–
Most global stocks fell, while major stock exchanges were subject to more violent fluctuations in light of continued intervention by central banks in an effort to curb inflation and rescue affected currencies.
While the Bank of Japan announced foreign exchange intervention to bail out the yen, the UK government sought to revive the UK economy after historic tax cuts.
The yuan is falling
Despite the unprecedented support granted by the People’s Bank of China to the yuan, the support did not stop the decline of the Chinese currency, which fell, dragging the Chinese stock market with it.
Chinese shares fell during trading on Monday, with the yuan sliding close to its lowest level since early 2008.
Urgent: the pound collapses towards parity with the dollar
fall of the shares
On the other hand, the Shanghai Composite index fell 1.20% to 3051 points and the Shenzhen Composite fell 0.75% to 1949 points, while the CSI 300 index fell 0.75% to 3836 points.
Coupled with the decline in stocks, the greenback rose 0.42% against its Chinese counterpart to 7.1584 yuan, taking the yuan to its lowest levels in nearly 15 years.
Central Chinese decision
Last week, the People’s Bank of China decided to make the highest hike in the benchmark rate of the yuan, which is the highest ever for the Chinese currency, as China has expanded its defense. of its currency by setting its reference rate for the yuan.
The People’s Bank of China set the increase at 6.9116 per dollar, 598 points higher than the average estimate in a Bloomberg survey of analysts and traders.
The fall of the London Stock Exchange (LON: LSEG)
UK stocks fell during trading on Monday, with the pound hitting a new record high after Liz Trust announced it would implement tax cuts and provide investment incentives to stimulate growth.
Last week, the Bank of England raised rates from 0.5% to 2.25% in an effort to reduce inflation which hit a 40-year high of 9.9%.
The British pound fell 1.35% against the US currency to $ 1.0712, after falling today to $ 1.0382, the lowest ever, approaching parity.
Urgent: oil drops below 80 … Will Saudi Arabia intervene?
wholesale withdrawals
The broader Euro Stoxx 600 composite index fell 1.1%, or 4.5 points, to 386 points, and the IBEX 35 fell 1.3%, or 95 points.
The UK FTSE 100 index fell more than 1%, or 72 points, the German DAX index fell 0.6%, or the equivalent of 70 points, and the French CAC 40 index fell by more than 0.65%, or the equivalent of 40 points.
Historic fall
Coinciding with the rise in the dollar index, the euro has fallen to its lowest point in over 20 years and its lowest ever, as it is trading at levels of 0.964 euros per dollar, below par. , down 0.46%.
While the pound fell to its lowest level in more than 38 years, as low as 1.0648, down 1.8% during these trading times on Monday.
Urgent: The Fed is terrorizing the markets. We will lose jobs
dollar explosion
And the major dollar index launched against a basket of currencies at 114.53 points earlier, while today it recorded its lowest level at 112.94 points.
New statements by the Federal Reserve chairman in Atlanta sparked a storm in the markets regarding the Fed’s continued hike in interest rates to curb inflation.
Statements by Rafael Bostik, president of the Federal Reserve Bank of Atlanta, concluded that the Fed believes the US economy will not fall into recession even as the pain increases and some people lose their jobs.
Bostick believes that the Fed will succeed in lowering interest rates and that the markets will absorb the higher interest rates until the target is reached.
–
