Bangkok, Dec 14 (BNA): Global stocks were mixed ahead of the Federal Reserve’s decision to raise the final interest rate for this year.
London, Paris and Frankfurt fell while stocks in Asia rose. US futures fell and oil prices also fell, according to the Associated Press.
A 7.1% rise in the US consumer price index for November raised hopes that the pressure on the economy may ease, as the Federal Reserve is widely expected to raise its benchmark interest rate by half a point on Wednesday, down from four previous hikes of three-quarters of a point. . .
An interest rate decision by the Bank of England and the European Central Bank is expected on Thursday.
Germany’s DAX fell 0.6% to 14,407.75, while the CAC 40 in Paris also lost 0.6%, to 6,704.70. Britain’s FTSE 100 lost 0.4%, to 7,471.04. Futures for the Dow Jones and the Standard & Poor’s 500 changed little.
The Bank of Japan’s latest quarterly tankan survey showed deteriorating business conditions for major Japanese manufacturers, reflecting rising industrial and energy input costs and weak demand as the Fed and other central banks raise interest rates to tame inflation.
A 0.50 percentage point hike in the Fed rate is usually a big deal because it’s twice the usual move.
But with inflation emerging from its worst level in generations, it would be a reversal of the four 0.75 percentage point increases the Fed has agreed to since the summer.
Even if inflation finally recedes, the global economy is still threatened by the price increases that have already been paid. The housing industry and other businesses that rely on low interest rates have shown particular vulnerability, and concerns about the strength of corporate earnings are growing widely.
Brent crude, the basis for pricing international trade, fell 1 cent to $80.67 a barrel.
The dollar fell to 135.14 yen from 135.59 yen. The euro rose to $1.0664 from $1.0633.
insignificant