by Amanda Cooper and Tommy Wilkes
LondonSeptember 23 – Stocks hit a two-year low on Friday, the dollar hit a two-decade high and bonds sold out again as investors feared further hikes in interest rates to control inflation, while the UK Its assets had collapsed following the announcement of a heavily debt-financed tax. cut.
* Britain’s wealth was already low, but exacerbated their decline after Britain’s new finance minister unveiled a historic tax-cutting agenda that would skyrocket government borrowing.
* British bond yields were headed for their biggest daily rise in decades, with money markets expecting Bank of England interest rates to rise to 5% by May next year. The British pound fell by 2%.
* The mood in the markets remained sour throughout the week, with major central banks offering a rise of another 350 basis points to fight inflation, an intervention from Japan to boost buying yen and depressed managers’ index data on Friday, which Points to a deepening slowdown in major economies.
* The United States, the United Kingdom, Sweden, Switzerland and Norway, among other countries, increased rates, but it was the Fed’s signal that it expects higher rates in the country by 2023 that triggered the latest sell-off.
* World Stock Index of MSCI on Friday hit its lowest level since mid-2020, falling nearly 12% in the month since Federal Reserve Chairman Jerome Powell made clear inflation needs to be brought down, despite the damage of its impact. It can bring
* The euro fell for the fourth day in a row after data showed the German economy’s recession deepened in September as consumers and businesses grapple with an unprecedented energy crisis and rising inflation.
* European stocks traded in the red for the second day in a row under pressure from losses in everything from banks to natural resources to technology stocks.
*Pan-European Index STOXX 600 was down about 2.2%, while dex Frankfurt was down 1.94%, making it one of the worst-performing European indices.
* S&P Emini futures fell 1.15%, suggesting a session low on Wall Street.
* The FTSE London was down 1.9% as the British pound fell 2%, hitting another 37-year low and at one point hitting $1.1022.
* With US interest rates rising sharply and expected to last longer, the dollar hit its highest level in two decades, while the 10-year Treasury yield has risen as investors dump inflation-sensitive assets such as bonds. Huh.
* Return on 10-year loans rose 5 basis points to 3.776%, another 11-1/2-year high, and is on track for an eighth consecutive weekly increase.
* Euro zone bond yields also rose strongly, with Italy’s 10-year yield reaching 4.294%, the highest since late 2013, ahead of Sunday’s Italian election.
* The euro hit another 20-year low, as low as $0.9736.
* The dollar rose 0.4% to 142.97 per dollar against the Japanese currency. Some believe the yen will continue to rise as the Bank of Japan remains sluggish.
* Gold, which is interest-free, has come under pressure especially from rising yields during the quarter. It was down 1.55% at $1,644 an ounce, its lowest level in two years.