A recession shock in the financial markets .. $ 5.8 billion leaves global equities within a week

Michael Hartnett, chief investment officer at Bank of America Corp., said a “recession shock” was beginning to threaten financial markets after the broader S&P 500 index of US equities achieved its worst half-yearly performance in more than 50 years.
And the “Bloomberg” news agency quoted a report prepared by Hartnett as saying that although the Federal Reserve is expected to approve a significant increase in interest rates, and inflation expectations will fall, the Bull & Bear index of Bank of America continued to keep traders’ confidence in financial markets at its lowest level for the third week.
Bank of America said stock and bond markets were plagued by cash outflows this week, in light of investors’ fears of a global economic downturn, with high inflation and tighter monetary policy.
He added that about $ 5.8 billion from investment funds in global equities ended during the week ended June 29 last year, while little inflow of $ 500 million entered the U.S. stock market.
Stock markets are currently declining in light of investors’ tendency to dispose of risky assets, for fear of a looming economic recession, as inflation remains high despite the tightening of monetary policy by central banks.
And equities and securities around the world recorded a record decline, according to “Bloomberg” data, which dates back to 1990, as the S&P 500 index alone lost more than eight billion dollars of its value, its worst performance in more than ‘ half a century. In a related context, Wall Street’s key indices started lower yesterday with a gloomy start to the second half of the year as investors worried that economic growth would be hampered by aggressive steps taken by policymakers determined to hyperinflate to stop.
According to “Reuters”, the Dow Jones Industrial Average fell 37.66 points, or 0.12 percent, to 30,737.77 points at the opening. The Standard & Poor’s 500 Index fell 4.38 points, or 0.12 percent, to 3781.00 points, while the Nasdaq Composite fell 21.90 points, or 0.20 percent, to 11,106.83 points. has.
Wall Street ended its trading lower yesterday as the benchmark S&P 500 index recorded its biggest percentage drop in the first six months of the year since 1970, amid concerns over the war between Ukraine and Russia, rising inflation, high interest rates and a possible recession in the United States.
In Europe, equities fell yesterday as semiconductor equities led the decline following lukewarm expectations from US chipmaker Micron.
The shares of: Dutch company ASML for semiconductor equipment, French-Italian chipmaker ST Microelectronics, and German chipmaker Infineon fell with rates ranging from 3.1 percent to 4.1 percent, after Micron announced its outlook is much weaker than expected is for his business.
The European Stoxx 600 index fell 0.8 percent during trading yesterday, a day after recording the worst quarterly performance since the big drop due to the Corona pandemic in early 2020, following a gloomy session for “Wall Street “, which has fallen due to data exacerbating fears about the recession.
The mining and oil and gas sector indices each fell by about 0.3 per cent, with commodity prices falling due to concerns about demand.
Sodexo rose 2.3 percent after the French group for meal and food catering services reported good revenue in the third quarter, citing strong growth in all business sectors and geographic areas.
In Asia, the Japanese Nikkei index fell for the third consecutive session yesterday, closing at its lowest level in almost two weeks, watching the impact of Wall Street’s losses yesterday as investors worried about the economic slowdown in the world’s largest economy. The Nikkei fell 1.73 percent to 25,935.62 points, its lowest closing level since June 20, after rising 0.5 percent earlier yesterday. Over the course of the week, the index fell 2.1 percent.
The broader Topix index fell 1.38 percent to 1845.04 points, recording a weekly loss of 1.1 percent.
“Investors were worried about the future of the US economy,” said Shuichi Arissawa, general manager of investment research at Iwai Cosmo Securities. In Japan, prominent companies fell, with shares of Fast Retailing Group, which owns Uniqlo, down 4 percent, showing the biggest loss on the Nikkei. And Tokyo Electron, the chipmaker, fell 3.7 percent. Travel-related stocks underperformed, with the aviation and rail sectors losing 3.05 percent and 1.03 percent, respectively, amid a recent increase in COVID-19 cases. The real estate sector fell 0.82 percent.
In South Korea, the South Korean stock market index “Kospi” reached 2 305.42 points at the close yesterday, 27.22 points or 1.17 percent lower.
While the Korean Automated Stock Price Index “Kosdaq” reached 729.48 points, 15.96 points, or 2.14 percent, at the close.
In the Arab world, the UAE stock exchanges ended their trading lower yesterday and followed the impact of Asian equities as concerns about the slowdown in global economic growth put investor sentiment under pressure.
On Wednesday, in Portugal, the heads of the US Federal Reserve, the European Central Bank and the Bank of England met and expressed their commitment to combat inflation, regardless of the consequences of these measures.
The Dubai index fell 0.7 percent, under pressure from the decline in financial sector equities, with Emirates NBD Bank down 3 percent and Dubai Islamic 2.1 percent.
The Dubai Stock Exchange saw a volatile trading session as investors interacted with talk of recession, particularly in the United States. Fadi Riad, market analyst at Capex.com, said the market may experience more losses.
In Abu Dhabi, the index fell 0.3 percent, extending its losses for the third consecutive session, under pressure from a 3.2 percent drop in Alpha Abu Dhabi Holding, and Ghada Holding shares up 4 percent. 3 percent dropped. The Abu Dhabi index recorded a weekly rise of 1.2 percent. The UAE’s Union Coop, a supermarket chain, announced yesterday its intention to list its shares on the Dubai Financial Market on July 18.
The company said in a statement that the current shareholders will be offered ten shares for each share they own, and that the trading of shares on its own electronic platform has been suspended.
The company added that the share price will be determined on the first day of trading. The company, which has 23 branches, says on its website that it is the largest consumer cooperative in the UAE.
In Egypt, the Egyptian Stock Exchange lost 44 billion pounds during the last June sessions, bringing the market capitalization of the shares of companies listed on the stock exchange to 621.9 billion pounds, compared to 665, 9 billion pounds at the end of last May.
The main stock index, “EGX30”, fell by 9.11 percent to reach the level of 9225 points, and the index of small and medium-sized stocks “EGX70” fell by 1.33 percent, recording 1721 points, and the broader “EGX100” index rose by about 2.83 percent to end trading last month at the level of 2547 points.
In Jordan, the general stock price index listed on the Jordanian stock exchange rose 2.17 percent, ending the week’s trading at 2476.0 points.
The daily average trading volume on the Amman Stock Exchange over the past week was about 17.8 million Jordanian dinars, compared to 8.4 million Jordanian dinars the previous week, an increase of 112.9 percent, while the total weekly trading volume was about 89 , 2 million Jordanian dinars. dinars, compared to 41.9 million dinars for the previous week.
In terms of the traded shares recorded by the stock exchange in the past week, it amounted to 55.2 million shares, which was executed through 18 743 transactions.

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