US stocks mixed as Biden appoints Powell for second Fed term – .

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US stocks mixed as Biden appoints Powell for second Fed term – .


Wall Street shares rose on Monday as traders reacted to news that Joe Biden had appointed Jay Powell as Federal Reserve chairman for a second term, with Lael Brainard selected as running mate.

The US S&P 500 stock index rose 0.4% early in the afternoon in New York, reaching a record high on the strength of financial and energy stocks. On the other hand, after rising at the opening, the Nasdaq Composite index, with a strong technological component, fell 0.6%.

In government debt markets, the yield on two-year treasury bills, which is sensitive to interest rate expectations, rose 0.07 percentage point to 0.578%. The benchmark 10-year Treasury bill yield also rose about 0.07 percentage point to 1.601 percent. Bond yields move in the opposite direction to their prices.

Anthony Collard, head of investments for UK and Ireland at JPMorgan Private Bank, said the prospect of a second term for Powell was “overall positive”. “His navigation of the crisis [while] maintaining growth proves to us that he has done a commendable job, ”said Collard.

Equity markets were gloomy across the Atlantic. European stocks had risen slightly during their afternoon session, but then fell. Several countries in the bloc were forced last week to reimpose pandemic restrictions.

The European Stoxx 600 stock index closed 0.1% lower on Monday, after falling 0.3% on the previous trading day.

Protests erupted in Austria, Italy and Belgium among other European countries over the weekend, after governments stepped up virus restrictions in response to a higher number of infections.

London’s FTSE 100 stock index closed 0.4% higher.

Elsewhere, Asian stock markets were mixed. Hong Kong’s Hang Seng index fell 0.4% while China’s CSI 300 index rose 0.5%. Emerging market equities as a whole were down on Monday following selling pressure last week as investors increasingly focused their attention on developed economies where interest rates are expected to rise over the last week. year to come.

A broad FTSE barometer of emerging market equities fell 0.9% in US dollars, after falling 1.4% in the past week.

In currencies, the dollar index – measuring the greenback against six other currencies – was up 0.4%. The euro was down about 0.3% against the US currency at around $ 1.12, its lowest level since the summer of last year, with traders betting the bloc’s central bank ‘would stick to ultra-low borrowing costs even as US and UK policymakers were to raise interest rates. .

The Turkish lira hit around 11.4 TL to the dollar on Monday, its lowest level on record. Last week, the country’s central bank cut interest rates by 1 percentage point to 15%. The currency has fallen more than 30 percent this year as interest rates were cut 19 percent in early September amid high inflation.

Brent crude, the benchmark for oil, rose 0.5% to $ 79.27 a barrel.

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