At the global stock exchanges, carefully traded.
The stock indices in the Wall Street are slightly fallen because the investors are not sure when the US Central Bank will continue to reduce interest rates.
On Wall Street, the Dow Jones index weakened 0.2 percent last week, at 46,247 points. While S & P 500 slipped 0.3 percent, to 6,643 points, and NASDAQ 0.7 percent, on 22,484 points.
The index movement was mainly depended on new economic indicators that influenced investor expectations regarding interest rates.
Last week, he was published that the US economy in the second quarter rose 3.8 percent on an annual basis, faster than the first estimate showed.
In addition, the number of requests for assistance to the unemployed fell a week ago by 14,000, at 218,000. Lower than analysts expected.
Strong growth of the economy and the relatively stable labor market states that the American Central Bank should not rush with further reduction in interest rates.
The FED decreased interest in 0.25 percentage points about ten days ago due to labor market weaknesses, FINANCE BA. Investors hoped the Central Bank would continue to reduce the price of money by the end of the year.
But the last economic data is questioned, and it is precisely hope in sharp cutting interest, the main market driver for a long time.
“The last economic data is a little confusing and open the question for how much the Fed should reduce interest. And even whether they should be further reduced this year,” says Peter Tuz, President in Chase Investment Counsel.
Therefore, in most of the week, stock prices were under pressure.
But on Friday, stock market indices have compensated by part of previous losses because new data showed that inflation in the United States in August has not increased more sensively.
The prices increased by 0.3 percent in that month compared to the previous month. While at an annual basis increased 2.7 percent, in accordance with expectations. Thanks to that, they reinforced the speculation that the FED would soon continue to reduce interest.
And in the European stock exchanges, the stock prices have risen last week. The London FTSE index strengthened 0.7 percent, to 9,284 points. While Frankfurt DaxDax (Deutscher AktIenindex) rose 0.4 percent, 23,739 points, and the Paris CAC 0.2 percent, on 7,870 points.
