Hong Kong, 10 January 2022 (TDI): With the Omicron variant of the COVID-19 virus spreading swiftly across the globe, energy and fuel prices saw a massive surge. These compounding problems are made worse by the rising inflation in the United States and China.
Fewer new jobs were posted and the average wage rate went up. A negative performance on Wall Street indicates that the feds are fighting an uphill battle with inflation. The less than stellar postings on non-farm payrolls which puts unemployment at 3.9% also negatively added to this.
The feds are now faced with having to adjust prices in order to stabilize prices while also making sure there aren’t any negative long-term effects on the economy. There are strong indications that the bank is ready to start raising interest rates, from the extreme lows from March.
Some experts predict there will be three hikes this year alone. Lending costs are set to take a hit as there are indications that officials are looking into reducing their bond holdings. The yield on 10-year treasuries also witnessed a massive surge in almost a year which indicates a disruption in future interest rates.
Dianna Mousin of AMP Capital, Australia said that inflation could cause further disruptions in the market. The three indexes of Wallstreet ended in the negative while NASDAQ was the worst hit.
Honk Kong on the other hand, along with mainland territories of China and Shanghai all performed well. China’s securities regulator also added that they were looking to stabilize the market so as to prevent any major fluctuations. Manila, Jakarta, and Singapore all performed well while Sydney and Seoul observed dips.
Non-farm Payrolls
Non-farm payrolls measure the number of workers in the United States from all industries and classifications except for farmworkers, individuals working for the government, nonprofit employees, and proprietors.
