19 Sept 2021
World Shares Fall as Fed Meeting Nears, Taper Timeline
The Index Today
World shares showed a decline mainly caused by fears of instability in Asian markets, mixed economic data Feds timeline for tapering asset purchase.
Three major U.S stock indexes fell lower on Friday after a broad sell-off. The Nasdaq Composite Index declined as U.S Treasury yields grew and laid pressure on market-yielding growth stocks. The dollar came to a three-week high whereas the 10-year U.S Treasury note yield briefly made it to 1.3855%.
Morgan Stanley Capital International MCSI analysis of stocks across the world revealed a shed of 0.71% while the STOXX went down approximately 2%. MCSI’s broadest indent of Asia-pacific shares outside of japan rose 0.29%.
Investors are glued to the Fed meeting scheduled for this week where they receive more information on tapering and asset purchases. The meeting may also shed light on when interest rates may be increased. Shares for Chinese property developer Evergrande dropped 30% this week as the company faces $80 million bond coupon payment coming up this week.
Investors have expressed fear that a corporate tax hike could negatively impact earnings. The news came after President Biden and his administration revealed plans to raise corporate tax from 26.5% from 21%.
The Dow Jones Industrial Average fell 166.44 points and the S&P 500 fell 40.76 points whereas the NASDAQ composite fell 137.96 points. US Crude oil saw a drop to $71.97 per barrel and gold fell 0.1% an ounce. The U.S Retail Sales report helped nudge the dollar a bit higher which remained steady at the currency’s previous three-week high.