The first decline in global shares in three days occurred as a result of remarks made by two Federal Reserve officials who injected a note of caution about the outlook for U.S. interest rates, which hurt stocks, commodities, and other risky assets.
Raphael Bostic, president of the Atlanta Fed, stated that neither this year nor next would see any rate reductions. Raphael Bostic and Mary Daly predicted that the Fed would raise (interest) rates to above 5% and keep them there for a while, according to a note from Commerzbank.
Following a six-month high, copper futures on the London Metal Exchange declined 0.5% to $8,813 per tonne, while zinc and lead also experienced declines.
Oil recovered some of its earlier losses, but there was continued worry that China’s return to more normal activity might not translate.
Brent crude futures were last up 0.4% to $80.00 a barrel. The oil price is about 2.3% below where it was a year ago and 45% below the highs around $139 after Russia invaded Ukraine last February.