Markets feeling pressure: European equity markets open lower
The drop in oil prices for the second day in a row is causing European equity markets to open at a lower price.
European equity markets
Today, the markets are feeling the pressure. This means that they are not doing so well. The drop in oil prices for the second day in a row is causing European equity markets, like London, to open at a lower price. In the UK, interest rates are rising, which is putting pressure on the Bank of England. However, Moody's, a company that looks at financial stuff, is positive about the UK economy and thinks it will recover from last year's budget. Philips, a company that makes electronics in the Netherlands, is also doing well. They have better financial results than people expected.
The Gaza Strip
Things are a bit calmer now after the worry caused by the Gaza Strip situation and rising yields across countries. Yields basically mean how much money you can make from an investment. The US 10-year Treasury yields are still above 5%, which is quite a lot, but the level of excitement is similar to what we saw in May. The FTSE 100, which is a fancy name for the stock market in the UK, is doing okay. It has some support levels, which means that if things keep going wrong, it will have some money to lean on. But the German and French markets are going down. In fact, the German market is doing so bad that it broke a line of support that it hasn't broken since March. The change in outlook for the UK by Moody's has not made a big difference in the sterling market.
US stock market
In Asia and the US, the markets are having a tough time. Growth stocks and technology stocks are being hit hard. This means that the companies who make these kinds of stocks are not doing well. The Dow and S&P 500, which are indices that show how well the US stock market is doing, closed at the bottom on Friday. There is a risk that things will keep going down because of inflation. Inflation means that prices are going up. Some specific companies are also not doing well. For example, Vistri, a UK house builder, is changing its profit targets because it is not able to make as much money as it thought.
Foxconn
China is investigating Foxconn, the company that makes iPhones for Apple, about taxes and land use. If Apple is affected by this investigation, it might not do well in the stock market. The good news is that oil prices are going down. This means that we don't need to worry as much about prices going up. Gold prices are staying the same, which is close to $2,000. Other metals like Copper are going down and might hit some support levels if they keep going down.
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