Asian stocks fall – Fed tough policies and virus concerns – Asian stocks traded lower on Wall Street on Monday; Against the backdrop of tightening Federal Reserve policy and the latest version of Coronavirus. Hong Kong, Shanghai, Tokyo, and Sydney retreated at the beginning of the trading week. Wall Street fell on Friday when traders withdrew money; After the Fed indicated that it would fight inflation by accelerating the withdrawal of economic stimulus. Meanwhile, the spread of the Omicron option has raised fears that renewed travel and business restrictions could exacerbate supply chain disruptions and increase inflation. Omicron was secondarily called the Grinch in the trading sector. Experts suggest that his role in the Christmas robbery is precisely that. Currently, the market prefers safety to unpleasant surprises.
The Shanghai Composite Index fell to 3,605.21, down 0.8%. The Nikkei 225 fell 2.1% to 27,942.84. The Hang Seng traded up 22.837.64 and fell 1.5% overall. Kospi experienced a regression of 1.5%, falling to 2,971.59. The S&P ASX 200 lost 0.2% to 7,292.10. Sensex fell 2.1%, its benchmark is now 55.811.05. New Zealand won, while Jakarta and Singapore retreated. The U.S. government on Sunday issued a warning about a possible increase in breakthrough infections; Which is related to Americans traveling for the Christmas and New Year holidays. Last week, stocks rose slightly. However, it fell again after federation officials said they were ready to speed up the stimulus withdrawal, which boosted financial markets.
Fed Tough Policies – U.S. Government
In parallel, the U.S. senator said Sunday that he would not support Biden’s $2 trillion in infrastructure; Climate Plan and Social Costs and Climate Plan. Joe Manchin’s statement could ruin the plan’s chances in an equally divided Senate. The Wall Street S&P 500 Index fell 1% to 4,620.64 on Friday. This is already the third lost week. The index is 2% lower than the all-time maximum, And 23% over the year. The Dow Jones Industrial Average fell to 35.365.44, up 1.5%. The Nasdaq fell to 15.169.68, up 0.1% overall. Federation officials said Wednesday that it might accelerate the reduction in bond purchases. This, in turn, keeps interest rates low and injects money into financial markets. This is the basis for the Fed to start raising interest rates next year. Inflation has been a growing concern throughout the year. Supply chain problems and higher raw material costs increase overall costs for businesses. This has pushed up prices to compensate for the impact on goods.
Consumers have so far grasped this price increase. However, they are under constant pressure due to rising prices. This can eventually lead to cost reductions. Any reduction in costs could hamper economic growth. In the energy markets, U.S. oil prices fell to $64.34. The contract was downgraded to $70.86 on Friday. The cost of Brent oil in London declined to $71.30. In the previous session, It lost $1.50; And totaled $73.52 a barrel. The dollar fell to 113.48 yen on Friday. The euro has remained stable.
Virus Concerns and European Stocks
European stocks fell. New restrictions have been imposed over the past few days due to COVID record cases in the U.K. SXXP fell 2.03%. The DAX was down 2.42%. On Sunday, the Netherlands closed educational shops, non-essential shops, bars, and restaurants until 14 January. France and Austria have tightened travel restrictions. Ireland has imposed a curfew. The governments of Italy and Spain also met to take new measures.
The introduction of the new version of Omicron will make it easier for countries to develop combat mechanisms. As for the stocks, even though the end of 2021 is not perfect. We should hope for a better waist.
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