November 28, 2022

Dubai Week

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Data trades US and European stocks during a tumultuous week

Data trades US and European stocks during a tumultuous week

Rising tensions after the Wall Street inflation data, and volatility in stock trading, and the recent sell-off combined largely with uncertainty, with the Standard & Poor’s 500 index falling 117.05 points to close at 2.91%. At 3900.77 points the Nasdaq Composite was down 415.07 points or 3.53% at 11339.16 points and the Dow Jones Industrial Average was down 882.47 points or 2.73% at 31395.72 points.

U.S. stocks fell sharply on Friday, recording the biggest weekly percentage decline since January, and according to data, the Standard & Poor’s Week was up 5.06%, the Dow Jones 4.58% and the Nasdaq 5.60% higher than expected. The U.S. raised investor fears in May that consumer price inflation in the states and the Federal Reserve would raise higher interest rates, and estimates of technology stocks that will depend on future liquidity led to a decline.

After the inflation report, the US 10-year treasury yield reached 3.152%, the highest level since May 9, and the consumer price index rose 1% last month after the US Department of Labor report rose 0.3% in April. A Reuters poll by economists expected monthly CPI to rise 0.7% and year-on-year CPI to 8.6%, the largest increase since April 1981 after 8.3% growth.

European

On Friday, European stocks fell 2.7%, and the likelihood of a recession increased as central banks tried to control prices after inflation in the United States exceeded expectations.

Pan-European Stoxx 600 losses were widespread, leading to a 4.8% decline in the banking sector. The index continued its losses for the fourth consecutive session, reaching its lowest level since May 12, and will face losses of more than 3% on a weekly basis.

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Italy’s MIB index fell 5.2% to a three – month low. Spain’s ipex fell 3.7%, while other major exchanges in the region each lost more than 2%.

The main inflation rate for the United States for May was 8.6%, which is higher than expected at 8.3%, indicating that the Federal Reserve will raise interest rates by 50 basis points until September to combat inflation.

Shares traded higher on Thursday, after the European Central Bank said it would raise interest rates for the first time since next month after 2011, and may make big moves in September.

Eurozone shares fell 3.1% on Friday.

Concerns about demand and growth have increased in China, the world’s second-largest economy, after Shanghai and Beijing imposed new sanctions to combat COVID-19. Among individual stocks, GlaxoSmithKline rose 1.6 percent, with the pharmaceutical company proving successful in one of its vaccines in a delayed trial involving the elderly.

Shares of regional airlines plummeted during the busy summer months as labor disputes in Europe raised expectations of travel problems.

Shares of Ryanair, International Consolidated Airlines, Lufthansa and Wizz Air fell 1.6 to 4.1 percent.

Japanese

Japan’s Nikkei Index ended its five-session winning streak on Friday, with the central bank’s monetary policy tightening in anticipation of key US inflation data as investors watch Wall Street fall overnight.

The Nikkei Index was up 0.23% for the week, gaining for the fourth week in a row, with the broader Topix index up 0.51% for the week.

On Friday, shares of growth firms fell 1.73% as stocks expected to grow at a much higher rate than the market growth rate, including technology firms.

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Chip test tool maker Advantest fell 4.2%, while chip maker Tokyo Electron fell 3.22%.

Shares of Fast Retail, the apparel chain of Softbank Group for Uniclo and Technological Investments, fell 0.93% and 2.01%, respectively. (Reuters)