Global stock markets plunge on interest rate hike fears
Global stock markets plunged on Thursday as investors fear more US interest rate hikes and the risk of recession.
Investors’ sentiments were hit by FOMC minutes released on Wednesday on the Federal Reserve’s last interest-rate meeting, which indicated that more hikes lay ahead aimed at taming inflation.
US stocks
In the US, the S&P 500 lost 35.23 points, or 0.8%, at 4,411.59. The Dow Jones Industrial Average dropped 366.38 points, or 1.1%, at 33,922.26. The Nasdaq composite fell 112.61 points, or 0.8%, at 13,679.04.
A report from ADP Research Institute showed hiring by private employers was much stronger in June than economists expected, with nearly twice as many jobs created than forecast.
The ADP report added to investors’ fears of interest rate hike by the Fed.
The yield on the 10-year treasury rose to 4.03% from 3.94% late Wednesday. It helps set rates for mortgages and other important loans. The 2-year treasury yield climbed to 4.99% from 4.95%.
Currencies
The US dollar fell to 144.15 Japanese yen from 144.68. The euro rose to $1.0881 from $1.0853.
Europe
European stocks declined on Thursday, with the pan-European STOXX 600 index closing 2.3% down.
The EURO STOXX 50 lost 2.9% at 4,223.09.
Technology stocks fell 3%, while the real estate sector tumbled 4.2%.
Britain’s FTSE 100 fell 2.2% at 7,280.50. Germany’s DAX dropped 2.6% at 15,528.54. France’s CAC 40 tanked 3.1% at 7,082.29.
Asia
In Asia, stock markets fell on Thursday, led by Hong Kong shares.
Hong Kong’s Hang Seng index slumped 3% at 18,533.05. China’s Shanghai Composite lost 0.5% at 3,205.57.
Japan’s Nikkei 225 dipped 1.7% at 32,773.02.
Australia’s S&P/ASX 200 index ended 1.2% lower at 7,163.4 points. New Zealand’s benchmark S&P/NZX 50 index closed 0.4% lower at 11,959.330 points.
Energy prices
Brent crude for September delivery fell 13 cents to $76.52 a barrel on Thursday. US crude oil benchmark for August delivery rose 1 cent to $71.80 a barrel.
Natural gas for August delivery fell 5 cents to $2.61 per 1,000 cubic feet.
Bullion
Gold for August delivery fell $11.70 to $1,915.40 an ounce. Silver for September delivery fell 51 cents to $22.89 an ounce.
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Updated: 07 Jul 2023, 02:48 AM IST
