Fed Chair Powell gave an address overnight which set the markets running higher. The FED will lift rates further but perhaps more slowly. The markets liked that with the Dow moving into bull territory.
And in Australia, ANZ has up forecast future rates here, higher for longer.
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The latest edition of our finance and property news digest with a distinctively Australian flavour.
In another wild week, where FED speak on one hand, and hopium on the other drove markets all over the show, the Dow ended higher on Friday as investors weighed up further hawkish remarks from Federal Reserve officials, and the latest wave of quarterly results from retailers. Looking to the shortened trading week ahead, the Fed’s minutes from its October meeting will garner investor attention for clues on the central bank’s thinking on monetary policy.
Chief Hawk, St. Louis Fed President Bullard said this week that “Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation,” in an analysis by the St. Louis Fed that debated the appropriate rate regime for the central bank after six increases since March.
CONTENTS 0:00 Introduction 0:40 US Monetary Policy
4:15 US Markets
6:00 Oil 12:22 Gold 15:20 Europe and UK
18:00 ECB Monetary Policy
21:10 Asia 25:02 Australia
27:30 Crypto Winter 28:10 Close
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest edition of our finance and property news digest with a distinctively Australian flavour.
In another wild week, where FED speak on one hand, and hopium on the other drove markets all over the show, the Dow ended higher on Friday as investors weighed up further hawkish remarks from Federal Reserve officials, and the latest wave of quarterly results from retailers. Looking to the shortened trading week ahead, the Fed’s minutes from its October meeting will garner investor attention for clues on the central bank’s thinking on monetary policy.
Chief Hawk, St. Louis Fed President Bullard said this week that “Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation,” in an analysis by the St. Louis Fed that debated the appropriate rate regime for the central bank after six increases since March.
CONTENTS 0:00 Introduction 0:40 US Monetary Policy
4:15 US Markets
6:00 Oil 12:22 Gold 15:20 Europe and UK
18:00 ECB Monetary Policy
21:10 Asia 25:02 Australia
27:30 Crypto Winter 28:10 Close
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest US sales data and GDPNow data signals the potential for higher rates, with some now talking about 5%, as Fed officials talk up more rises in the months ahead.
Results from retail were weaker, and some high-tech also, but markets are beginning to think about higher rates again, after the Fed continues to battle inflation. Mary Daly says a pause is off the table.
As a result, the markets had another down day.
Today’s post is brought to you by Ribbon Property Consultants.
Monday ended up a down day on Wall Street ‘s main indexes ended lower on Monday, as investors digested comments from U.S. Federal Reserve officials about plans for interest rate hikes.
Losses accelerated toward the end of the up-and-down session, with focus turning to Tuesday’s producer price index report and markets highly sensitive to inflation data. real estate and discretionary sectors leading broad declines.
The Fed Outings included Christopher Waller on Sunday who said the Fed may consider slowing the pace of increases at its next meeting but that should not be seen as a “softening” in its commitment to lower inflation. Monetary policy tightening “isn’t ending in the next meeting or two”, and Fed Vice Chair Lael Brainard who signalled that the central bank would likely soon slow its interest rates hikes but added that there still was “additional work to do on raising rates.”
“There is still a sensitivity to Fed speak… One was a little hawkish, one was a little dovish,” said Eric Kuby, chief investment officer at North Star Investment Management Corp.
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Global stocks rallied on Friday for a second day on hopes cooler U.S. inflation would lead to less aggressive interest rate hikes by the Federal Reserve, an outlook that pushed the dollar to its biggest two-day drop in 13 years.
On Wall Street, stocks rose to add to the prior day’s biggest daily percentage gains for the S&P 500 and Nasdaq in more than 2-1/2 years after year-over-year inflation in October fell below 8% for the first time in eight months.
“We got a potential view that the Fed may not need to get as horrible as we thought over the last couple of weeks,” Marvin Loh, senior global macro strategist at State Street in Boston, said about the market’s exuberance. “Risk could be stabilizing here.” The Fed has no choice but to press on, but if inflation is no longer rising, that indicates the end of more extensive tightening may be near, Loh said.
The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.92% and the Nasdaq Composite advanced 1.88%. Energy stocks rose more than 3%, buoyed by rising oil prices as China eased some of its Covid-19 restrictions, stoking hopes for a jump in demand.
The banks rose, with ANZ up 1.48%, CBA up 1.7%, NAB up 1.15% and Westpac up 1.99%. Macquarie was up 5.6%. So old world financials did well.
Where as in Crypto Pain land. Sam Bankman-Fried’s digital-asset empire filed for Chapter 11 bankruptcy, capping the downfall of one of crypto’s wealthiest and most influential moguls and his collection of high-flying ventures including exchanges and a massive trading operation.
At his peak, crypto mogul Sam Bankman-Fried was worth $26 billion. At the start of this week, he still had $16 billion. Following the collapse of his crypto exchange FTX and his Alameda Research trading house, his assets in the Bahamas have been frozen by the authorities, he’s being investigated by the US Securities and Exchange Commission for potential violations of securities rules, and regulators in Cyprus are poised to suspend his license to operate in Europe. By Thursday, the Bloomberg Billionaires Index was valuing FTX’s US business at $1, down from $8 billion in January. That’s not a typo. One dollar.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Hope Springs Eternal (Minus Crypto) For Now... [Podcast]
Global stocks rallied on Friday for a second day on hopes cooler U.S. inflation would lead to less aggressive interest rate hikes by the Federal Reserve, an outlook that pushed the dollar to its biggest two-day drop in 13 years.
On Wall Street, stocks rose to add to the prior day’s biggest daily percentage gains for the S&P 500 and Nasdaq in more than 2-1/2 years after year-over-year inflation in October fell below 8% for the first time in eight months.
“We got a potential view that the Fed may not need to get as horrible as we thought over the last couple of weeks,” Marvin Loh, senior global macro strategist at State Street in Boston, said about the market’s exuberance. “Risk could be stabilizing here.” The Fed has no choice but to press on, but if inflation is no longer rising, that indicates the end of more extensive tightening may be near, Loh said.
The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.92% and the Nasdaq Composite advanced 1.88%. Energy stocks rose more than 3%, buoyed by rising oil prices as China eased some of its Covid-19 restrictions, stoking hopes for a jump in demand.
The banks rose, with ANZ up 1.48%, CBA up 1.7%, NAB up 1.15% and Westpac up 1.99%. Macquarie was up 5.6%. So old world financials did well.
Where as in Crypto Pain land. Sam Bankman-Fried’s digital-asset empire filed for Chapter 11 bankruptcy, capping the downfall of one of crypto’s wealthiest and most influential moguls and his collection of high-flying ventures including exchanges and a massive trading operation.
At his peak, crypto mogul Sam Bankman-Fried was worth $26 billion. At the start of this week, he still had $16 billion. Following the collapse of his crypto exchange FTX and his Alameda Research trading house, his assets in the Bahamas have been frozen by the authorities, he’s being investigated by the US Securities and Exchange Commission for potential violations of securities rules, and regulators in Cyprus are poised to suspend his license to operate in Europe. By Thursday, the Bloomberg Billionaires Index was valuing FTX’s US business at $1, down from $8 billion in January. That’s not a typo. One dollar.
Go to the Walk The World Universe at https://walktheworld.com.au/
The Markets boomed on Thursday with the S&P 500 and NASDAQ racking up their biggest daily percentage gains in over 2-1/2 years after a better-than-expected inflation read in October sparked speculation the Federal Reserve might become less aggressive with interest rate hikes. Note though, not a pivot a slowing! More than 90% of stocks in the benchmark were in the green.
As a result, stocks in sectors across the board surged as the latest consumer price data cheered investors worried that ongoing interest rate hikes could hobble the U.S. economy.
“This is a big deal,” said King Lip, chief strategist at Baker Avenue Asset Management in San Francisco. “We have been calling the peak of inflation for the last couple of months and just have been incredibly frustrated that it hasn’t shown up in the data. For the first time, it has actually shown up in the data.”
This crimped Treasury yields and sparking a sea of the green in tech stocks amid hopes for the Federal Reserve to lean less hawkish on rate hikes and lower interest rates translating to better earnings returns later.
In the end, The Dow Jones Industrial Average gained 3.7%, the NASDAQ was up 7.4%, and the S&P 500 gained 5.5%. The Dow has now recovered about 17% from its closing low on Sept. 30, and it remains down about 9% from its record high close in early January.
The Labor Department reported that the consumer price index was up 7.7% from a year earlier, the smallest annual advance since the start of the year and down from 8.2% in September. Core prices, which exclude food and energy and are regarded as a better underlying indicator of inflation, advanced 6.3%, pulling back from a 40-year high. In fact, year-over-year, core CPI jumped 6.3%, along with several other months this year, the worst since 1982.
Go to the Walk The World Universe at https://walktheworld.com.au/
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