US stocks open in decline with Federal Reserve decision on radar

US stocks opened in declines in the first session this week, as investors await the monetary policy decision of central banks around the world – including the United States.

The Dow Jones fell 0.07%, to 35,940 points, the S&P retreated 0.11%, to 4,705 points, and the Nasdaq was down 0.22%, to 15,595 points. At the same time, the yield on 10-year Treasury notes dropped to 1.477% today, from 1.487% on Friday (10).

This week there will be the decision of the Bank of England, European Central Bank and Bank of Japan, in addition to the Federal Reserve. The Fed, for example, is expected to accelerate the pace at which it is scaling back its bond buyback program and signal that it may raise interest rates next year to halt the scale of inflation.

Consumer prices in the United States rose again in November as the cost of goods and services rose sharply amid supply constraints, leading to the biggest annual gain since 1982, which could encourage the US central bank to reduce quickly your bond purchases.

The consumer price index rose 0.8% last month, after rising 0.9% in October, the Labor Department said on Friday. In the 12 months to November, the index increased 6.8%, the biggest annual increase since June 1982, after rising 6.2% in October, on the same basis of comparison.

Economists consulted by Reuters predicted a 0.7% increase for the index.

A second Reuters poll of economists also showed that the central bank will raise interest rates from nearly zero to between 0.25% and 0.50% in the third quarter of next year, on the move followed by another rise in the fourth. quarter.

At the same time, the market remains attentive to any new information about Ômicron. At least one patient has died in the UK after contracting the coronavirus variant, Prime Minister Boris Johnson said Monday.

“So I think the idea that this is somehow a milder version of the virus is something that we need to set aside, and simply recognize the intense rate at which it spreads through the population,” he said.

Reference: CNN Brasil

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