thump for Wall Street. The Dow closed 2.41% lower at 29929.31 points, the Nasdaq fell 4.08% to 10,646.10 points, while the S&P 500 fell 3.24% at 3,667.24 points. Recession is “not inevitable”. This was stated by the US President Joe Biden To Associtaed Press, as reported by Bloomberg. Biden told the Associated Press that a recession is “not inevitable” and “we are in a stronger position than any other country in the world to beat inflation,” stressing that his optimism is linked to an unemployment rate of 3.6% and America’s strength. In the world, Joe Biden admits he is aware of Americans’ frustration with Covid and inflation. “I am very disappointed,” says the US president, describing the “strange” idea that the pandemic aid plan launched has caused inflation.
ANSA Agency
Recession is “not inevitable”. US President Joe Biden told the Associtaed Press, Bloomberg reported. (Dealing)
A sigh of relief did not last long. The Fed’s biggest pressure since 1994 and questioning of the European Central Bank’s anti-proliferation shield dumped stock markets that bounced back on Tuesday to pressure as the specter of a recession returns. The European financial centers They close in sharp decline and see Go up in smoke 233 billion.
in the ancient continent Milan is the black shirt close in 3.32% drop And then burn 21 billion. behind Frankfurtwho lost 3.31% Affected by the tensions on German government bonds, which rose by 20 basis points, to the point that they fell Split between 10-year BTPs and Bunds below the 200-point psychic quota (up to 196) and then closed at 202 points.
French bonds are also under pressure: they have risen in five years by 16 points. Above all, the markets are concerned about doubts about the actions of the European Central Bank, which are being worked on to solve many problems, including the strength of the new anti-proliferation shield and the potential conditions for the recipient countries. “They have a plan to develop a plan, but the market wants more detail,” says Willem Sels of Hsbc. “It’s good that the ECB has reacted, but nothing new,” adds Hadege Dufosse of Candriam.
Adding to the doubts about Eurotower are the concerns of the Fed, which is considered too aggressive. The historical interest rate hike of 0.75% to fight accelerating inflation is fueling fear of recession, which is now almost taken for granted in the US where opportunities are now given at 72%. The Bank of England is also adopting a “hawk” strategy, which has increased the cost of funds by a quarter point, warning that rates could flare above 11% by the end of the year. The cost of living is also driving the SNB to take action, surprisingly raising interest rates for the first time in 15 years, and adjusting the cost of money by 0.50%. Markets are inevitably watching this new pressure from central banks anxiously, fearing its effects on the economy. Indeed, the rallies threaten to stifle the recovery by pushing the global economy into recession without any certainty, other than public statements, that the battle against inflation can be won.
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