Markets are caught between earnings optimism and inflation pessimism
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany. File photo: REUTERS
Markets awaited the European Central Bank’s meeting later in the morning, with the US Federal Reserve and Bank of England meetings next week also a focus against the backdrop of inflationary pressures from bottlenecks in global supply chains. The effect of bottlenecks on sectors such as cars was further highlighted on Thursday by Volkswagen, its shares falling 2.4% after the German car giant cut its outlook for deliveries as a shortage of computer chips led to lower-than-expected operating profit in the third quarter.
Brent fell 1% to $83.78 a barrel, off Monday’s seven-year high of $86.70. US crude fetched $81.80 a barrel, down 1% and off a seven-year high of $85.41 hit on Monday. The ECB is expected to keep policy unchanged and push back against growing expectations for an interest rate hike in 2022, even though it may admit that inflation will be higher than projected.Japan’s Nikkei fell 0.9%, while mainland Chinese shares slipped 0.7%.
The Bank of Canada ended its quantitative easing sooner than expected and signalled on Wednesday that it could hike interest rates earlier than previously thought, as soon as April 2022.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WHO clears Chinese HPV vaccine in global fight against cervical cancerApproval means international organisations including the vaccine alliance Gavi and other UN agencies can buy the shot for distribution in emerging markets
Read more »
WHO clears Chinese HPV vaccine in global fight against cervical cancerApproval means international organisations including the vaccine alliance Gavi and other UN agencies can buy the shot for distribution in emerging markets
Read more »
Global stocks run out of steam on China worriesFlare up in US-China tensions and Beijing’s plans tighten internet registration rules for younger users douse rally
Read more »
A new vision for global cooperation - The Mail & GuardianA new vision for global cooperation - Realising the UN secretary general’s agenda for more inclusive and effective multilateralism requires an orchestrated strategy
Read more »
JSE to contend with weaker Asian markets on Thursday amid inflation jittersSurprise moves by global central banks are shining a spotlight on inflation fears, while SA is grappling with stage 4 load-shedding
Read more »
PETER BRUCE: Tread lightly around our banks, they’re fragileThe last thing SA needed right now was an angry attack on the Reserve Bank from inside the sector
Read more »