World stocks fall, Wall Street futures fall, dollar rise


Global equities fell from record highs in the previous session, European equities fell, Wall Street futures fell on Wednesday, keeping an eye on the pace of economic recovery, but investors are more risky assets The dollar reached a week-long high as it reduced its exposure to.

MSCI’s national global stock index rose 0.34% after seven consecutive days, but in Europe, the STOXX index of 600 European companies was 2.76 points, or 6:52 am New York time on September 8. At that point it was down 0.58%.

Germany’s DAX index fell 111.14 points, or 0.70 percent, the UK’s FTSE 100 fell 35.32 points, or 0.49 percent, while France’s CAC 40 fell 25.47 points, or 0.36 percent.

In the US-focused market, as of 6:44 am New York time, Nasdaq futures fell 12.50 points (0.08%), S & P 500 futures fell 4.00 points (0.09%) and Dow Jones futures fell 41.00 points (0.09%). 0.12%) It fell. ..

The DXY Dollar Index, which measures currencies against six major rivals, rose 0.17 points to 92.68 as of 6:46 am New York time, hitting a near-week high.

Optimistic views on economic resumption, coupled with central bank monetary easing policies, have pushed global equities to record highs, while raising concerns about the potential cooling effect of the spread of delta variants on economic activity. increase.

Sebastien Galy, senior macro strategist at Nordea Asset Management, told Reuters: “What seems to be in front of us is a continuous but temporary period of 1-3 months of economic activity that seems to have started in August. It’s a slowdown. “

Investors are also continuing to look at the impact of last week’s disappointing employment report in the United States. This shows that US employers have added far less employment than economists predict.

Labor markets are an important touchstone for the Fed, and Federal Reserve Chairman Jerome Powell said Jackson Hole Symposium A few weeks ago, reaching full employment was a prerequisite for central banks to begin tapering asset purchases. The Federal Reserve Board makes approximately $ 120 billion in monthly purchases of Treasury securities and mortgage securities. This is one of the crisis relief measures that the central bank deployed last year to lift the economy out of the pandemic recession.

Some experts argue that weak employment data is likely to elicit a timeline for the Federal Reserve’s decision to reduce asset purchases, known as tapering, but James Bullard of the Federal Reserve Bank of St. Louis Governor Told the Financial Times In an interview Wednesday, the central bank said it needed to cut back on bond purchases, despite slowing employment growth.

“There is a lot of demand for workers and there are more jobs than unemployed,” Bullard told the outlets. “I am confident that if we can unite our workers and manage our pandemics better, we will have a very strong labor market next year.”

Ministry of Labor JOLTS report, Will provide the latest images of jobs in the United States. The last JOLTS report showed a record high of 10.1 million jobs, in contrast to more than 8.4 million unemployed people who are actively looking for jobs in the United States.

At the Jackson Hall symposium, Powell said further signs could be “appropriate to start slowing down asset purchases this year” if further signs confirm the strength of the labor market recovery. Analysts are immediately predicting the possibility of an announcement at the Fed’s next policy meeting from September 21st to 22nd.

Reports of disappointing work prompted some economists to reassess their expectations. Wells Fargo analysts wrote in a memo (pdfDownbeat non-farm payrolls mean that the door was “fully closed” with the September taper announcement.

In an interview with the Financial Times, Bullard explained more clearly when the Fed is likely to start tapering.

“The big picture is that the taper starts this year and ends someday by the first half of next year,” he said.

Reuters contributed to this report.

Tom Ojimek

Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communication, and adult education. The best writing advice he has ever heard is from Roy Peter Clarke.