Global stocks recover from four-week lows

Monday, June 21, 2021

Global stocks recovered some losses after hitting a four-week low on Monday as investors continued to digest last week's surprise hawkish shift by the U.S. Federal Reserve, while the dollar stood just below a 10-week high, Reuters reports.

Shares of banks, energy firms and other companies that tend to be sensitive to the economy's fluctuations have fallen sharply since the Fed's meeting on Wednesday, when the central bank caught investors off guard by anticipating two quarter-percentage-point rate increases in 2023.

Stocks in Asia took their cue from Wall Street's falls on Friday but European shares bucked the trend, with the pan-European STOXX 600 index up by 0.2 percent by afternoon trade in London.

U.S. stock futures also moved firmly into positive territory, suggesting gains at the open on Wall Street later in the day. S&P 500 E-mini futures were up.

Britain's FTSE 100 was down by 0.1 percent, France's CAC 40 index gained by 0.3 percent and Spain's IBEX 35 fell by 0.3 percent.

Germany's DAX was up nearly half a percent, while Italy's FTSE MIB index edged up by 0.2 percent.

MSCI's All Country World Index, which tracks shares across 49 countries, was down by 0.2 percent, trimming some losses after hitting its lowest since May 24.