Currency traders were looking for a balance between Omicron worries and central banks' concerns about inflation.
Getty ImagesThe world’s central banks are in control, so it shouldn’t be a surprise that the stock market is slipping Monday—especially with all major central banks scheduled to hold crucial policy-setting meetings this week.
The Dow Jones Industrial Average has dropped 287 points, or 0.8%, while the S&P 500 has declined 0.5%, and the Nasdaq Composite has fallen 0.6%.
Europe’s Stoxx 600 index, which began the day higher, was down 0.3%, while Japan’s Nikkei 225 gained 0.7% and the Shanghai Composite index advanced 0.4%.
Investors expect the U.S. Federal Reserve to indicate this week that it might phase out its bond-buying program at a faster pace than expected, which in turn could mean an earlier rise in key interest rates next year. Economists at Bank of America to increase the reduction in its bond buying to $20 billion in U.S. Treasurys and $10 billion in mortgage-backed securities, while the dots should show two rare hikes in 2022. “The holidays are here, and the Fed is set to give the gift of a faster taper at the December FOMC meeting,” writes BofA’s Alex Lin.
Some 20 central banks meet this week, however, and it’s less clear what they will do. The Bank of England wants to raise interest rates, but may be forced to delay due to the weakness of the U.K. economy or the impact of the Omicron coronavirus variant. The ECB likely won’t make too many changes, however, and the Bank of Japan probably won’t make any. “We may see some tweaks from the ECB, but the Bank of Japan has been dovish for decades and sees no reason to move from that posture,” writes NatAlliance Securities’ Andrew Brenner. “The BOE, who had looked to be the most Hawkish, has their hands tied due to soaring Covid and lockdowns. Expect to see some of the smaller Central banks raise rates.”
While the market first appeared unworried, signs of concern have emerged. The 10-year bond yield has slipped 0.051 percentage point to 1.438% Monday, despite inflation that is more than four times that amount, a sign that longer-term growth is becoming a concern. ” …Wednesday represents a meaningful event-risk insofar as Powell is tasked with follow-through on his hawkish pivot while simultaneously reassuring the market that the Fed will avoid overtightening monetary policy and risking a recession,” writes BMO’s Ian Lyngen.
The U.S. dollar firmed up against most currencies, up 0.45% against the euro and 0.2% against the British pound, as currency traders were looking for a balance between Omicron worries and central banks’ concerns about inflation. The Turkish lira was down 2% after ratings agency S&P warned it could downgrade Turkey’s B+ debt rating, due to the central bank lowering rates even as inflation is soaring at an annual 25-to-30%.
Here are seven stocks on the move Monday:
Bristol Myers Squibb (ticker: BMY) had risen 2.3% after announcing a dividend increase and raising the number of shares it would repurchase.
Rivian Automotive (RIVN) has gained 4.4% after winning MotorTrend’s Truck of the Year award.
Coca-Cola (KO) has advanced 2% after getting raised to Overweight from Neutral at JPMorgan.
Apple (AAPL) has risen 0.5% after being reiterated as a top pick for 2022 at JPMorgan.
Pfizer (PFE) has gained 3.1% after being upgraded to Buy from Neutral at UBS and announcing the acquisition of Arena Pharmaceuticals (ARNA) for $6.7 billion. Arena stock has surged 84%.
Daimler Truck (DGT.Germany), the commercial-vehicle unit spun off Friday by Mercedes maker Daimler , (DAI.Germany), was up more than 9% in Frankfurt, and is now up more than 16% on last week’s opening price.
Telecom Italia (TIT.Italy) was up 4% on a La Stampa report that private equity group KKR might proceed with its bid for the group even if it isn’t allowed a due diligence operation on the company.
Write to Pierre Briançon at pierre.briancon@dowjones.com
"stock" - Google News
December 13, 2021 at 10:58PM
https://ift.tt/3e2PCnP
Stock Market Today: Dow Slides, Harley-Davidson Jumps, Rivian Rises - Barron's
"stock" - Google News
https://ift.tt/37YwtPr
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Stock Market Today: Dow Slides, Harley-Davidson Jumps, Rivian Rises - Barron's"
Post a Comment