Markets

Wall St closes in the red; SGX Nifty indicating a muted start for markets

istockphoto-wall street1

Wall Street closes in red.

Photo : iStock

New Delhi: Wall Street closed lower in choppy trade Wednesday, after Federal Reserve Chairman Jerome Powell reiterated his commitment to combating inflation through higher interest rates, but said a recession couldn’t be ruled out… even as some traders now expect the central bank to closely monitor the impact of its rate hikes on the economy.

The Dow Jones Industrial Average declined 0.15%, while the S&P 500 index declined 0.13%, and the NASDAQ Composite index lost 0.15%.

European stocks closed lower on Wednesday, reversing gains made in the previous sessions as global volatility continues. In Europe, stocks fell for the first day this week as miners and energy tumbled with commodity prices. In Europe, U.K. inflation hit a new 40-year high of 9.1% year-on-year in May as soaring food and energy prices continue to deepen the country’s cost-of-living crisis.

The lower trade in Europe came as global market sentiment shifted to a more negative setting amid fears over surging inflation and slowing economic growth.FTSE closed 0.88% lower, while CAC and DAX remained flat.

Oil fell along with other key commodities as concern over a global economic slowdown intensified, with Federal Reserve Chair Jerome Powell warning a US recession is possible. West Texas Intermediate dropped below $104 a barrel in Asian trading after closing at a six-week low on Wednesday. Brent Crude fell below the $110 per barrel mark.
U.S. Treasury yields were lower on Wednesday as risk-off sentiment returned to global markets.

The yield on the benchmark 10-year Treasury note was down 15 basis points to 3.154%

Shares in the Asia-Pacific were mostly higher on Thursday as investors continued to monitor recession concerns. The Nikkei 225 in Japan was almost flat, and the Topix was up slightly. South Korea’s Kospi gave up its gains to fall 0.29%. SGX Nifty is indicating a muted start for the India equity markets.

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