Reuters. File photo: A man with an electronic board showing the Shanghai and Shenzhen stock index stands on an overpass in Shanghai.
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LONDON (Reuters) – Europe’s stock index opened lower on Wednesday as investors focused on the US Federal Reserve meeting and the earnings of US tech giants.
The MSCI World Equity Index, which tracks stocks from 49 countries, was down 0.1% at 0842 GMT, after falling to a new all-time high on January 21 last week.
In the Asian session on Wednesday, the stock suffered some gains as investors were wary of a stretched valuation.
European stock index opened in red. Which was around 0.3% on the day at 0854 GMT.
London was down 0.2% while 0.5%.
European markets opened higher against the basket of currencies as soon as they opened and rose 0.1% that day, to 90.275 at 0846 GMT.
The Fed is not expected to make any policy changes but investors will hear any mention of a change in tone around the economic outlook and a slowdown – or “tapping” – by buying Fed assets.
“There’s going to be a big question mark over any time it takes to tap into a property purchase, but Powell is likely to take a reckless approach, and given the challenging near-term outlook and the rest of the uncertainties, it’s premature to think about it.” Dutsh Bank (DE 🙂 strategist Jim Reid wrote in a note to customers.
The previous session was planned closer to what it had been at a three-week low, and that day was largely flat at 1.0398% at 0846 GMT.
U.S. including Facebook (Nasdaq 🙂 and Apple Pal (Nasdaq :). The tech giants ’quarterly earnings, later in the session, were also at the center.
Jim Reid of Deutsche Bank said that while currently trading on some financial assets that many describe as bubble territory, more attention will be paid to these releases to determine whether this current valuation is justified.
However, were around 0.1%, Nasdaq futures rose 0.4% at 0847 GMT, helped by strong micro .ft (Nasdaq 🙂 previous session earnings. Microsoft said its Azure cloud computing services have grown by 50%.
The sharp participation of retail investors in the stock market came to the fore this week, as amateur traders in Reddit’s R / Wall StreetBates stock trading discussion group, Gamestop (NYSE :), clashed, while professional shortsellers stood up to cover the losing bets.
For some stock market professionals, the recent measures seem symbolic of the stock market, which is evaluated at the end of the year dominated by a flood of financial and monetary stimulus to ease the coronavirus crisis.
The International Monetary Fund raised its forecast for global economic growth in 2021 and said last year’s coronavirus-related recession would be about one per cent lower than expected.
Global COVID-19 cases surpassed 100 million on Wednesday and countries around the world are struggling with new strains of the virus and delays in vaccine rollouts.
The U.S. president aims to get enough vaccine doses to vaccinate most Americans by summer, President Biden said Tuesday.
In Europe, the supply of the COVID-19 vaccine has been delayed. Hospitalization in France is at an eight-week high.
At 0848 GMT the euro was down 0.1% at 21 1.21455, while the euro zone government bond yields improved slightly.
Gold was down about 0.2%. 3 .. was around 3.%.
Industry figures show that stocks fell unexpectedly last week and oil prices rose, with China witnessing its lowest daily gain in more than two weeks in 19 Kovid-19 cases.
For the graphic on the Fed balance sheet:
https://fingfx.thomsonreuters.com/gfx/mkt/xegvbeqrdpq/FedBalanceSheet.png
