Home » Tokyo stock market up slightly, Hong Kong and Seoul over -1% in view of the Fed and with US-Russia tensions over Ukraine

Tokyo stock market up slightly, Hong Kong and Seoul over -1% in view of the Fed and with US-Russia tensions over Ukraine

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Financial markets in the grip of Omicron, fear of inflation and geopolitical tensions, which see the West and Vladimir Putin’s Russia as protagonists, due to the Ukraine factor.

According to State Department sources, the United States has ordered the evacuation of the families of American diplomats from the country, “due to the persistent threat of a Russian military operation.”

The US State Department communiqué states that “the security situation, particularly along the borders of Ukraine, in Russian-occupied Crimea and in Russian-controlled Donetsk, is unpredictable and could deteriorate at any moment.”

According to some US media, American President Joe Biden is considering the option of sending up to five thousand soldiers to the Baltic and Eastern Europe.

In Asia, the positive exception was the Nikkei 225 index on the Tokyo stock exchange, which closed today’s session up 0.24%, at 27,588.37 points; Shanghai flat, while Hong Kong lost 1.06%; the Seoul stock exchange was very bad, with the Kospi back by 1.49%. The Sydney stock exchange closed down 0.51%.

The futures on the US stock exchange, on the other hand, did very well, with those on the Dow Jones up by 0.66%, those on the Nasdaq marking an increase of 0.82% and those on the S&P 500 up by more than 0.72%.

Equities in trepidation ahead of the upcoming meeting of the FOMC – the monetary policy arm of the Fed -, which will begin tomorrow January 25, to end the day after tomorrow January 26.

Over the weekend, David Mericle, an economist at Goldman Sachs, wrote in a note that there is a risk that the Fed will be forced to raise rates more than four times, in 2022, due to runaway inflation in the US:

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“Our base scenario is four (monetary) squeezes in the months of March, June, September and December – wrote Mericle, in the note reported by the CNBC website – But we see the risk that the Fomc decides to act in a restrictive sense in each of the scheduled meetings (scheduled), until the inflation picture changes “.

Keep an eye on the trend of the Nasdaq, official victim of the outlook of a more bullish Fed: the price list has entered the correction phase and suffered a fall of 7.6% on a weekly basis, ending the worst week since March 2020, when the global equity plummeted in the wake of the announcement of the Covid-19 pandemic.

On Friday the Nasdaq Composite closed 2.7% lower at 13,768.92; the Dow Jones Industrial Average lost 450.02 points to 34,265.37; the S&P 500 fell 1.9% to 4,397.94. But today US futures anticipate precisely the desire for recovery of the US stock exchange.

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