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Stock Market News: Dow Closes Higher
The broader market was mixed.
Last Updated:
April 16, 2024 at 7:40 PM EDT
13 days ago
European and Asia Stocks Fall Amid Uncertainty From Middle East
Stock markets in Asia and Europe fell on Tuesday on concerns that growing geopolitical worries could lead to higher oil prices and faster inflation, keeping interest rates higher.
“The ongoing uncertainty has left its mark on stocks across the globe,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “The possibility of higher-for-longer interest rates has sent Treasury yields higher, and further volatility can’t be ruled out.
Japan’s Nikkei index slumped 1.9%, while the Hang Seng in Hong Kong retreated 2.1%. Germany’s DAX index fell 1.4%, and the U.K.’s FTSE 100 declined 1.5%.
The moves followed declines in U.S. stocks Monday and Friday. Iran’s attack on Israel over the weekend, which ultimately caused little damage, was initially met with relief early Monday. But the focus returning to the outlook for Fed rates pulled prices back down again.
“Persisting inflation forces raise the risk that rates will need to stay higher for longer than expected, which could in turn weigh on economic activity and equity valuations,” said strategists at J.P. Morgan led by Marko Kolanovic.