Equity market

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’

Share to Twitter Share to Linkedin Market volatility in spades this week! On Tuesday, markets were all a-twitter (oops, can’t use that word!) over the large and unexpected rise in April’s retail sales (+0.8%). That sparked a +2.0% rally in the S&P 500. What market commentators neglected to mention was that, when adjusted for price increases, the “real” number was negative (see chart above – red line). On Tuesday, Fed Chair Powell said that they would continue to tighten financial conditions until “we see inflation coming down,” and that it might not be easy and could come at the expense of a higher unemployment rate. “You’d still have a strong labor market,” he said, “if unemployment were to move up a few ticks. I would say there are a-number-of plausible paths to have a soft, as I said, softish, landing.” Note the reference to higher unemployment and the use of the word “softish” instead of “soft” indicating that the Fed might not be able to tame … [Read more...] about Markets See Looming Recession – The Fed Sees “Softish” Landing

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The market snapped a five-week losing streak and closed 3 percent higher in the week ended May 20. Volatility remained on the higher side amid the Ukraine-Russia crisis, and fear of aggressive rate hikes by the Federal Reserve. After losing more than 11 percent in the previous five weeks, the Nifty50 closed decisively above 16,000 mark at 16,266, up nearly 500 points and formed a bullish candle on the weekly scale. The index also closed way above 5 and 10 days simple moving averages whose value placed above 16,060 levels. The index has not fallen below its March lows (15,671) and also held strongly above the 15,700 mark, which both could act as strong support levels in coming days and sustaining above 16,000 could take the index beyond 16,600 mark, experts said. "With reference to … [Read more...] about Top 10 trading ideas from experts for next 3-4 weeks as market snaps five-week losing streak

Share to Twitter Share to Linkedin Alex Konanykhin is a brave soul. He started a cryptocurrency project at the start of a war in Ukraine, decades-high inflation in the U.S. and Europe, Fed monetary tightening, and the potential for food shortages driving up commodity prices. He seems to have anticipated the meltdown of the traditional coins as his February 23 press release touts Unicoin as the “solution to the high volatility of cryptocoins.” His idea stems from a notion popularized by Warren Buffet, a famous Bitcoin BTC bear, who said that cryptocurrency has no value because it isn’t backed by anything. Cryptocurrencies are not backed by the good faith and credit of a nation, let alone the start-up founders or their venture capitalist investors. It isn’t backed by hard assets either. It’s not like Dogecoin DOGE is backed by Shiba Inu SHIB dog breeders or anything – less dogs, higher Doge. It’s literally a joke coin worth tens of billions … [Read more...] about Brave Souls: ‘Unicorn’ Crypto Project Ties Value To Equity In Emerging Growth Companies

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

IIFL Securities' Director, Sanjiv Bhasin believes that Indian markets offers great opportunities now (File photo) The Indian markets will soon bottom out and the “storm will pass in a week or 10 days”, according to Sanjiv Bhasin , director of IIFL Securities. “I think we are close to bottoming out and we may have already made the bottom at 15,700… from May 23 (Monday next week) we should be moving upwards,” said Bhasin in an interview with CNBC-TV18. He believes India “stands out in the crowd”. Also read: Market live blog on stocks that are driving the sentiment “Everything cannot be weighed against what is happening in the US and across the globe,” he said, adding that the stand-off between the country and Russia is hurting the former the most. Close “In this whole juggernaut of up and down volatility, I think Indian equities are still offering the best returns and opportunity to enter,” Bhasin said. In Asia, he believes the country and … [Read more...] about Indian markets should be moving upwards next week: IIFL’s Sanjiv Bhasin

- 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

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

PETALING JAYA: Bursa Malaysia is expected to see cautious trading this week due to increasing market volatility, says Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng. He reckoned that the FBM KLCI is likely to move sideways with an upside bias of between 1,545 and 1,565, with immediate resistance at 1,570 and support at 1,540. “We are cautiously optimistic about the local market although there’s improvement in the regional market sentiment as profit-taking is likely to set in,” he told Bernama. As uncertainties continue to dictate sentiment, the index is expected to remain in consolidation mode. For the holiday-shortened week just-ended, the local bourse was mixed amid the steady performance of regional markets and a decline on Wall Street on heightened concerns over the impact of persistently high inflation. On a weekly basis, the FBM KLCI rose 4.71 points to end last week at 1,549.12 from 1,544.41 in the previous week. On the index board, the … [Read more...] about Bursa to trade cautiously this week

- A + A SHANGHAI/BEIJING (May 22): Shanghai reopened a small part of the world's longest subway system on Sunday, after some lines had been closed for almost two months, as the city paves the way for a more complete lifting of its painful Covid-19 lockdown next week. With most residents not allowed to leave their homes and restrictions tightening in parts of China's most populous city, commuters early on Sunday needed strong reasons to travel. Shanghai's lockdown and curbs in other cities have battered consumption, industrial output and other sectors of the Chinese economy in recent months, prompting pledges of support from policymakers. Many who ventured out in the commercial hub wore blue protective gowns and face shields. Inside the carriages, passengers were seen keeping some empty seats between themselves. Crowds were small. Xu Jihua, a migrant construction worker, arrived at a subway stop before it opened at 7 a.m., hoping to get to a rail station, then … [Read more...] about Shanghai reopens some public transport, still on high Covid alert