Markets were mixed on Monday.
The S&P 500 fell 0.3 percent and the STOXX Europe 600 dipped 0.1 percent but the Nikkei 225 rose 0.1 percent.
US President Joe Biden announced on Monday he would nominate Chairman Jerome Powell to continue to lead the Federal Reserve.
UBS director of floor operations Art Cashin said “the market is happy with no disruption” while David Waddell, chief investment strategist at Waddell and Associates, said that “the drivers on today’s action is more technical, short-week, rotational, dollar strength and interest rates up a little bit”.
Wharton finance professor Jeremy Siegel meanwhile warned that inflation poses a risk for the market.
“If the Fed suddenly gets tougher, I’m not sure that the market is going to be ready for a U-turn that Jerome Powell may take if we have one more bad inflation report,” said Siegel.
In Europe, Germany’s acting Chancellor Angela Merkel said that the country was seeing a spike in COVID-19 infections and that stronger action needed to be taken to stop its spread.
The Bundesbank said in its monthly report that risks from an intensified pandemic would exist throughout the winter half-year but added: “As things stand at present, the macroeconomic effects are likely to be less severe than in previous pandemic waves.”
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