Global Stocks Show the Worst Sessions For the Months
The focus of market participants remains on the fall of the major US stock indices, which have lost from 3 to 4% overnight. Overnight, the DOW dropped 831.83 pts or 3.15% to 25598.74. S&P 500 lost 3.29% and NASDAQ fell 4.08%. The S&P 500 recorded its worst day since February and secured its first five-day losing streak since 2016.
European stocks are set to become the latest casualty in the global sell-off that has rattled markets. The indices were under pressure from the continuing increase in the yield of US government bonds, as well as concerns about the negative impact of the US-China trade war on corporate returns.
His opinion on the reduction of stock indices was voiced by US President Donald Trump. According to Trump, the Fed is to blame for lowering stock markets, which is raising rates, and not at all the trade war with China. “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.” He added “actually, it’s a correction that we’ve been waiting for a long time, but I really disagree with what the Fed is doing.”
US inflation data is in focus today. Higher-than-expected inflation could encourage the Fed to tighten rates faster. Headline CPI growth is expected to ease to its lowest since March on a yearly basis. September’s CPI is anticipated to grow by 0.2% on a monthly basis, the same as in August. This would put the annual rate of growth in the measure at the six-month low of 2.4%. Core CPI is awaited to be 2.3% yoy from 2.2% yoy in August.