Global stock markets decline amid economic concerns, possible US government shutdown
Date
12/24/2024 2:53:48 AM
(MENAFN) Global stock markets experienced a decline as investors grew increasingly worried about the economic outlook for the upcoming year and the possibility of a US government shutdown.
Recent US data failed to ease these concerns, showing a slight rise in the Federal Reserve's preferred inflation measure.
Last week, the Fed reduced US borrowing costs but indicated that fewer rate cuts would occur in 2025 than initially anticipated, as inflation continues to hover above its 2 percent target.
The personal consumption expenditures (PCE) price index increased by 2.4 percent in the year leading up to November, up from 2.3 percent in October, according to a statement from the Commerce Department.
The core PCE index, which excludes volatile food and energy prices, remained unchanged at 2.8 percent.
"The key takeaway from the report is that there wasn’t any improvement in the year-over-year readings for PCE and core-PCE inflation," said Patrick O'Hare, an analyst at Briefing.com.
He pointed out that on Wednesday, “the Fed implied with its words and guidance that further rate cuts can wait until there is more progress on inflation.”
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