Global financial markets were mixed on Monday, US Treasury prices fell ahead of this week’s Federal Reserve monetary policy conference, and European stocks rose in hopes of negotiations between Russia and Ukraine.
Yields on 10-year Treasuries, which are inversely proportional to the price of benchmark government debt securities and set the tone for global borrowing costs, rose 0.04 percentage points to 2.05 percent, the highest since mid-February. did.
In the stock market, the Stocks Europe 600 Equity Index has fallen by more than a tenth so far this year as investors become more and more concerned about sanctions against Russia’s curbing commodity supply and causing a recession. Increased by 0.5%.
But elsewhere, as the world’s second-largest economy deals with the largest Covid-19 outbreak since the start of the pandemic two years ago, Chinese stocks are once again commonplace for widespread siege. I fell into a sign that it could be.
At a meeting on March 16-17, the Fed will raise key interest rates by at least a quarter point in a move that could affect other banks since the start of the coronavirus crisis two years ago. Is widely expected. Despite the economic risks of the Ukrainian war, central banks raise borrowing costs.
The US consumer price index rose to 7.9% annually in February, the highest in 40 years. Meanwhile, price increases are set to break records in the euro area and are expected to exceed 7% in the UK this spring.
“Chair Jay Powell has suggested that the Federal Reserve will start raising rates at 25. [basis point] A research house analyst at Gabecal said in a note to the customer.
“But inflation and inflation expectations continue to skyrocket, so we can’t rule out a 50bp hike.”
Hong Kong’s Hang Seng Index fell 5.3% and China’s CSI 300 Index fell 3.1%. This is after 17.5 million residents of Shenzhen have been blocked to contain the surge in the case of the Omicron coronavirus mutant.
This measure followed a similar measure in Changchun, a 9 million city in northeastern China, with an increase in incidents in Shanghai and many other large cities.
China reported more than 1,800 cases of Covid-19 on Sunday. This is the most daily case of two years, as authorities have struggled to contain the largest outbreak in the country since the coronavirus outbreak in Wuhan in 2020.
“The extended blockade will have a major impact on China’s economic growth,” said Raymond Yong, chief economist at ANZ’s Greater China. “This time, China’s GDP and half of its population will be affected.” I will receive it. ” Some of the affected areas could reduce the country’s economic growth by about 0.1 percentage points this year.
The Hang Seng Index of China’s leading technology stocks has fallen by more than 11%.
Oil benchmarks have also fallen in the hope that Russia will be actively involved in serious negotiations with Ukraine.
Leonid Slutsky, one of Russia’s negotiators, said in an interview with Russia’s state-run news channel RT Arabic: There has been progress. ” ..
Brent crude, the international benchmark, fell 3.3% to $ 109 a barrel, while US marker West Texas Intermediate fell 3.6% to $ 105 in response to signs of negotiations.
Kaushal Ramesh, Senior Analyst at Restad Energy, said: