Main indices in global stock markets mostly recorded negative dynamics.
elchi reports that in the US, the “Dow Jones” index decreased by 131.59 points or 0.26% to 51,349.92 points, the “S&P 500” index fell by 12.85 points or 0.17% to 7,670.84 points, and the “Nasdaq Composite” index dropped by 22.84 points or 0.09% to 26,797.54 points. The “NYSE Composite” decreased by 0.20% to 23,709.60 points, and Canada’s “S&P/TSX Composite” index fell by 0.08% to 35,460.27 points.
Mixed dynamics were observed in Europe. The “Euro Stoxx 50” increased by 0.30% to 6,320.26 points, and Germany’s “DAX” index rose by 0.10% to 25,399.21 points. The UK’s “FTSE 100” index decreased by 0.45% to 10,636.71 points, France’s “CAC 40” index fell by 0.53% to 8,035.87 points, and Spain’s “IBEX 35” index dropped by 0.42% to 19,517.50 points.
Mostly positive dynamics were recorded in the Asia-Pacific region. Japan’s “Nikkei 225” index increased by 1.59% to 66,522.35 points, and “TOPIX” rose by 1.52% to 4,102.54 points. China’s “CSI 300” index increased by 0.15% to 4,351.88 points, and Australia’s “S&P/ASX 200” index rose by 0.87% to 8,784.70 points. Hong Kong’s “Hang Seng” index decreased by 0.11% to 24,497.66 points.
One of the main reasons for the market dynamics was the continued high level of global bond yields. The yield on US 10-year government bonds approached its highest levels since 2007, putting pressure particularly on US and European stocks. The drop in US consumer confidence to a more than 12-year low in September also negatively impacted investor sentiment.
Meanwhile, the market’s expectation of the Fed raising rates again in October fell from approximately 70% to 50% after New York Fed President John Williams stated there was no need to rush for further interest rate hikes. While high bond yields in Europe limited indices, growth in technology stocks provided some support. In China, statements about the government providing additional support to the economy boosted stocks.