The fall of American stocks and the rise of gold: what you need to know in the morning
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Main news of foreign markets this morning.
0 American shares ended Wednesday with a fall
The S&P 500 lost 0.7%, the high-tech Nasdaq lost 0.5%, and the Dow Jones index fell 0.8%.
Market participants maintained a cautious attitude after another increase in interest rates by the Federal Reserve System by 0.25%.
Meanwhile, Fed Chairman Jerome Powell noted that the American economy is likely to fall into a mild recession.
In addition, Powell did not say when the regulator will end its rate hike campaign, which leaves uncertainty about the Fed’s future monetary policy.
The markets of the Asia-Pacific region demonstrate mixed dynamics
The broad index of Asian stocks (excluding Japan) MSCI AC Asia ex Japan Index rose by 0.5% today, China’s Shanghai Composite added 0.6%, Hong Kong’s Hang Seng increased by about 1%, Singapore’s STI was practically unchanged, and South Korea’s Kospi decreased by 0.4%.
The restrained mood of investors in Asia is also related to the fact that the Fed continued to raise interest rates, bringing them to the range of 5-5.25% — the highest level since August 2007.
Japan’s stock market is closed on Thursday due to the celebration of Constitution Day.
Shares of US regional banks continue to decline
Following the results of yesterday’s trading, the S&P Regional Banks industry index decreased by approximately 2%.
The sell-off in the shares of US regional banks continued after Bloomberg reports that another American lender, Pacific Western Bank (PacWest), is considering various strategic options for its rescue, including the sale of the bank. As a result of this news, shares of the Californian lender fell by 60% after the close of trading on Wednesday.
Shares of other regional banks also fell sharply, including Western Alliance Bancorp (-38%), Comerica (-7.3%) and Zions Bancorp (-9.1%).
Small American banks face difficulties, as the growth of interest rates reduces the value of their long-term investments, while increasing the cost of financing, notes Bloomberg.
Gold prices are once again near historical highs
During today’s trading, the spot price of gold reached $2,040 per ounce, which is only 1.5% lower than the historical high of $2,072.49.
Economic uncertainty and a weakening dollar have supported the recent rise in the price of gold.
According to analysts, fears about the banking crisis in the USA also encourage investors to be cautious about risky assets, increasing the attractiveness of gold.
Author: 
Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency
- Gold
- USA
- Shares (securities)
- Stock market
Source: Ministry of Finance
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