Marketmind: Keep on going By Reuters
Economy 1 hour ago (Sep 23, 2022 07:11AM ET)
(C) Reuters. Guest walk on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 22, 2022. REUTERS/Brendan McDermid
A look at the day ahead in U.S. and global markets from Alun John.
U.S. investors deserve some calm on Friday after a wild week for markets, though if their European counterparts’ experience is anything to go by, they might not have much luck.
The U.S. data calendar for the day is quiet, a relief at the end of a week in which the Federal Reserve hiked rates by 75 basis points, as expected, but jolted markets with a sobering outlook, and Japanese authorities made their first intervention in the foreign exchange market since 1998 to prop up the battered yen.
A public holiday in Japan on Friday, and radio silence so far, means traders hope there should be no more news on that front today.
But market participants waking up in the United States still have plenty to digest over breakfast from across the Atlantic.
British government bond yields surged by the most in a day in 13 years, the pound slid to a fresh 37-year trough against the dollar, and stocks hit two-month lows after UK finance minister Kwasi Kwarteng laid out a series of tax cuts in a bid to boost growth.
Meanwhile, across the channel, the euro fell to a fresh 20-year low and Germany’s DAX stocks index slid to its lowest since November 2020 after data showed a downturn in business activity across the euro zone deepened in September. (EU)
Sharp (OTC:SHCAY) interest rate rises this week in the United States, Britain, Sweden, Switzerland and Norway – among other places – are still underpinning the overall risk-off mood, but the survey showing the bloc’s economy is likely entering a recession didn’t help.
Looking to the United States, S&P and Nasdaq futures are both down over 1%, while the two-year U.S. Treasury yield rose as high as 4.2570%, levels last seen in 2007.
Best buckle up, it doesn’t feel like today is going to offer that long-needed rest.
It is quiet on the U.S. data release front today.
Marketmind: Keep on going
LONDON (Reuters) – Global government bond losses are on course for the worst year since 1949, and this year’s bond crash threatens credit events and a liquidation of the world’s…
By Jonathan Cable LONDON (Reuters) – A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering…
(Reuters) – Investors withdrew money from global bond and equity funds in the week ended September 21, with caution creeping in ahead of the U.S. Federal Reserve meeting in which…
(C) 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.