Both US and European stock markets declined on Tuesday following sharp remarks by Federal Reserve Chairman Jerome Powell in his testimony before the US Congress.
Jerome Powell said Tuesday that the Federal Reserve is more likely to raise interest rates than previously estimated.
“Although inflation has eased in recent months, the process of getting inflation back to 2% has a long way to go and is likely to be a bumpy one,” Powell told the Senate Banking Committee.
“The latest economic data came in stronger than expected, suggesting that the final level of interest rates is likely to be higher than previously thought. If the totality of the data indicates that a faster tightening is necessary, then we will continue to raise rates.” Will be ready to increase the speed of
All three major US stock indexes fell more than 1%. The Dow Jones Industrial Average fell 1.67% to 32,873.09. The S&P 500 closed down 1.55% at 3,985.77. The Nasdaq Composite closed down 1.2% at 11,535.54.
The US dollar edged higher against the British pound, euro and yen as higher rates make the greenback more attractive to investors.
european shares
The pan-European STOXX 600 index fell 0.8% on Tuesday. Realty and technology stocks were the biggest losers.
France’s CAC 40 closed down 0.5% at 7,339.27. Germany’s DAX closed down 0.6% at 15,559.53.
Britain’s FTSE 100 closed down 0.1% at 7,919.48.
asian stock
Asian shares fell on Tuesday on weak economic data from China.
China’s exports and imports declined sharply in January-February this year, data showed on Tuesday.
Hong Kong’s Hang Seng fell 0.3%. The Shanghai Composite index slipped 1.1%. South Korea’s Kospi rose less than 0.1%.
Japan’s Nikkei 225 rose 0.3%.
MSCI’s index of Asia-Pacific shares outside Japan fell 0.83%.
Australia’s S&P/ASX 200 rose 0.5%.
bullion
Gold prices fell more than 1% on Tuesday as the US dollar gained after Powell’s testimony.
Spot gold fell 1.8% to $1,813.11 an ounce at 1854 GMT.
Spot silver fell 4.7% to $20.04 an ounce.
Following Powell’s testimony, investors’ attention will turn to US jobs data for February that is to be released on Friday.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.