Worried about China’s economy
Fed interest rate logs weigh on US stock markets
08/16/2023, 11:08 p.m
In view of the high inflation, will interest rates be raised further or not? This question drives the US stock market traders. Minutes of Fed meetings that have now been published are causing unrest. The poor economic figures from China are also creating a bad mood.
The US stock exchanges closed at a discount after the publication of the Fed’s interest rate records. Persistent concerns about the state of the Chinese economy also dampened investor sentiment. The Dow Jones Index the standard values went up 0.5 percent lower 34,765 points from trade. The tech-heavy one Nasdaq gave up 1.2 percent 13,474 points after. The broad one S&P 500 lost 0.8 percent 4404 points a.
The US Federal Reserve discussed the pros and cons of further rate hikes at its most recent interest rate meeting. That comes from the minutes of the late July meeting released in late US trade. The Fed unanimously decided to raise interest rates. But some participants had spoken the word for a break in interest rates.
Different arguments were put forward when discussing whether or not interest rate reins should be tightened further after the July meeting. Most participants saw inflation as the main risk that could require further tightening. But warning voices emphasized that potential dangers such as economic weakness and rising unemployment should be included in the risk assessment.
Meanwhile, US companies expanded production more than expected in July. Total production – industrial, utilities and mining combined – increased by 1.0 percent compared to the previous month.
You can read about how the trading day went on the Frankfurt trading floor in our stock market day.
Target convinces, Tesla loses
Persistent concerns about the situation chinese economy dampened the mood of investors. On Tuesday, China reported a number of economic figures below expert expectations, along with bad news from the real estate sector with debt problems at industry giant Country Garden2007. On Wednesday, data also showed a fall in home prices. “China is unlikely to make a significant contribution to global economic growth over the course of the year,” said Eduard Baitinger, manager at the investment group FERI.
Convinced in the retail sector Target with better-than-expected profit growth for the quarter. At times, the shares rose by more than seven percent, although the group had reduced its annual forecast. However, they then lost some of their price gains and were last listed around three percent higher. Competitor’s papers Walmart closed hardly changed. The group will present its figures on Thursday.
shares of Tesla lost more than three percent. The electric car maker has reduced prices for its premium Model S and Model X vehicles in China by more than six percent. The US-listed shares of Chinese electric car manufacturers such as Li Auto, Xpeng and Nio also fell. US listed shares of Tower Semiconductor fell almost eleven percent after Intel abandoned its plans to acquire the Israeli chip contract manufacturer.