It’s as if investors are being asked to remain afloat in violent seas for what seems like an eternity.
Archiv für den Monat: August 2022
Stocks making the biggest moves premarket: Best Buy, First Solar, Twitter and more
These are the stocks posting the largest moves before the bell.
Worst is yet to come: Economist Stephen Roach says U.S. needs ‚miracle‘ to avoid recession
Stephen Roach, known for serving as Morgan Stanley Asia chair, warns the Fed’s aggressive tightening policies haven’t kicked in yet.
Fed rate hikes won’t bring down inflation as long as government spending stays high, paper says
A paper released at the same Jackson Hole, Wyoming, summit where Fed Chair Powell spoke suggests that the central bank can’t do the job itself.
Mortgage rates will fall to 4.5% in 2023? That’s the estimate from Fannie Mae. Here’s what that means for homebuyers
Fannie Mae says mortgage rates could fall to 4.5% next year. But prospective homebuyers shouldn’t use predictions as a primary guide to purchase decisions.
Stocks making the biggest moves midday: Netflix, Pinduoduo, Catalent, Bristol-Myers and more
These are the stocks posting the largest moves in midday trading.
Best Buy’s quarterly sales drop, as inflation-weary consumers pull back on spending
Best Buy also reaffirmed its guidance for the fiscal year, saying it expects softer demand for consumer electronics.
Germany August preliminary CPI 7.9% vs 7.8% y/y expected
<ul><li>Prior 7.5%</li><li>CPI 0.3% vs 0.3% m/m expected</li><li>Prior 0.9%</li><li>HICP 8.8% vs 8.8% y/y expected</li><li>Prior 8.5%</li><li>HICP 0.4% vs 0.4% m/m expected</li><li>Prior 0.8%</li></ul>
This article was written by Justin Low at www.forexlive.com.
ECB’s Knot: Frontloading of rate hikes should not be excluded
<ul><li>Swift normalisation of interest rates is an essential first phase</li><li>Must forcefully tackle persistently high inflation</li><li>Inflation will remain high for some time; markets expect peak in Q1 next year</li><li>Sees several upside risks to inflation</li></ul><p style=““ class=“text-align-justify“>This ties with the more aggressive comments from ECB policymakers since Jackson Hole over the weekend. As things stand, a 75 bps rate hike next week appears to be the most likely scenario as they are also doing their best to tee that up.</p>
This article was written by Justin Low at www.forexlive.com.
ForexLive European FX news wrap: Dollar retreats, equities bounce
<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/equities-recover-some-allure-after-post-jackson-hole-drop-20220830/“>Equities recover some allure after post-Jackson Hole drop</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/a-couple-of-reasons-for-the-softer-dollar-today-20220830/“>A couple of reasons for the softer dollar today</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/saxony-august-cpi-73-vs-72-yy-prior-20220830/“>Saxony August CPI 7.3% vs 7.2% y/y prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/bavaria-august-cpi-84-vs-80-yy-prior-20220830/“>Bavaria August CPI 8.4% vs 8.0% y/y prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/north-rhine-westphalia-august-cpi-81-vs-78-yy-prior-20220830/“>North Rhine Westphalia August CPI 8.1% vs 7.8% y/y prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/spain-august-preliminary-cpi-104-vs-109-yy-expected-20220830/“>Spain August preliminary CPI 10.4% vs 10.9% y/y expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-to-hold-20th-communist-party-congress-starting-on-16-october-20220830/“>China to hold 20th Communist Party congress starting on 16 October</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-july-mortgage-approvals-6377k-vs-6173k-expected-20220830/“>UK July mortgage approvals 63.77k vs 61.73k expected</a></li></ul><p style=““ class=“text-align-justify“>Markets:</p><ul><li>AUD leads, CHF lags on the day</li><li>European equities higher; S&P 500 futures up 0.8%</li><li>US 10-year yields down 4.7 bps to 3.063%</li><li>Gold down 0.3% to $1,732.53</li><li>WTI crude down 3.0% to $94.08</li><li>Bitcoin up 1.1% to $20,408</li></ul><p style=““ class=“text-align-justify“>With month-end trading in focus, markets are reversing some of the post-Jackson Hole moves as the dollar falls, equities climb and bond yields retreat in European trading today.</p><p style=““ class=“text-align-justify“>It could also be because the White House alluded to labour market conditions going to „cool off“ ahead of the US jobs report on Friday and we have seen how those comments affect markets previously when it comes to inflation data.</p><p style=““ class=“text-align-justify“>Either way, the theme is consistent with a retreat of the moves from Friday and yesterday. The dollar fell with EUR/USD climbing up from parity to 1.0055 before easing a little to 1.0020. Meanwhile, GBP/USD pushed to a high of 1.1760 before falling flat on the day to 1.1710 at the moment.</p><p style=““ class=“text-align-justify“>USD/JPY is looking heavy as bond yields fell, with the pair easing from 138.50 to 138.05 before keeping around 138.20 currently.</p><p style=““ class=“text-align-justify“>As equities pushed higher, commodity currencies are benefiting with AUD/USD up 0.4% to 0.6930 with the high earlier coming in at 0.6955. USD/CAD was down to a low of 1.2973 before a drop in oil prices pressured the loonie and the pair is back up to flat levels at 1.3010 on the day.</p><p style=““ class=“text-align-justify“>It looks like markets are going to get stuck in once again over the next few days as the dollar momentum has been quelled. That means we are likely to see some pushback on the gains from Friday but I would expect the greenback to still hold its ground before we get to the NFP release at the end of the week.</p>
This article was written by Justin Low at www.forexlive.com.