After Black Monday, the stock markets in Asia and Europe take a break

Actions mostly open higher in Europe start Tuesday and Asian stocks risen from the worst of their losses after the Wall Street crash in what is known as a bear market or bear market

London and Frankfurt won at the opening, but backed off a little later in the morning. Shanghai advanced while Hong Kong remained flat. Tokyo and Paris have declined.

The benchmark S&P 500 index fell 3.9% on Monday, falling 21.8% below its peak. At the heart of the sell-off is the US Federal Reserve’s effort to control inflation by raising interest rates. The Fed works hard to control prices and its main method is to raise rates, but this is a blunt instrument that could slow the economy too much and cause a recession.

Initially the Wall Street crash scared investors around the world. Australia’s S & P / ASX 200 slid 3.6% after reopening on Tuesday after a bank holiday Monday.

take advantage of the opportunities

But global markets not always at the same pace as in New Yorkand falling sharply, some risk-resistant investors they see an opportunity to take advantage of business.

France’s CAC 40 fell 0.5% in early trading to 5,995.37. The German DAX was up 0.3% to 13,469.85. The UK FTSE 100 was up 0.2% to 7,222.31. US equities also prepared for the rally, with the Dow Industrial future down 0.6%. The future on the S&P 500 was 0.7% higher.

Inflation and rate hikes, the ghost

Some economists speculate that the Fed could turn up your key rate of three quarters of a percent when it meets on Wednesday. That’s all triple the usual amount and something the Fed hasn’t done since 1994.

“Another day to digest the recent inflation data in the US and another day closer to the June FOMC meeting, and global markets, as well as us here in Asia, have shown that they don’t like where the global economy is right nowRobert Carnell, chief of Asia-Pacific regional research at ING, said in a report.

Apart from the nervousness about inflation and what the central banks are doing moderate price increases, restrictions to curb the spread of COVID-19 in China have also had an impact Asian market confidence.

The change of central banks, especially the Federal Reserve, towards higher interest rates reversed the spectacular rise in equity prices fueled by massive market support after the pandemic in early 2020.

Markets are bracing for bigger-than-usual gains, along with some disheartening signals on the economy and corporate earnings, including a historic lows preliminary reading on consumer confidence exacerbated by high fuel prices.

Investors they are reconsidering how much they are willing to pay from a wide range of stocks, from top-tier technology companies to industrial conglomerates. Sinking along with the S&P 500, the Dow Industrials fell 2.8% and the heavily tech Nasdaq Composite fell 4.7%.

Last month, the Fed signaled that the next few months are likely to see additional tax rate increases the normal amount twice. Consumer prices are at the level the highest in four decades and it increased by 8.6% in May compared to a year ago.

Associated Press