by Herbert Lash and Mark Jones
Nuevanew york,LondonNov. 17 – The dollar rose and stocks fell on Thursday after more hawkish comments from Federal Reserve officials reminded investors that less aggressive monetary policy is unlikely, while US jobs data showed a tight job market. to continue.
* Concerns about a persistent recession and rising interest rates roiled European markets as sterling weighed on hopes the UK would put behind its recent disastrous financial experiment a more visible budget.
* Initial optimism in Europe about Siemens earnings and the prospect of slowing European Central Bank rate hikes prompted further selling, followed by comments by Fed policymakers on Wall Street that rates won’t stay high long enough .
* “The narrative has increasingly shifted towards a more moderate inflation path next year and what if there was a significant slowdown in growth and recession,” said Subhadra Rajappa of Societe Generale in New York.
* Pan-European Index STOXX 600 lost 0.4% and measures global stocks MSCI It turned out to be 1.24%. Wall Street’s main indexes also remained down.
* Data on US jobless claims fell last week, indicating the labor market is tight despite the Fed’s aggressive rate hike.
* Rate hike expectations strengthened the dollar and weakened other currencies. The greenback lost 3.7% last week as worse-than-expected US consumer inflation data raised hopes the Fed may hold back on rate hikes.
* The euro was down 0.61% at $1.0329, and the yen was down 0.74% at 140.57 against the dollar.
* The pound fell 1.08% to $1.1779 after the new British government presented a 55 billion pound ($64.93 billion) tax hike and spending cut budget plan.
* Worries about the economic outlook have caused a sharp inversion of the US Treasury yield curve, suggesting investors are bracing for a recession.
* The spread between two-year and 10-year notes closed below -60 basis points for the first time since 1982, “which is concerning given its historical accuracy as a leading indicator of recession,” Jim said. Told. ,
* The spread between the return of two-year and 10-year notes operates at -69.8 basis points. The benchmark 10-year bond yield was up 9.6 basis points at 3.790%.
* In crude, crude fell more than 3%; Nickel, copper and tin also declined sharply; And spot gold was down 0.9% at $1,758.45 an ounce.