Global stock markets fall due to central banks’ moves on interest rates

the Global stock markets decline for the fifth consecutive session This Thursday, the dollar reaches its highest level since March, while the British pound and the Swiss franc fall in a context in which central bank movements in terms of interest rates continue to provide surprises.

The feeling was really risk averse after that The Fed will signal that it is likely to have at least one more interest rate increase As part of the tightening cycle that began early last year.

A decline in European stock markets and expectations that Wall Street will do the same means the MSCI global stock index is heading towards a fifth day in the red.Recording its longest losing streak since March.

Traders were surprised by the franc’s decline in Europe as the Swiss National Bank unexpectedly kept interest rates on hold, something that was repeated in the UK and sterling markets when the Bank of England did the same.

Bank moves and what’s next

Yes good Sweden and Norway stuck to the script and raised interest rates as expectedHe also surprised the latter by indicating that he might do so again in December. All of this makes Türkiye’s rise seem like a model of predictability.

Wall Street is set to open lower, and John Hardy, an analyst at Saxo Bank, said moves by European central banks showed there was now more uncertainty about when and where interest rates will peak.

“Different countries are going in different directions, in terms of the real data-driven responses we are seeing now“Especially for the UK,” Hardie said after the Bank of England’s decision, which halted for the first time after 14 consecutive increases.

“It punctures the balloon of final interest rates and also creates more doubts about the quality of the (economic) landings.” The British pound has fallen since July from $1.23 to $1.2223.

Wall Street is expected to be affected by the potential decline in mega stocks Sensitive to rates, such as Apple, Meta Platforms, Alphabet and Nvidia, most of which had a difficult month.

MSCI’s broadest index of Asia-Pacific shares ex-Japan fell 1.6%, its biggest move since early August. Japan’s Nikkei did slightly better, losing 1.4%.

In the absence of a crucial Bank of Japan meeting this week, the yield on Japan’s 10-year public debt will decline It was operating at the highest level in a decade, in line with its counterparts at the US Treasury, which reached a 16-year high after the Fed meeting, at 4.43%.