Representative image The Federal Reserve's determination to raise interest rates until it squashes the highest inflation in decades is darkening the outlook across Wall Street, as U.S. stocks stand on the cusp of a bear market and warnings of a recession grow louder. At issue is the so-called Fed put, or investors’ belief that the Fed will take action if stocks fall too deeply, even though it has no mandate to maintain asset prices. One oft-cited example of the phenomenon, which is named after a hedging derivative used to protect against market falls, occurred when the Fed halted a rate hiking cycle in early 2019 after a stock market tantrum. Also Read: Global stocks rebound despite unease over economy; dollar gains This time around, the Fed’s insistence that it will raise rates as high as needed to tame surging inflation has bolstered the argument that policymakers will be less sensitive to market volatility - threatening more pain for investors. read more A recent … [Read more...] about As bear market looms, battered Wall Street seeks elusive ‘Fed put’
Global equity markets rebounded after the S&P 500 pared losses that briefly took it into bear market territory, and the dollar gained on Friday, as investor unease about Federal Reserve policy tightening to curb inflation kindled fears of a recession. Shares rebounded earlier in Europe and Asia after China cut a key lending benchmark to bolster its weakening economy, helping initially to drive gains on Wall Street. China cut its prime rate for five-year loans, which influences mortgage prices, by 15 basis points in a reduction that was sharper than expected as authorities seek to cushion the impact of an economic slowdown. Also Read: Indian markets should be moving upwards next week, says IIFL’s Sanjiv Bhasin While a late-day rally stopped the S&P 500 from confirming a bear market, the gloom on Wall Street led the benchmark to fall for the seventh consecutive week, an event that has occurred only five times since 1928, according to S&P Dow Jones Indices. … [Read more...] about Global stocks rebound despite unease over economy; dollar gains
Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Domestic commodity producers soared on May 20 after the world’s largest commodity consumer China cut its key lending rates by a record quantum to stimulate the economy ravaged by the latest outbreak of the COVID-19 and reemergence of lockdowns. Shares of domestic producers such as JSW Steel , Hindustan Copper , Tata Steel , Vedanta , National Aluminum Company , SAIL , and Hindalco Industries soared 2-7 percent in the morning trade. The Chinese central bank cut the five-year prime rate by 15 basis points to 4.45 percent in a bid to stimulate economic activity that has been ravaged by the latest outbreak of the COVID-19 pandemic and the reemergence of lockdowns. Shanghai, one of the biggest industrial hubs and ports in the world, hasn't reported a single COVID-19 case recently, … [Read more...] about Metal stocks rally as China cuts key lending rates to stimulate economy
Share to Twitter Share to Linkedin London is sprucing up and getting festooned in preparation for what’s expected to be an unforgettable celebration that the country has never seen before: The Platinum Jubilee celebrating the remarkable 70-year reign of Queen Elizabeth II who, at 96 years old, has broken all records of a life dedicated to duty and to her people since solemnly taking her oath at the age of 21 upon the death of her beloved father. After seven decades of rule, surrounded by pomp, glamour, intrigue — and an intimately-chronicled dysfunctional family — the queen seems still firmly attached to her role as an anchor for the British people despite the vagaries and turmoils of life and history and her frail constitution. The longest reign in history MORE FROM FORBES Queen Elizabeth II, At 95, Celebrates 70 Years On The Throne And Prepares Transition By Cecilia Rodriguez On February 6, 1952, the young Elizabeth … [Read more...] about Queen Elizabeth’s Platinum Jubilee: Is The Queen, At 96, Fit To Party ‘As Never Before’?
- A + A (May 23): The wreckage of a US$5 trillion rout in emerging markets is starting to look like a buying opportunity to some intrepid investors. The pain points are all too obvious: Stocks have fallen below their average valuations of the past 17 years. Local-currency bond yields have soared through a range that’s held since the 2008 crisis. Spreads on dollar bonds are close to thresholds seen only during times of distress. After 15 months of capital outflows, emerging markets are at an advanced stage of pricing in the risks. For some money managers, that means it’s time to start buying again — not in a bullish outburst, but in gradual, cautious steps. Still, the risk of deeper losses remains, especially if China’s economy slows further or the Federal Reserve turns more hawkish. “We have reduced our bearishness on the emerging-market asset class,” said Paul Greer, a money manager at Fidelity International in London. “While fundamentals remain very … [Read more...] about After US$5 tril rout, emerging markets seek turnaround signal
Share to Twitter Share to Linkedin The “adults” are back in charge. They’ve given us another war without end, a commodity crisis , and a supply chain crisis. What’s next? A global recession? Markets are a total mess , with Walmart WMT tanking 10% in one trading session on May 18. The last time that happened was the stock market crash of October 1987. Inflation, thanks to unpresented money printing and Universal Basic Income test- drives during an unprecedented China-style lockdown of the U.S. economy in 2020—2021, is now eroding living standards. It’s global. The U.K. inflation print on May 18 was 9%. How transitory is this? If Europe keeps the pressure on commodities in its economic war with Russia, then the answer is – as long as Europe and Russia are sanctioning each other to smithereens. As I predicted here back in February, before the Russian siege of Mariupol, and before much of the Donbas region fell to Russian … [Read more...] about The Coming Global Recession, Helped By Europe’s ‘Green War’ With Russia
The US dollar. Fed meeting minutes are due on Wednesday (May 25). (Photo by Zahid Izzani Mohd Said/The Edge) - A + A SINGAPORE (May 23): The dollar began the week on the back foot, following its first weekly loss in nearly two months, as investors cut bets on further dollar gains from rising US rates and turned hopeful that loosening lockdowns in China can help global growth. US stock market futures bounced sharply in early Asia trade and pulled the risk-sensitive Australian and New Zealand dollars along for the ride. The Aussie was last up 0.4% at US$0.7080 and has lifted 3.8% in a week and a half. The kiwi rose 0.6% to US$0.6450, a three-week high. "It's a reasonably positive start to the week," said National Australia Bank head of foreign exchange strategy Ray Attrill. "We did have a sharp reversal of US equity market weakness in the last hour or so last Friday, so maybe there's some momentum there," he added. "The US dollar looks, for the time being, to … [Read more...] about Dollar wobbles lower as China growth hopes lift Aussie
Gold, Gold Prices Gold prices edged higher on Wednesday in the international markets as a weakening dollar countered pressure from stronger Treasury yields and an aggressive stance on inflation by the US Federal Reserve chief. A weaker dollar makes gold more attractive for buyers holding other currencies. At 9:38am, gold contracts were down 0.57 percent at Rs 49,887 for 10 gram on the Multi-Commodity Exchange ( MCX ), while silver shed 0.82 percent at Rs 60,657 a kilogram. COMEX gold trades modestly lower near $1810/oz weighed down by pause in recent slide in US dollar index following hawkish comments from Fed Chairman Jerome Powell. ETF outflows also showed continuing exodus by investors. However, supporting price are increasing growth concerns, inflation concerns and persisting Russia-Ukraine tensions. Gold may remain choppy as market players react to economic numbers and central bank comments however Fed’s tightening outlook may keep pressure on prices, said Ravindra … [Read more...] about Gold Prices Today: Yellow metal to stay range-bound amid high US yields, Jerome Powell speech
Fifty years ago this spring, one of the most influential books of the twentieth century was published. Written for the Club of Rome by Donella Meadows and colleagues at MIT, The Limits to Growth used new computer models to forecast an uncontrollable collapse in the global population and economy if prevailing patterns of environmental resource use and pollution continued. Exponential economic growth could not go on forever; at some point in the next 100 years, it would inevitably run up against Earth's finite environmental limits. A half-century later, with a climate and environmental crisis upon us, the debate triggered by Limits has returned with a vengeance. In 1972, the book came under immediate fire from economists who claimed that its authors failed to understand basic economics. If a resource becomes scarce, its price will rise, they pointed out. Other resources will then be substituted for it, and it will be used more efficiently. Far from leading to social collapse, … [Read more...] about Have we hit the limits to growth?
Share to Twitter Share to Linkedin Tech leaders are expected to stay up to date on all the latest tech concepts, but in today’s businesses, there are certain tech terms every leader needs to understand—no matter their specialty. Without a thorough grounding in the tech processes and tools modern companies require to operate, leaders can’t make the correct strategic decisions, communicate effectively with the tech professionals they work with or safely and fully serve their customers. From learning how essential tech tools really operate to understanding how to protect their assets in an increasingly digital world, expanding their tech knowledge can help any leader become better at their job. Here, 16 members of Forbes Technology Council share common technology terms and concepts many nontech people misunderstand, what they actually mean and why they’re important. 1. Compliance One business-critical term that is often misused and misunderstood by … [Read more...] about 16 Tech Terms And Concepts Every Business Leader Should Understand