[서울=뉴스핌] Reporter Kim Sun-mi = The global stock market is falling on the 5th, as Jerome Powell, chairman of the Federal Reserve System (Fed), failed to appease the market.
The MSCI Global Index, which tracks stock markets in more than 50 countries around the world, is continuing the longest decline in six months, and the US S&P500 stock index temporarily negative during the year.
The pan-European index fell 0.7% at the beginning of the European stock market, and the Asian stock market closed lower.
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| New York Stock Exchange [사진=로이터 뉴스핌] |
Powell’s speech at the Wall Street Journal (WSJ) conference the day before showed he wasn’t too wary of rising government bond rates. “We expect the economy to reopen and hopefully improve the economy,” he said. “This could create some inflationary pressure.”
“The market was disappointed with Powell’s remarks,” said Henrietta Paquimang, CEO of Wells Fargo Asset Management’s investment grade bonds. It will be an aspect,” he predicted.
The market is expected to gauge whether the labor market will recover through the number of new jobs in the US non-agricultural sector for February announced today.
The US 10-year Treasury bond yield rose 6bp (1bp = 0.01% point) half an hour after Powell’s speech was released the day before, and closed at 1.564%, the highest level since mid-February last year.
Chairman Powell dismissed the possibility of accepting a super-acceptable monetary policy anytime soon, but analysts are concerned that rising government bond yields could lead to higher capital raising costs, which could lead to a fragile US economic recovery.
In the foreign exchange market, demand for the US dollar was strengthened due to the increase in government bond interest rates, and the dollar index rose to 91.734 compared to the six major currencies, the highest in three months. The dollar/yen was 108.11 yen, the highest since June 9 last year.
In the commodity market, international oil prices are soaring due to the decision to maintain production cuts by OPEC+, an agreement on production cuts. Brent oil futures from North Sea reached $68.25 per barrel, the highest since Jan. 8 last year, and are expected to rise 3% weekly.
On the other hand, the spot price of gold, which is under downward pressure on government bond yields and the dollar, has plunged below $1,700 per ounce for the first time since June of last year.