World stocks mixed after the Federal Reserve says it’s ready to deal with inflation

Beijing-The global stock market rose most Thursday after the Federal Reserve showed that it was ready to raise interest rates faster than expected if it needed to cool US inflation.

Markets in London, Tokyo, Frankfurt and Hong Kong have moved forward, but Shanghai has declined.

Wall Street futures were expensive. The US market was closed due to Thanksgiving holidays. They will resume on Friday due to the shortened trading session.

Fed officials said at a policy meeting in October that they “did not hesitate” to deal with inflation, according to a memo released Wednesday. They foresaw the possibility of raising interest rates “faster than participants currently expect.”

The fanned investors are afraid that the Fed and other central banks may feel pressure to withdraw the economic stimulus that is pushing up stock prices. The Federal Reserve has previously said it could raise rates later next year.

Mizuho Bank’s Tan Boon Heng suggests that the attitude at the next meeting of the Federal Reserve Board (FRB) may be “dumbly hawkish.”

In early trading, London’s FTSE rose less than 0.1% to 7,289.90 and Frankfurt’s DAX rose 0.3% to 15,927.78. Paris’ CAC 40 was up 0.3% to 7,063.84.

S & P 500 and Dow Jones Industrial Average futures rose 0.3%.

In Asia, the Shanghai Composite Index fell 0.2% to 3,584.18 and the Nikkei 225 in Tokyo rose 0.7% to 29,499.28. Hong Kong’s Hang Seng Index rose 0.2% to 24,740.16.

The KOSPI index in Seoul fell 0.5% to 2980.27 after the central bank of South Korea raised the policy interest rate by 0.25 points to 1% as expected.

On November 25, 2021, currency traders are monitoring monitors at the Forex Trading Office at KEB Hana Bank’s headquarters in Seoul, South Korea. (Ahn Yong Joon / AP photo)

The S & P-ASX 200 in Sydney rose 0.1% to 7,407.30 and the Sensex in India rose 0.8% to 58,811.46. New Zealand and Jakarta have moved forward, but Bangkok has declined.

On Wall Street, the S & P 500 rose 0.2%. The rise in technology, real estate and energy stocks has outpaced the slides of banks and materials companies.

The Dow fell less than 0.1%, but the Nasdaq Composite rose 0.4%.

Federal Reserve notes have shown that authorities still believe that this year’s inflation surge is likely to be temporary, but the prices allowed have risen more than expected.

The Note is an October meeting that resolved that federal board members would take the first step to roll back simple credit and other measures to support the economic recovery from the coronavirus pandemic. Covered.

A wide range of industries are experiencing inflationary pressures and disruptions in the supply of raw materials and parts. Forecasters are concerned that consumers may cut spending if retail prices continue to rise.

According to the US Department of Commerce, consumer spending in October increased by 1.3%, more than double the previous month.

The Ministry of Labor reported last week that the number of Americans applying for unemployment benefits fell to the lowest level in more than half a century.

In the energy market, electronic trading on the New York Mercantile Exchange dropped benchmark US crude oil by 5 cents to $ 78.34 per barrel. In London, Brent crude, which was used to price international oil, rose 10 cents to $ 81.15 a barrel.

The dollar fell from 115.48 yen to 115.36 yen. The euro rose from $ 1.1199 to $ 1.1221.

Joe Macdonald

Associated Press