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The broad market index
of Wall Street has lost more than 400 points, or nearly 10% since June 8. This
is mostly due to fears that the U.S. Federal Reserve (Fed) may take aggressive
monetary steps to contract the money supply while failing in its widely
announced mission to curb inflation dynamics.
Oil prices survived above
$118.5 per barrel of the North Sea Brent benchmark amid rising demand for
crude.
Large institutional funds are generally
sceptical about possible effects of the additional production quotes by the
Organisation of the Petroleum Exporting Countries and its allies (the so-called
OPEC+).
Inflation fears are setting strong negative
sentiment, but the market is trying to rebound
The major European stock indices, including Germany's Xetra Dax and France's
CAC 40, have been trading neutral in the middle of the week gaining nearly
1.5%. The U.S. S&P 500 broad market indicator is close to March 2021 lows. Inflation fears are setting a strong negative
sentiment, but the market is trying to rebound on hopes of further positive
dynamics of the banking sector.
