The latest reports called for a slow start for European stocks. It would seem worries surrounding China’s property sector continue to grow after China Evergrande Group and Kaisa Group Holdings officially defaulted on their dollar debt.
In fact, for the past month, investors have been juggling concerns about inflation and fears of liquidity woes spreading in China. Investors anxiously awaited the release of a key U.S. report on consumer prices to assess the risk involved in a tighter monetary policy.
They are now keeping an eye on a Federal Reserve meeting scheduled just before the holidays. According to speculation, the U.S. central bank could decide to double the pace of tapering its asset purchase program to $30 billion per month.
Where the Global Markets Sit Today
Besides inflation and China, there are a few other movements investors should be aware as the year draws to a close:
- Asian markets traded lower than expected as worries have grown over the spread of the Omicron Coronavirus variant. The biggest concern is that further tightening of restrictions will significantly hinder ongoing economic recovery.
- U.S. stocks also closed lower last week, despite having gained for three straight days, as new virus restrictions hit in the U.K. and reports of further declining jobless claims were revealed.
- Likewise, European stocks ended lower last week as a fourth wave of the pandemic hit the region and stricter restrictions were announced.
- According to Nasdaq, “The pan European Stoxx 600 ended flat with a negative bias. The German DAX dipped 0.3 percent, France’s CAC 40 index slipped 0.1 percent and the U.K.’s FTSE 100 eased 0.2 percent.”
Investors, Businesses and Consumers are Cautious
It’s safe to say investors, businesses and consumers are cautious, yet hopeful. Moving into 2022, people and companies are more ready than ever to get back to “normal”. But there are still so many concerns about new variants of COVID and how it will continue to impact the economy and its growth.
Moving into the new year, the key for business owners is to keep an eye on the market and consumer trends. What’s happening across the globe with restrictions and unemployment? How will it affect us here at home? What do consumers expect to see from their favorite brands? Speed? Convenience? Frequently ask yourself how you can adapt and improve processes to meet those needs.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of best merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.
