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On Monday, shares were mixed in Asia but US futures dropped just before the July 4 holiday in the US. However, benchmarks increased in Tokyo, Sydney, and Shanghai but dropped in Seoul and Hong Kong. The oil prices were secured after rushing on Friday. Last week was marked the 4th losing week in the last 5 for Wall Street.

Most investors worry about high inflation because there is a possibility of a recession with higher interest rates. Mizuho Bank said the most encouraging framework is a Goldilocks outcome. It would offer a major considerable slowdown to calm inflation moving at its top level in 4 decades. But it isn’t too powerful to conclude in a hard landing.

The Bank said it is a major order that is away from settled at this point. Markets are supposedly seeking comments in minutes from the Federal Reserve policy meeting (expected on Wednesday). Over the last few weeks, the economic data has confirmed that inflation stays burning up and the economy is weakening.

Inflation in Euro Countries Set the Worst Record

Moreover, the latter has increased hope on Wall Street that the Fed will ultimately slow down its push to increase rates. It was continuously measured on stocks, particularly in stiffer sectors such as technology. Most analysts aren’t expecting much of a rally for stocks though there are robust signs that inflation is calming. But the latest data hasn’t yet shown these expectations.

A report published on Friday said that inflation in the Euro-using countries had set another disagreeable record. Russian war in Ukraine and energy costs have also fueled and partly pushed higher inflation. Annual inflation in the 19 Eurozone countries recorded 8.1% in May but surged in June to 8.6% in June. The European Union statistics agency, Eurostat published the latest numbers on Friday.

The Report Pointed Out 4th Losing Week in the Last 5

The Eurostat report said inflation has shown its highest level since the record for the Euro started in 1997. On Monday, Tokyo’s Nikkei 225 JP: NIK increased 0.6% to 26,106.29. The Shanghai Composite index CN: SHCOMP marked 0.2% higher to 3,395.01. However, Australian S&P/ASX 200 AU: XJO escalated 1.1% to 6,618.10. Hang Seng Index HK: HIS dropped 0.3% to 21,781.84.

Moreover, the Kospi KR: 180721 in Seoul also dropped 0.8% to 2,286.83. On Friday, the S&P 500 SPX increased 1.1% after recovery from an early drop to close at 3,825.33. The increased stroke is a 4-day loss stroke for the benchmark index. The report still pointed to its 4th losing week in the last five. The Dow Jones Industrial Average DJIA increased 1% to 31,097.26.

The Federal Reserve Explosively Increasing Interest Rates

The tech-heavy Nasdaq COMP rose 0.9% to 11,127.85. However, the S&P 500 wrapped up its bottommost quarter in early 2020 since the beginning of the pandemic. The first half of 2022 has shown the worst in its performance similar to the first 6 months of 1970. It was in a haul market since last month. It clearly indicates an expanded drop of 20% or more from its recent high.

On Monday, the US financial markets will remain closed for Independence Day. Wall Street has shown its concerns regarding the risk of a downturn as economic growth is slowing. However, the Federal Reserve explosively increased interest rates. On Friday, the latest economic update for the manufacturing sector showed a significant slowdown in growth.