Spark Global Limited reports：
Us stocks fell on Tuesday and the dollar slipped from a 16-month high as investors braced for an interest rate rise in 2022 following the confirmation of Federal Reserve chairman Jerome Powell for a second term, while European stocks fell to three-week lows.
U.S. Treasury yields weighed on major U.S. technology stocks, although bank shares extended the previous day’s gains.
The Turkish lira fell 15% to a record low as investors took fright after President Tayyip Erdogan defended recent interest rate cuts and showed little concern about rising inflation.
Volatility in the Turkish currency surged to an eight-month high.
As of 10:44 am EST (1544 GMT), the Dow Jones Industrial Average was down 0.15% at 35566.97, the STANDARD & Poor’s 500 index fell 0.37% to 4665.58 and the NASDAQ Composite index fell 1.05% to 15,688.52.
The Euro Stoxx 50 index fell 1.04%, Germany’s DAX index fell 0.86% and Britain’s FTSE 100 index rose 0.35%.
The MSCI index of Asia Pacific stocks traded outside Japan fell 0.49 per cent, while Hong Kong’s Hang Seng index fell more than 1.2 per cent.
President Joe Biden on Monday named Mr. Powell to stay on as Fed chairman, while another top pick, Lael Brainard, was named vice chairman. The news initially boosted Wall Street before markets fell back in the afternoon, with the S&P 500 and Nasdaq Composite closing well below their record highs. Powell’s second term could increase policymakers’ willingness to curb rising inflation, which also prompted investors to buy the dollar.
The dollar index, which tracks the greenback against a basket of six currencies, fell 0.03%. The euro rose 0.2 percent against the dollar, recovering slightly from a July 2020 low hit earlier in the day.
“On the one hand, US President Joe Bidena €™ ‘s confirmation of Jerome Powell as Fed chair is generally seen as more dollar positive as Powell is seen as more dovish than Lael Brainard,” unicredit strategists said. “On the other hand, current COVID-19 developments are primarily affecting the eurozone, which is another drag on the common currency.”
Treasury yields moved higher, although the two-year yield eased after hitting its highest level since early March 2020 on Monday.
“The selloff was amplified when Atlanta Fed President Bostic called for a quick taper, which confirms the hawkish bias within FOMC members,” said Steen Jakobsen, chief investment officer at Saxo Bank in SAN Antonio.
“Interest rate hike expectations have risen, with the market now pricing in nearly three rate hikes through 2022,” he added.
Market expectations for the ECB’s first rate hike have been brought forward to December 2022.
New concerns about the spread of COVID-19 have added to the pessimism. In recent meetings, riskier assets were hit by a surge in COVID-19 cases in Europe and new restrictions, dashing investors’ hopes for a rapid recovery in global consumption and growth.
Outgoing German Chancellor Angela Merkel said the latest surge was the worst the country had experienced so far, while Austria went into a new lockdown on Monday.
Euro zone purchasing managers’ indices showed an unexpected acceleration in business growth in November, but failed to boost confidence.
In commodities, spot gold fell more than 1 percent. Gold came under pressure as Mr Powell’s nomination raised expectations that the Fed would continue to scale back its support for the economy.
Oil prices rose above $80 a barrel after moves by the US and other consuming countries to release tens of millions of barrels of oil from reserves to cool the market failed to meet some expectations.
Brent crude rose 1.88% to $81.2 a barrel. Us crude rose 1.46% to $77.87 a barrel.
Reprint indicated source：Spark Global Limited information