FTSE 100 was down 0.7%, its worst performance in approximately five months and its largest weekly decline in over a month.

At other major European exchanges, the Frankfurt DAX and the Paris CAC 40 both declined by 0.7% and 0.2%, respectively.

Concerns about China's economic outlook led to significant declines in Asian stocks on Friday, with Hong Kong's Hang Seng losing 2.1% at the close and the Shanghai Composite falling 1%.

The Nikkei 225 fell 0.6%, while the Kospi fell 0.6% as well.

Oil prices continued to rise on Friday, but posted their first weekly loss since June, snapping a seven-week streak of gains due to concerns about China's economic growth and tightening. greater currency.

Brent crude rose 0.81 percent, or $0.68, to $84.80 per barrel, while West Texas Intermediate rose 1.07 percent, or $0.86, to 81.25 USD. Both Brent and WTI are down about 2.3% for the week.

In the meantime, gold was relatively unchanged, increasing by less than 0.1%, or $1.30, to $1,916.50 per ounce, marking a third consecutive week of declines, also due to expectations of sustained gains. Highly capable.

The chief market strategist at Blue Line Futures, Phillip Streible, stated that the precious metal, a hedge against high inflation, "does not appear to be an ideal asset class in the current environment."

Hai Anh t/h