Indices rose in the European session, as the German DAX index advanced more than 43 points, and today the British FTSE index tended towards stability, while the pan-European Stoxx 600 index reached its highest level in two weeks.
In the Asian session, stock indices also advanced this morning, as the Australian ASX 200 index closed up 50 points, and the Japanese Nikkei index advanced 56 points, despite the rise in the unemployment rate in Japan for the month of July by 2.7%, to be higher than expected, which is not good for the economy. China’s Shanghai index rose 37 points.
Yesterday evening, the indices of the American session closed higher as well, as the Dow Jones Industrial Average closed up 213 points, the Standard & Poor’s 500 index rose by 27 points, and the Nasdaq Technology Index closed 114 points ahead.
The rise in global stock indices coincides with the arrival of the US dollar index to moving around the level of 104 against a basket of major currencies, as Jerome Powell said at the Jackson Hole symposium over the weekend that the Federal Reserve sees the need to continue raising interest rates to contain inflation.
In the United States, economist Mohamed El–Erian says that the housing sector has been greatly affected by the rise in interest rates and the current federal policy. Borrowing to buy real estate requires individuals and families to return loans with high interest, which burdens the American citizen to pay.
El–Erian adds that the Fed should be careful about the economic sectors that are affected by the current monetary policy, because this will affect them in the long run.
At the same time, the Fed emphasizes the strength and resilience of the US economy and its ability to overcome harsh periods, so Powell rules out a recession or any impact on the part of the economy, and this matter is really reflected in global indices and markets all over the world.
