GADFLY: Why the US inflation number matters so much to world stocks
The rest of the world may havemore to fear from the current downturn in stock prices than the US
London — Wednesday’s US inflation report is at the top of the agenda for financial markets, given that the current turmoil is widely attributed to figures at the start of the month showing wage growth was accelerating faster than economists predicted. Interestingly, benchmark indices in other regions have fared worse than their US peers during the sell-off. One key measure used by technical analysts is the 200-day moving average. A move through that level may signal the reversal of a trend. And, on that basis, the rest of the world has more to fear from the current downturn in stock prices than the US. European stocks have taken a beating, with the STOXX Europe 600 down more than 4% so far this year. That’s driven the benchmark index to more than 3.5% below its 200-day moving average.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.