US Credit Rating : Bond prices rose as the US credit rating dropped. The stock market suffered Thursday. The dollar’s value rose to its highest level in four weeks against other major currencies.
European investments fell 1.1% after Fitch downgraded the US government’s debt capacity. UK stocks sank 1.3% before the Bank of England lifted rates later in the day. Many awaited this. Wall Street was expected to lose due to trade the day before. S&P 500 and Nasdaq futures fell 0.5 and 0.8 percentage points.
Private job data above expectations, while the U.S. government committed to pay down debt, raising long-term Treasury note yields. Investors rejoiced. Market pressure increased.
10-year and 30-year US government bond rates reached nine-month highs. The US dollar’s value against other major currencies rose to its highest level in 30 days. This was especially true once accurate private payroll statistics showed a strong U.S. labor market. The dollar’s return versus the Canadian dollar was so robust that it stayed at its strongest level in a month.
Economists discussed the Bank of England’s 0.25-point rate hike. Rates rose the most in 15 years. Investors worried that the June half-point spike might happen again, indicating that the main central banks are continuing tightening monetary policy. The Federal Reserve Board of Governors raised the federal funds rate by 0.5%. Buyers feared another price spike.
MSCI’s Asia-Pacific ex-Japan market index lost 0.4% today after plunging 2.3% yesterday. The market will stay lower. After a private research showed that China’s service sector activity increased in July, the Hang Seng index in Hong Kong and Chinese blue chips both rose 0.9% and 0.3%. This was an encouraging sign despite the economy slowing down. According to Caixin, China’s service sector expanded in July.
Morgan Stanley analysts gave China’s stock a “equal weight” rating. Earnings fell and profit margins and stock return were low. They advised you to avoid individuals before rejoining society.
Investors were eagerly anticipating Apple and Amazon’s quarterly earnings releases to find out why industry prices were so high.
The pound was slightly at $1.2680 when the Bank of England delivered its decision, its lowest level in four weeks. After the central bank slashed money supply, the pound rose. The dollar had its finest year since 2017 and made the most money due to monetary policy.
The Brazilian central bank dropped the average interest rate more than expected, surprising everyone. Even if U.S. interest rates were at their highest, developing countries were set to have a less stressful time.