The Fed announcement also paints European stock exchanges green

by time news

Ongoing reporting from the world’s leading markets: important updates, prominent stocks, bonds and analyst updates

Nikkei 225 Shanghai Hang Seng FTSE 100 DAX 40 CAC 40 Dow Jones SS&P 500P 500 NASDAQ 100

Join the regular updates on the Telegram channel of the capital market section of Calcalist

11:30 – Trading on European stock markets is rising sharply this morning, following the sharp rises recorded last night in trading in New York. In the background, the Federal Reserve announced a 0.5% interest rate hike. The British Potsy index is up 1.3%, the German Dax index is up 1.9% and the French Kak index is up 2%. Trading on the leading stock exchanges in Asia closed on a mixed trend – Shanghai climbed 0.7% and Hong Kong weakened 0.4%. There was no trade in Japan and South Korea due to a holiday.

10:45 – Uber, the shipping and travel sharing company, reported a $ 5.9 billion loss in the first quarter of the year, mainly due to its holdings in other companies. According to the company’s announcement, most of the loss is due to a decline in the value of its investments in other companies, including two giant travel partners in Asia – Didi the Chinese and Grub from Southeast Asia. The shares of these two companies have fallen since they were issued last year in New York. However, the company’s CEO praised the recovery from the plague consequences. “Our results demonstrate the great progress we have made along the plague and the power of the platform that strengthens our performance,” said CEO Dara Kosrashahi.

The company also reported that the number of trips they made increased by 18% in the three months to the end of March compared to the same period last year. In practice, this was 1.7 billion trips. That was the reason for the 136% jump in revenue to $ 6.9 billion. However, the loss expanded to $ 5.9 billion from $ 108 million last year, due to a $ 5.6 billion decrease in holdings in other companies, including Didi.

Meanwhile, trading on the Southeast Asian stock exchanges moved in a mixed trend, with Shanghai climbing 0.7% and Hang Seng weakening 0.2%

9:00 – Asian stocks traded higher today (Thursday) after rising green last night on Wall Street and amid a US Federal Reserve announcement of a 0.5% raise in interest rates. Fears of stock shortages The MSCI index for the Asia-Pacific region, but excluding Japan, is up 0.9%. The stock exchanges in Japan and South Korea are closed today due to a holiday.

Marcella Chao, a strategist at JPMorgan’s asset management division in Hong Kong, said the Fed’s rate hike met expectations, reassuring investors who feared a more aggressive move. “Given that the Asian market has more certainty now, I think it will probably cause the market to crack rally for a while,” she told Reuters.

In Hong Kong, the Hang Seng Index is up 0.4%. The Australian S & P / ASX 200 also recorded stable performance with an increase of 0.6%. In China, on the other hand, the CSI300 index opened down 0.16% when it opened after three holidays. “There are still corona cases in Shanghai and other cities, so there is potential for further declines in consumer and investor sentiment,” Chao added.

In the currency and commodity market – the dollar weakened after the Fed’s decision. US WTI crude rose 0.4% to $ 108.2 a barrel, while Brent crude rose 0.36% to $ 110.54 after the EU’s plan to phase out oil purchases from Russia gradually unveiled.

Last night, Wall Street ended a dramatic trading day with sharp rises. For most of the day, the indices shuffled, and they continued to do so even after the Fed announced – which, as expected, raised the interest rate by 0.5%. However, Fed Chairman Jerome Powell’s remarks at the press conference (see previous updates) colored the indices bright green. The Dow Jones jumped 2.8%, S&P jumped 3%, and Nasdaq jumped 3.2%.

As expected, the Federal Reserve last night raised the US interest rate by 0.5% and announced that it will begin in June reducing its balance sheet, which stands at $ 8.9 trillion.

You may also like

Leave a Comment