US stocks fell for the second day in a row, while the US dollar jumped to its highest level in two months, and the dollar reached its highest level against the euro.
US stocks fell with investors fearful of the tightening policy pursued by the US Federal Reserve and fear of an economic slowdown due to the high interest rate.
The technology sector, which led to a significant decline in the Nasdaq index, declined, with Amazon shares, consumer estimates and Nevada shares falling.
At the end of the American trading session yesterday, the Standard & Poor’s Index lost 89.50 points, or 2.12%, to close at 4,138 points, while the Nasdaq index fell 320 points, or 2.52%, while the Dow Jones fell by 1.88%.
Fears of tightening policy from the Federal Reserve also led to a decline in European shares with the rise in gas prices after the Russian company Gazprom announced the closure of the Nord Stream 1 pipeline for three days at the end of this month.
The US dollar witnessed a sharp rise, and the US dollar index jumped to the top of last July, and is now trading at 109.12, while the dollar rose against the euro to its highest level in two decades.
This week will be important for traders with the markets focused towards the central bankers meeting at the Jackson Hole symposium and US Federal Reserve Chairman Jerome Powell is expected to speak.
Also look forward to US inflation data with the release of personal consumption expenditures figures on Friday.
Today, the Manufacturing and Services PMI numbers are expected in Germany and France and we will see the damage caused by higher energy prices.
In the United Kingdom, economists’ expectations indicate a decline in the services PMI in August to 49, which is better than the previous one at 47.
The US Richmond Manufacturing Index, New Home Sales and the US Manufacturing PMI will also be released.