The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
It seems like it's destined to be another day of disappointment for Wall Street but a late rally helps US Down Jones and the S&P 500 to go back to green. The Nasdaq remains weaker, but was way better than the day's low.
As the USD weakened, investors were quick to act on it and this help to snapped a two days oil rout. Russia's foreign minister's comments also reignited hopes of a deal among oil producers to trim output. The energy index jumped on this news.
The battle to be the most valuable company continues as Alphabet shares tumbled 4% to US$749.38, with Apple regaining the position in terms of market capitalization. Apple rose 2% to US$96.35.
The Dow Jones industrial average .DJI ended up 183.12 points, or 1.13 percent, to 16,336.66, the S&P 500 .SPX gained 9.5 points, or 0.5 percent, to 1,912.53 and the Nasdaq Composite .IXIC dropped 12.71 points, or 0.28 percent, to 4,504.24.
Stocks' late-day rally reversed sharp losses in morning trading. U.S. data showed the economy's service sector expanded at a slower-than-expected rate, raising concerns that weakness in manufacturing was spreading to other areas of the economy.
In other economic news, ADP data showed private employers added more jobs than expected in January. The data comes ahead of the government's more comprehensive employment report on Friday.
Tepid U.S. growth, falling oil prices, and fears regarding a China-led global slowdown have combined to drive stocks down sharply since the start of the year.
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| Wall Street Update |
As the USD weakened, investors were quick to act on it and this help to snapped a two days oil rout. Russia's foreign minister's comments also reignited hopes of a deal among oil producers to trim output. The energy index jumped on this news.
The battle to be the most valuable company continues as Alphabet shares tumbled 4% to US$749.38, with Apple regaining the position in terms of market capitalization. Apple rose 2% to US$96.35.
The Dow Jones industrial average .DJI ended up 183.12 points, or 1.13 percent, to 16,336.66, the S&P 500 .SPX gained 9.5 points, or 0.5 percent, to 1,912.53 and the Nasdaq Composite .IXIC dropped 12.71 points, or 0.28 percent, to 4,504.24.
Stocks' late-day rally reversed sharp losses in morning trading. U.S. data showed the economy's service sector expanded at a slower-than-expected rate, raising concerns that weakness in manufacturing was spreading to other areas of the economy.
In other economic news, ADP data showed private employers added more jobs than expected in January. The data comes ahead of the government's more comprehensive employment report on Friday.
Tepid U.S. growth, falling oil prices, and fears regarding a China-led global slowdown have combined to drive stocks down sharply since the start of the year.
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