Economics and Banking – Page 29 – Digital Finance Analytics (DFA) Blog

Falling Into The Close Of The Year!

More weakness in markets as we close the year. The realisation of higher rates and recession risk hitting earnings is hitting home as big-tech takes another hit.

So we look at the market action and consider the signals ahead.

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Crypto: Into 2023 With Adam Stokes…

I caught up with Adam Stokes, for a review of 2022 and into 2023. The Crypto community took a number of body blows in the year, most notably the failure of FTX, against the backcloth of Central Bank Digital Currency pilots and calls for increased regulation.

And how does all this play into the need to control inflation, and for sound money? Where might 2023 take us?

https://www.youtube.com/@UC_LynnVoF0RJV6BjNJW26Ig

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Muddling Through: Market Update For Week To 24th Dec 2022

Investors have dumped equities at a record pace in the days since major central banks signaled, they won’t be deterred in their fight against inflation—a fitting end to the worst year for world stocks since the global financial crisis. Equity funds were hit by outflows of almost $42 billion, the highest ever, in a week when the Federal Reserve, the European Central Bank and the Bank of Japan all sounded staunchly hawkish notes in their policy outlook for next year, squashing bets of an imminent return to the era of cheap money.

The markets drifted into a weary close ahead of the Christmas break and closed slightly higher on Friday and Treasury yields advanced as investors digested a deluge of economic data ahead of the holiday long weekend. But this capped a week fraught with worries over the Fed’s restrictive monetary policy and related recession fears, and volumes were way down, with thin trading volumes creating more exaggerated moves Thursday and Friday. On U.S. exchanges 7.75 billion shares changed hands on Friday compared with the 11.41 billion averages for the last 20 sessions.

On the political front, The U.S. House of Representatives passed the $1.7 trillion bill to fund government operations on Friday by a vote of 255-201, paving the way for President Joe Biden to sign it into law.

Investors have been jittery since last week as the Fed indicated that it remains stubbornly committed to achieving the 2 per cent inflation goal and projected rate hikes to above 5 per cent in 2023, a level not seen since 2007. The markets are on edge over what the path for Fed policy is going to be for next year as that’s going to drive the economy and corporate earnings.

CONTENT

0:00 Start
00:17 Introduction
2:00 US Macro
4:08 Latest PCE
6:35 US Markets
8:40 Gold, Oil
10:50 Europe
12:45 Japan Surprise
14:40 China and COVID
16:20 Australian Markets
19:45 Australian Macro
22:30 Crypto
23:40 Close

http://www.martinnorth.com/

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The Pint-Sized Santa Rally Is Unconvincing!

In the immediate run up to the Christmas break, on U.S. exchanges 9.81 billion shares changed hands, compared with the 11.16 billion averages for the last 20 sessions. So, we can expect to see some price action on lower volumes, and no real surprise that Wall Street’s three main stock indexes closed higher on Wednesday for their biggest daily gains so far in December with help from upbeat Nike and FedEx quarterly earnings, as well as improving consumer confidence and easing inflation expectations from investors.

Beaten-down tech stocks were snapped up as the climb in Treasury yields cooled following data showing that consumer confidence rose more than expected.

The Dow Jones Industrial Average rose 1.6%, to 33,376.48, the S&P 500 gained 1.49%, to 3,878.44 and the NASDAQ Composite added 1.54%, to 10,709.37.

The Conference Board’s consumer confidence gauge jumped to 108.3 from 101.4, beating economists’ forecast for a reading of 101.0.

Data showing a strong consumer sentiment, a key indicator of consumer spending, which drives the bulk of economic growth, eased fears about a recession, maybe….

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/