Fed rate rise sends markets into turmoil

94
2
Fed rate rise sends markets into turmoil

Punters bet the Fed will raise rates with fears of the bank ebbing.

For the second day in a row, interest rates are rising, and the markets are being led by the more economically sensitive sectors, such as energy and industrials, according to Brian Levitt, global market strategist for Invesco, told CNBC Tuesday.

He said technology stocks are laggards, which is often the case when interest rates rise. The financial sector is facing challenges and investors seem to be looking beyond the challenges and recognizing that the U.S. economic growth continues to be resilient. The Nasdaq Composite dropped 52.76 points or 0.45 percent to 11,716 on Tuesday. The Dow Jones industrials index fell 37.83 points or 0.12 percent to 32,394. The Standard and Poor's 500 was down 6.26 points or 0.16 percent to 3,971. Foreign exchange markets on Tuesday saw a sharp fall in the U.S. dollar. The losses were across the board.

The euro went up 0.44 percent to 1.0845, up from 0.44 percent to 1.0845.

The British pound gained ground against the U.S. dollar, with the GBPUSD pair climbing 0.43 percent to 1.2339.

The Australian dollar gained ground against the U.S. dollar, with the AUDUSD pair rising sharply by 0.82 percent to 0.6704.

The New Zealand dollar gained 0.86 percent to 0.6245.

Some indices posted gains while others saw losses, but the global stock markets ended up mixed on Tuesday. One of the top performers was the top performer, rising by 1.11 percent to reach 19,784. The SSE Composite Index fell by 0.19 percent to 3,245, while in Shanghai, China, the SSE Composite Index fell by 0.19 percent to 65. In Europe, the FTSE 100 in the UK rose by 0.17 percent to 7,484. The DAX PERFORMANCE-INDEX in Germany and the CAC 40 in France increased by 0.09 percent and 0.14 percent respectively. The BEL 20 in Belgium and the Euronext 100 Index also posted small gains of 0.10 percent and 0.11 percent. The ESTX 50 PR.EUR in Europe was up 0.09 percent.

The Nikkei 225 rose by 0.15 percent to 27,518 in Japan. The KOSPI Composite Index in South Korea saw gains of 1.07 percent to reach 2,434, while the KOSPI Composite Index in South Korea saw gains of 1.07 percent. The IDX COMPOSITE in Indonesia also posted gains of 0.77 percent, while the FTSE Bursa Malaysia KLCI in Malaysia increased by 0.89 percent.

In Australia, the S&P ASX 200 rose by 1.04 percent to 7,034. On the other hand, the S in India fell by 0.07 percent to 57,613.