Global Market Square
The U.S. and European stock markets closed with asymmetrical results Wednesday, and U.S. Treasury note yield rose following the Federal Reserve Bank’s press conference. Wall Street ended mostly lower following Chairman Jerome Powell’s comments that informed interest rate increases might happen by 2023, or sooner than expected as the bank had declared it did not expect increases until 2024. In the Eurozone, stock markets ended higher, recording a ninth consecutive high, its best since 1999.
Several key additional indicators were reported:
- The Federal Reserve Bank increased the U.S. Gross Domestic Product forecast for 2021 to 7.0% from 6.5% in March.
- U.S. Housing Starts rose to 1.572 Million units, up from 1.517 Million last month, a 3.63% rise from last month and 50.29% from one year ago.
- Some developers have indicated that labor shortages and rising material costs affect prospective home buyers’ desire. In our opinion, the housing market will be a significant contributor to economic growth.
Eurozone Summary for June 16:
- Stoxx 600 closed at 460.05, up 1.24 points, or 0.27%.
- FTSE 100 closed at 7,184.95, up 12.47 points, or 0.17%
- Dax index closed at 15,710.57, down 18.95 points, or 0.12%.
Wall Street summary for June 16:
- The Dow Jones Industrial Average closed at 34,033.67, down 265.66 points, or 0.77%.
- The Standard & Poor’s 500 closed at 4,223.70, down 22.89 points, or 0.54%.
- The Nasdaq Composite Index closed at 14,039.68, down 33.17 points, or 0.24%.
- The Birling Capital Puerto Rico Stock Index closed at 2,607.34, up 28.31 points, or 1.10%.
- The U.S. Treasury 10-year note closed at 1.57%.
- The U.S. Treasury 2-year note closed at 0.21%.