U.S. Markets Move Down Again; Tech Stocks Once more in Red

U.S. stocks fell in the first after the market tried to understand data of how the least jobless claims since 1969 will affect inflation. Personal spending also rose more than expected. 

The tech-heavy NASDAQ 100 underperformed other benchmarks again this week as higher Treasury yields damp the outlook for growth stocks. The S&P 500 pared declines.

  • Stoxx Europe is up by 0.01%
  • Dow Jones is down by 0.16%
  • NASDAQ is up by 0.20%

New Zealand Raises Interest Rates For The Second Time In Two Months

The Central Bank of New Zealand has raised interest rates for the second time in two months and analysts expect that policies will be tightened more quickly than previously expected to control inflation. The Monetary Policy Committee on Wednesday raised the official cash rate by a quarter percentage point to 0.75%, as expected. The Reserve Bank of New Zealand forecasts that the cash rate will be raised to 2% by the end of 2022, a year earlier than projected just three months ago.

Deutsche Boerse’s EEX To Launch Hydrogen-Index Next Year

Deutsche Boerse’s power and gas exchange EEX is planning to launch an index from 2022 to price hydrogen and is expected to help the trading of the commodity. The Bourse’s board said that hydrogen will have a huge impact on the green economy. More details on the index will be available from the end of this year. It would be the first publicly-traded index that tracks hydrogen as a commodity.

Japan To Add $22.1 Trillion Yen To Stimulus 

The Nikkei newspaper on Wednesday reported that the Japanese government is planning to add $22.1 trillion Yen to the pandemic stimulus of $36 trillion yen. The government is trying to boost the recovery with next year’s election as a motivating factor. Anyway, the government failed to spend more than 30 trillion yen it budgeted for stimulus last year and it may be hard to inject all of the new money into the economy quickly.

U.S. Jobless Claims Hit 52-Year Low

The U.S initial Initial jobless claims dropped to 199,000 last week, the lowest level since November 1969. The numbers are below the expectations of 260,000 and the previous week’s 270,000 level. And also the second-quarter GDP growth was revised up slightly to 2.1%, below the estimates for 2.2%. Analysts are expecting an interest rate hike in 2022, and the fears of a hike are fueled by these dropping jobless claims.

Supply Shortages Ease in the U.S., Continue in Europe

Measures by Bloomberg Economics have shown that supply shortages in the U.S. declined in October, even while remaining at a historically high level. This indicates that even though shortages continue, they are becoming less severe. 

However, in Europe, there is an indication that conditions are getting worse.

Iran, UAE Plan to Turn a ‘New Page’ in Relations, Minister Says

Iran pledged to begin a new chapter in its relations with the United Arab Emirates, possibly signaling a thawing of tensions in the oil-rich Persian Gulf as world powers prepare for talks to salvage the 2015 nuclear deal. In a tweet, Iranian Deputy Foreign Minister Ali Bagheri Kani also described a meeting in Dubai with UAE Presidential Adviser Anwar Gargash as “friendly and cordial.”