Business News Asia
Not a good day for the U.S. indices, which all closed in the red yesterday (April 5, 2022). The Fed’s statements weighed more than expected on the mood in the stock markets yesterday. The Vice-Chairman of the Federal Reserve Lael Brainard had said at a Fed event that the primary goal must be to reduce inflationary pressure. That’s why there will be several rate hikes this year, she said. But that is not enough. The massive balance sheet is also to be reduced. Not good omens for the loose monetary policy that has been driving the markets since 2019.
- The DOW closed with a minus of 0.8% or -280.70 at 34,641.18 points.
- The S&P 500 closed with a minus of 1.26% or -57.52 at 4,525.12 points.
- The NASDAQ closed down 2.26% or -328.39 at 14,204.17 points.
One of the best performers again yesterday was Twitter, which now welcomes Elon Musk to its board as the largest shareholder outside the company. Earlier in the week, it was announced that Musk had bought 9.2% of Twitter’s shares. As a result, the stock has risen nearly 30% since the beginning of the week and another 2.02% yesterday.
Weak stocks yesterday included Ford, down 5.04%, and NIO, down 5.79%. Apple also closed yesterday with a minus of 1.89%.
The negative sentiment from the U.S. has also spread to Asian markets this morning.
The NIKKEI 224 (Tokyo) started with a minus of 1.52% in trading.
The S&P/ASX 200 (Sydney) starts with a minus of 1.09%.
Taiwan Weighted (Taiwan) starts with a slight minus of 0.38%.
The KOSPI (Seoul) with a minus of 0.81%.