Home Business Yingwei Financial Market Express: The Republican Party’s performance in the US mid-term elections fell short of expectations, dragging down market sentiment! Follow inflation data provider Investing.com

Yingwei Financial Market Express: The Republican Party’s performance in the US mid-term elections fell short of expectations, dragging down market sentiment! Follow inflation data provider Investing.com

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Yingwei Financial Market Express: The Republican Party’s performance in the US mid-term elections fell short of expectations, dragging down market sentiment! Follow inflation data provider Investing.com
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Investing.com – Markets failed to see a big U.S. Republican victory in the U.S. midterm elections on Wednesday, and the Biden administration’s future tax hikes and spending plans may be difficult to thwart. Market analysts pointed out that the Republicans control the Senate and House of Representatives. The target is likely to be missed, and the fiscal policy outlook is not expected to improve significantly, bringing the market focus back to the Fed and the domestic economy.

The U.S. will announce on Thursday that the market is expected to slow down to 7.9% year-on-year. The U.S. 10-year bond yield fell first and then fell 4.8 basis points to 4.08%.

In addition, New York Fed President John Williams said at a conference in Switzerland on Wednesday that long-term U.S. inflation expectations remained stable despite increased uncertainty about inflation.

European and American stock markets

The performance of the U.S. Republican Party in the mid-term elections was not as good as expected. After rising for 3 consecutive trading days, U.S. stocks retreated significantly on Wednesday. As of the close, they fell 646 points or 1.95% to 32513 points; down 2.08% to 3748 points; down 2.48%, reported 10353 points.

In terms of individual stocks, Facebook’s parent company Meta Platforms Inc (NASDAQ: ) announced a substantial layoff of 11,000 employees to reduce costs. The news stimulated the stock price to rise 5.18% against the market trend and regained $100.

Tesla (NASDAQ: ) shares fell 7.17% on Wednesday after CEO Elon Musk cut his stake by nearly $4 billion.

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In addition, The Walt Disney Company (NYSE: ) more than doubled the loss of its streaming media business, dragging its stock price down 13.15%, making it the worst performing Dow component and the worst since March 2020.

It should also be noted that the cryptocurrency market collapsed and related stocks were washed. Coinbase Global Inc (NASDAQ: ), the largest cryptocurrency exchange in the United States, and Robinhood Markets Inc (NASDAQ: ), the largest cryptocurrency exchange in the United States, followed by 10% and 19% respectively on Tuesday. %, fell another 9.54% and 13.76% on Wednesday.

In terms of European stocks, in the US mid-term elections, the news that the Republican Party did not perform as well as the market expected was also negative for the investment sentiment in European stocks. As of the close, it closed 0.3% lower at 420 points; closed at 13666 points, down 0.16% or 22 points; {167|French CAC 40 Index}} closed at 6430 points, down 0.17%; closed at 7296 points, down 0.14% or 9 point.

Asian stock markets

A shares: The whole day closed at 3048 points, down 16 points or 0.53%, with a turnover of 306.861 billion yuan; the whole day closed at 11055 points, down 87 points or 0.79%, with a turnover of 471.82 billion yuan; at 2399 points, down 33 points or 1.36%.

Hong Kong stocks: The whole day fell 198 points or 1.2% to 16,358 points; it fell 1.2% to 5534; it closed at 3280, down 1.9%; the market turnover was 111.297 billion yuan.

It should be noted that Tencent (00700) fell 3.7% on Wednesday to close at 236.8 yuan, with a turnover of 7.55 billion yuan, making it the most traded stock.

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commodity market

In terms of crude oil, it closed down $2.71, or 2.84%, at $92.65 a barrel; it closed down $3.08, or 3.46%, at $85.83 a barrel. U.S. crude oil inventories rose more than expected, while gasoline and refined oil inventories fell less than expected.

In the gold market, it fell 0.1% to close at $1,713.7 per ounce; it fell 0.34% to close at $1,706.7. However, UBS technical analyst Joni Teves believes that the price of gold has established a new technical support position, and the US Federal Reserve may change its aggressive interest rate hike policy next year. .

Foreign exchange market

In currency markets, it closed up 0.73% at 110.43 on Wednesday. Markets remained cautious after failing to see a Republican victory in the midterm elections on Wednesday, with attention turning to U.S. CPI data to be released on Thursday. Meanwhile, the turmoil in the cryptocurrency market has also affected sentiment.

Ending the three-game winning streak, it closed down 1.62% at 1.1353. Investors remained on edge ahead of Chancellor Hunt’s planned fiscal announcement on Nov. 17 amid signs Britain will squeeze public spending and possibly raise taxes.

It closed down 0.58% at 1.0012. The euro is under pressure as the risk of a recession in the euro zone intensifies.

Citi expects the euro zone economy to contract in 2023, entering a recession amid high inflation. Citi economists said in a report that despite ample natural gas reserves and fiscal support, the euro zone economy remains on a recessionary track amid high inflation. Real GDP in the euro area is expected to contract by 0.3% in 2023 after growing by 3.2% in 2022.

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[This article is from Yingwei Caiqing Investing.com, to read more, please log on to cn.Investing.com or download Yingwei Caiqing App]

(Editor: Li Shanwen)

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