Markets

Share to Twitter Share to Linkedin Topline Fed officials on Thursday reiterated calls for aggressive policy to combat stubbornly high inflation—fueling expectations for bigger rate hikes amid a stock-market selloff that’s seen major indexes hit new lows for the year—and some analysts project that the losses could only deepen. Key Facts Real interest rates, which remained negative since July 2020, “have to be in positive territory and held there for a time,” Cleveland Fed president Loretta Mester told CNBC Thursday morning, lamenting that inflation remains too high and warning the Fed still has room to raise rates more: “We’re still not even in restricted territory on the funds rate.” In a speech on Thursday, St. Louis Fed president James Bullard issued a similarly hawkish call, saying it “does look like” the Fed is expecting a “fair amount of additional moves this year” to put “meaningful” downward pressure on inflation. Expectations for … [Read more...] about Stock Market Gloom ‘Worse Than Ever’ As Fed Signals It May Keep Tightening Until Recession

SEOUL  -South Korean President Yoon Suk-yeol called on Friday for more urgency in dealing with turbulent markets as the won’s fall to a 13-1/2-year low heightened fears of capital flight. He made the remarks at a meeting of economic officials as a weekly opinion poll found his approval rate fall to 24 percent, the lowest level since he took office six months ago. “We have built a stronger breakwater than in the past in terms of external soundness and already implemented market stabilizing measures, but it is time to deal with the situation with a sense of more urgency,” Yoon said at the beginning of the meeting. It appeared to be indicating imminent intervention in markets and dealers suspected the authorities of “carrying out smoothing operation” of modest intervention, but there was no talk of massive intervention on Friday. The won managed to end the day’s onshore trading 0.6 percent higher versus the dollar but suffered a 6.47 -loss for the month of September, marking the … [Read more...] about S.Korea’s Yoon calls for vigilance over markets as won has worst month in 11 years

RBI Another front-loaded hike of 50bps reflects policy urgency with heightened global negative externalities. Clearly, the fast-evolving world order and consistent repricing of Fed’s outsized hikes has tied Emerging Markets’ hands, including that of the Reserve Bank of India (RBI). This exposes the instability inherent in the classic central bank trilemma and trade-offs. The broad narrative on inflation and growth remains unchanged, even as the growth forecast has been reduced by 20bps. External sector focus and INR moves/volatility seem to play on RBI’s mind, even though it doesn’t seem to be perturbed about any external financing and repayment risks. The conscious front-loading gives the MPC some breather on shallow hikes ahead. The RBI is still far from its supposed real neutral rate of 0.8-1 percent, even as today's hike makes the ex-post forward real repo rate positive. At this point, we still think that the RBI would not go too restrictive and the terminal rate could hover … [Read more...] about RBI won’t go too restrictive; not more than 50bps hikes ahead: Madhavi Arora, lead economist of Emkay Global

Share to Twitter Share to Linkedin Topline Fueled by a drop in big technology stocks and pandemic darlings, the market tanked Thursday as investors backed off of Wednesday’s cautious optimism, with several macroeconomic indicators highlighting recession concerns and fears of more hawkish monetary policy. Key Facts The Dow Jones Industrial Average fell 1.5%, or 458 points, reversing its 540-point gain a day prior, while the tech-heavy Nasdaq fell 2.8% and the S&P 500 2.1%. Investors reacted negatively to employment data revealing a tighter-than-expected labor market, interpreting it as fuel for the Federal Reserve to pursue further interest rate hikes. Several other economic indicators further spooked the market, including surging mortgage rates, a declining U.S. economy and the British government digging into its controversial economic policy. “Labor market conditions will likely keep the Fed on track to aggressively tighten … [Read more...] about Dow Drops Over 450 Points, Markets Sink Following Flurry Of Worrisome Economic Data

Share to Twitter Share to Linkedin As the bleed-out in stocks continues, the bearish mood sweeps Wall Street. Last week, Morgan Stanley MS reiterated their earnings recession call. They predict stocks are in for another haircut because the market overshot with earnings projections. And then there’s an issue of rising real yields. Real yields are also the reason Goldman Sachs trimmed their year-end forecast for the S&P 500 from 4,300 to 3,600 and called equities “underweight.” Meanwhile, Blackrock went as far as to advise its clients to “shun most stocks.” Why are real yields so important that they scared most of Wall Street into the fetal position? From “TINA” to “TARA” There are two main asset classes that fight for a place in each portfolio: stocks and bonds. As a rule, bonds are a safer investment that gives investors a steady income with a relatively low risk. The catch is that investment-grade bonds pay out little and don’t … [Read more...] about Stock Market Enters Dangerous ‘TARA’ Regime

Share to Twitter Share to Linkedin President at CRG , A Real Estate Development and Investment Firm. A variety of unprecedented events over the last few years have impacted markets around the world. There have been growing concerns about inflation across the commercial real estate sector, but the overall economic outlook is positive. However, one element that still worries industry participants is the rise and uncertainty of interest rates. It should be no surprise that inflation has increased as a result of supply chain disruption, manufacturing slowdowns, unanticipated spikes in demand and the U.S. Federal Reserve pumping money into the economy in an attempt to alleviate these market issues that arose from events like the global pandemic. Overall, rising interest rates have been used as a tool to stifle demand, in the hopes that slowing it down will also slow price escalation. Manufacturing And Real Estate Amid Economic Uncertainty At the … [Read more...] about A CRE Executive’s Outlook On Market Optimism

The Television Tower glows at dusk next to the Protestant Berlin Cathedral with a reduced lighting to save energy due to Russia’s invasion of Ukraine in Berlin, Germany August 5, 2022. REUTERS/Lisi Niesner MILAN/FRANKFURT- In the weeks after Russia’s invasion of Ukraine on Feb. 24, Claudio Descalzi, CEO of Italian energy major Eni, embarked on a whirlwind of trips to gas suppliers in Africa. The visits included meetings with officials in Algeria in February plus talks in Angola, Egypt and Republic of Congo in March, with Descalzi often accompanied by senior Rome officials, according to company and government releases. State-controlled Eni and Italy were able to leverage existing supply relationships with those nations to secure extra gas to replace a large part of the volumes it received from its top supplier Russia. It’s a nimble shift that many European countries have been unable to perform as Vladimir Putin’s war jolts the continent into an alternate reality. Take … [Read more...] about Energy crisis sires new European order: a strong Italy and ailing Germany

When you’re buying gifts for the holiday season or another special occasion, you have no shortage of options. For one thing, ecommerce makes it easier than ever to have presents delivered from around the world. However, except for some collectibles, not many gifts have a chance of growing in value. If you’re looking for a gift with longer-term financial benefits, you might choose to give someone an investment asset like an exchange-traded fund (ETF) . Rather than representing a stake in a particular company like a stock or a specific debt instrument like a bond , an ETF is a pooled security, comprising a basket of different investments. When you give an ETF as a gift, this means that your recipient becomes an investor in a slice of the financial markets. With funds available that track almost any area of the market or type of asset you can think of—from broad stock indexes to niche segments, from commodities to bonds—there are many ETFs that you could consider giving as a … [Read more...] about How to Give an Exchange-Traded Fund (ETF) as a Gift

Children form financial habits as early as ages 7 to 9, according to the National Financial Educators Council. However, their curiosity about money and how the economy works often starts even before that. Questions about the role of money in our lives can bring a panicked expression to the faces of some parents. They’re concepts that seem too complicated to explain or that you may not be entirely sure of yourself. Here are 10 common questions children are likely to ask you about finances—and some ideas on how to answer them like a pro. Key Takeaways Younger children, still learning the idea of money as a limited resource, are more likely to ask questions about why you can’t always just get more at the bank. As kids get older and ask about the price of various items, parents can introduce the basic concept of supply and demand. Teenagers are typically ready for more advanced financial concepts, such as how stocks work and the ways that people invest. Young Kids … [Read more...] about 10 Questions That Kids Ask About Money

- A + A KUALA LUMPUR (Sept 30): Destini Bhd has been appointed as the exclusive distributor in Malaysia for a global group’s energy storage systems for residential and commercial usage, and electric vehicle (EV) chargers. The engineering solutions provider said its 70%-owned subsidiary, Destini ESS Sdn Bhd (DESS), was awarded the deal by Singapore-based Alpha ESS International Pte Ltd, a wholly-owned subsidiary of global energy storage solution service provider Alpha ESS Co Ltd. The China-based group specialises in the manufacturing of battery storage products and intelligent energy management systems for residential and commercial energy storage applications. “Under the terms of the agreement, DESS gains exclusive rights to locally distribute energy storage systems for residential and commercial application, electric vehicle charger, plus storage solutions and any other new products developed and manufactured by Alpha ESS group,” Destini said in a statement. … [Read more...] about Destini appointed as local distributor for global energy storage solution group