From Mirror: 2024-05-22 05:49:00

European stocks faced a downturn after US stocks hit record highs. UK’s FTSE 100 fell by 0.5% as inflation dropped to 2.3% in April, remaining above the Bank of England’s 2% target. Asian markets followed suit, with Japan’s Nikkei 225 declining by 0.9% and Hong Kong’s Hang Seng dropping by 0.2%.

On a positive note, Taiwan’s Taiex rose by 1.5% due to Taiwan Semiconductor Manufacturing Corp. Shares. S&P 500 and Nasdaq composite hit new highs on Tuesday, while Dow Jones inched up. Expectations of Federal Reserve rate cuts and strong US company profits boosted market sentiment.

Financial strains persist as Federal Reserve maintains high interest rates, affecting mortgages and credit card rates. The Fed is aiming to balance the economy by curbing inflation without causing a recession. Market movements this week may hinge on profit reports from companies like Nvidia and Target.

Energy prices dipped with US crude at $77.62 per barrel and Brent crude at $81.63. The US dollar strengthened against the Japanese yen to 156.42 and the euro rose to $1.0857. Expectations are high for Nvidia’s quarterly results on Wednesday, potentially impacting market trends.



Read more at Mirror: European and Asian markets dip in early trading after US stocks hit record high