The latest from the markets show the bears are running the show. It is not pretty.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
Tag: Market Update
The Whipsaw Market Weekly Update [Podcast]
The latest edition of our finance and property news digest with a distinctively Australian flavour.
In our weekly review, we reflect on a chaotic week in the markets, from stocks, to crypto, even as stocks rallied at the end of the week in financial markets thanks to Federal Reserve Chair Jerome Powell’s reassurance that bigger rate hikes would be off the table for now even after the hot inflation readings of the past few days. Separate comments from San Francisco Federal Reserve president Mary Daly also backed half-percentage point rate increases at each of the central bank’s next two meetings. There is a clue to why we are seeing so much craziness.
After sinking almost 20% from a record and flirting with a bear market, the S&P 500 saw a broad-based rally on Friday. It still posted a sixth straight week of declines — the longest losing streak since June 2011. The NASDAQ 100 outperformed amid a rally in giants like Apple Inc., Microsoft Corp. and Amazon.com Inc.
Meanwhile, Elon Musk caused chaos over his takeover offer for Twitter Inc., first claiming his bid was “temporarily on hold” and then maintaining he’s “still committed” to the deal — sending the social-media giant into a tailspin. Tesla Inc. jumped. Treasuries fell with the dollar.
Despite the strong gains on Friday, many traders aren’t yet convinced that equities have reached a bottom after a selloff that shaved $10 trillion from US stock values in 18 weeks. Instead, they say investors should still brace for volatility as the Fed’s ability to fight price pressures without causing a hard landing may depend on factors outside the central bank’s control. Frankly forecasting is a mess.
Back in January, stock strategists known for their enduring optimism expected the S&P 500 to add 5% in 2022.Bond strategists weren’t any more prescient. Interest rate strategists and economists were calling for 10-year Treasury rates to rise to 2% by June. Yields took out that level in early February and have touched 3.2% this month.
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Leaky Boats – After A Bruising April: May May? [Podcasts]
In this week’s market review we look at the action around the world, starting in the US, Europe Asia and Australia, and looking at Gold, Oil and Crypto in passing.
The news is not good, for those believing in a return to Bull markets, supported by a Fed Put. Actually, with inflation running hard, Central Banks will lift rates, and as yet markets are not fully pricing the risks of this change. Why would they, as there are many who profit from transaction, any transactions, so of course they are talking their book. Hope that the Fed can lift rates to counter persistently high inflation without tipping the US economy into a recession are fading, further fraying market sentiment.
CONTENTS
0:00 Start
00:15 Introduction
1:00 Earning Season
1:50 Sentiment Surveys
2:54 US Growth and PCE
5:57 US Markets
9:20 Monetary Policy
12:50 Oil
13:15 Gold
16:10 Silver
18:20 UK Home Values
21:08 Europe
22:27 Asia
25:35 Australia
28:25 Crypto
30:29 Conclusion And Close
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Leaky Boats – After A Bruising April: May May?
In this week’s market review we look at the action around the world, starting in the US, Europe Asia and Australia, and looking at Gold, Oil and Crypto in passing.
The news is not good, for those believing in a return to Bull markets, supported by a Fed Put. Actually, with inflation running hard, Central Banks will lift rates, and as yet markets are not fully pricing the risks of this change. Why would they, as there are many who profit from transaction, any transactions, so of course they are talking their book. Hope that the Fed can lift rates to counter persistently high inflation without tipping the US economy into a recession are fading, further fraying market sentiment.
CONTENTS
0:00 Start
00:15 Introduction
1:00 Earning Season
1:50 Sentiment Surveys
2:54 US Growth and PCE
5:57 US Markets
9:20 Monetary Policy
12:50 Oil
13:15 Gold
16:10 Silver
18:20 UK Home Values
21:08 Europe
22:27 Asia
25:35 Australia
28:25 Crypto
30:29 Conclusion And Close
Go to the Walk The World Universe at https://walktheworld.com.au/
A Tradeable Bounce Within A Down Trend?
Our latest weekly market update, and what is really going on.
All three major US benchmarks surged higher into the close, with the S&P 500 and the NASDAQ recording their best weeks since November 2020.
Equity transactions spiked at the open as the expiry of stocks and index options collided with that of index futures in a quarterly event known as triple witching. Roughly $US3.5 trillion of single-stock and index-level options were estimated to expire Friday, so the market is likely distorted by these technical issues. This triple witching — when stock options, stock index futures, and index option contracts expire on the same day — usually triggers wild moves as investors move out of old positions and take new ones.
Growth sectors of the market like tech were also helped by falling interest rates even as Fed officials urged the central bank to do even more.
The rally in the broader market has stoked debate on whether this is the start of a bottoming process, or further downside lies ahead.
Market technicians, however, urge caution on reading too much into the rally as options expiry tends to muddy market movements. Technical indicators including volumes and market breadth have yet to improve significantly to signal that the market is establishing a bottom.
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The Halloween Trick or Treat: Market Update 30th October 2021 [Podcast]
Well, the interesting times continued this week, with US markets strong to the end of October, on strong results, despite some wobbles from big tech, and despite more weak economic news. And here, the lack of moves by the RBA on Friday implies that its Yield Curve Control – at least on the short end – is now over. Worth noting, they owns 64% of the April 2024 bond. In fact, the RBA might drop or amend its yield target for the as early as Tuesday’s meeting – but I suspect they will wait.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
CONTENTS
00:00 Start
00:18 Introduction
01:48 Inflation Risks
02:30 US Market Review
06:25 Oil
08:40 Gold Still Hobbled
11:33 US GDP and Economic Data
12:15 ECB Sees Inflation
20:40 China Evergrande Pays More Interest
24:20 Coal Futures And China
26:11 Japan Slowing
27:45 Australian Market
31:00 RBA Loses Control
34:00 Crypto – Whales Supply Shock
36:38 Conclusion and Close
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