8/28/2023 0 Comments Global city price ranking“I’m sure everyone will be revising up their expectations on the back of it and wondering just how much longer this labour market resilience can last. “If a rate hike this month wasn’t already nailed on, it probably is now,” said Craig Erlam, a senior market analyst at the financial trading firm Oanda. The day of selling pressure in financial markets came after the US Federal Reserve signalled on Wednesday that “almost all” of its policymakers believed further rate hikes would be appropriate in response to “unacceptably high” inflation.įigures published on Thursday showed continued strength in the US jobs market in June, which economists said could add to inflationary pressures in the world’s largest economy. Mining giant Glencore was the top faller on the FTSE 100, with a drop of 5.5%, followed by retail chain Next, copper producer Antofagasta and gambling group Flutter, on a day when just three companies gained in value – Severn Trent, Tesco, and United Utilities. Reflecting the prospect of higher central bank interest rates, US government bond yields rose by a similar amount to just over 5%, while borrowing costs also rose across the EU. The yield, or interest rate, on two-year UK government bonds rose by more than 0.1 of a percentage point to about 5.5%, the highest level since 2007. UK government borrowing costs rose further, extending an increase seen in recent weeks amid concern that the Bank of England may need to engineer the conditions for a recession in order to squeeze high inflation out of the British economy.
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