Stocks across the globe fall on ECB announcement and US inflation

The Global shares market fell on Thursday and continued with the bear trend today Friday, March 11, 2022, as consumer inflation in the United States of America increased by 7.9% to hit a 40-year high. Besides the rising inflation, the stock market was also compounded by the issue of the European Central Bank (ECB) speeding up its exit from its massive stimulus program of asset purchases.

Wall Street dipped on the data of inflation and gave up some of the gains gained in the prior session’s relief rally. Similarly, the Eurozone stocks also fell with most hitting session low after the ECB surprise announcement.

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Another factor that is negatively affecting the stock market is the ongoing war in Eastern Europe after Russia invaded Ukraine. Although there have been ceasefire talks between the two warring sides, the talks seem to be making no headway and the war is taking a toll on businesses in Europe.

The co-head of investments at Thornburg Investment Management Jeff Klingelhofer weighed in on the matter saying:

“What’s the answer from central banks? They hike. Unraveling a decade of easy policy and implicit central bank puts (will) undoubtedly lead to the heightened volatility in asset markets.”

Major Stock Indexes in the US and Europe

The MSCI gauge of stocks across the world shed 0.65% on Thursday and today (Friday) has shed 4.7% showing the strong bearing trend that the stock market has assumed.

In the US, the Dow Jones Industrial Average (.DJI) on Thursday fell 323.32 points (0.97%) and continued with the drop on Friday shedding 112.18 points (0.34%). The S&P 500 (.SPX) shed 50.68 points (1.18%) on Thursday and Friday shed a further 18.36 POINTS (0.48%). The NASDAQ Composite Index (.IXIC) lost 236.67 points on Thursday (1.79%) and on Friday shed a further 125.58 points (0.95%).

In Europe, the STOXX Europe 600 Index (.STOXX) lost 1.25% on Thursday and today it has also a further 1.69%. The FTSE 100 Index has dropped by 1.27% today.