Market recession

Share to Twitter Share to Linkedin Topline The stock market moved higher on Monday despite disappointing economic data out of China leading to rising concerns about a global recession and a drop in oil prices; meanwhile, investors are looking ahead to a big week of retail earnings. Key Facts Stocks rose after four straight weeks of gains: The Dow Jones Industrial Average was up 0.5%, nearly 200 points, while the S&P 500 gained 0.4% and the tech-heavy Nasdaq Composite 0.6%. Markets were initially lower after weak economic data from China overnight, with the country’s consumer and factory data coming in well below expectations, while China’s central bank also unexpectedly slashed interest rates amid a slowing economy. As China’s real estate slump and Covid lockdowns continue to weigh on economic growth, investors are growing concerned about what that could mean for the global economy, reigniting recession fears. Oil prices tanked … [Read more...] about Dow Jumps Nearly 200 Points Despite ‘Underwhelming’ Data From China Sparking Global Recession Fears

Jindal Steel & Power Aluminium manufacturers in India may be staring at uncertain times going ahead as global prices continue to soften even as global manufacturers cut supplies amid escalating costs. State-run National Aluminium Company (NALCO) reported a sequential decline in topline and operational performance in the first quarter of 2022-23 after the market hours on August 8. While typically June quarter is weak for the sector, there are signs that the global weakness is weighing on the country’s aluminium manufacturers. The outlook of the aluminium players looks way grimmer given the global trend and local players being highly sensitive to the London Metal Exchange (LME) prices are not expected to be unscathed. A report from Morgan Stanley on the industry early in July suggested that eroding margins of aluminium players due to falling commodity prices and rising smelter cost curve raise the risk of further capacity curtailment across the industry- a trend which … [Read more...] about Aluminium manufacturers brace for uncertainty as global majors cut supplies amid escalating fuel cost

Share to Twitter Share to Linkedin Inflation is up 8.5% since this time last year according to this morning’s CPI report . Economists expected the CPI to increase by 8.7% . Continued high inflation is lowering real earnings and undermining consumer confidence . The Federal Reserve has the biggest role to play in combatting high inflation, but better economic policies from President Biden and Congress would help. Inflation is fundamentally a problem of too much money chasing too few goods. The Federal Reserve controls the money supply, so it is ultimately responsible for the long-term path of inflation. Right now the economy is sending the Fed mixed signals: The latest jobs report shows the economy created 528,000 new jobs in July, but real GDP declined the last two quarters, which typically signals a recession. Labor productivity also fell each of the past two quarters, which is another sign of slower economic growth. The declines in real GDP … [Read more...] about Inflation Still High And Biden’s Policies Are Not Helping