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Markets Wrap: Stocks Sink on BOE, IMF Warning

KEY POINTS

  • S&P 500 and Nasdaq 100 continue to dive amid global recession fears
  • The Dow Jones bucks the trend with a small gain
  • Dollar reverses earlier losses, Treasury yields rise
  • BoE to end the emergency bond-buying program

In the wake of recent comments by Bank Of England Governor Mark Carney, who said he is ready to take action against an economic crisis and would do so without hesitation if needed; stocks took a dive in US markets.

The dollar strengthened while benchmark Treasury yields increased as well due mainly because investors were spooked after hearing his words!

The International Monetary Fund issued a warning that the global economy could be in for more bad news. The IMF reduced its forecast of 2% growth from last year by half an percent which would mean less revenue coming into countries like ours if this turns out to be true! 

They say things are going great right now but who knows what will happen when we get closer towards 2023? There is always risk with these types circumstances so I wouldn’t take any chances either way

The tech-heavy Nasdaq100 fell more than 1% as new selling in tech shares caused the S&P 500 to decline. However, around 11:05 AM on Monday morning there were some positive note trades happening with both bourses trading higher by up 37 points at 57184 and seven hundredths respectively.

BOE Governor Andrew Bailey Remarks

The pound sterling fell against the dollar after BOE Governor Andrew Bailey encouraged investors to wind down their positions. Long end Treasury bonds took most of the losses while longer term borrowing rates rose.

The British currency had its worst day in three weeks following comments from an influential policymaker who said they expect interest rate hikes next year despite soft economic data so far this quarter which has caused traders’ nerves ending up being tested once again

Cleveland Fed President Mester’s remarks were negative for stocks when she said that “monetary policy will need to become more restrictive in order to put inflation on a sustainable downward path.”

The markets experienced a weak Close, but the Dow Jones industrial average managed to post an unexpected gain. 

The S&P 500 and Nasdaq 100 both fell at close time with discouraging losses of 0.65% each for today’s trading session in New York City which followed last week’s impressive performance when those respective metrics fluctuated between small increases or decreases on various occasions during October so far this year already – while volatility seems gradually increasing again.

The markets were mixed this week with some sectors doing well and others declining. Of the S&P’s eleven sectors, four saw gains. The sectors leading the decline were communications and technology, while real estate, consumer staples, and healthcare all finished in the black.

Weekly S&P 500 Mini Futures

Weekly S&P 500 Mini Futures 

IMF Warning Statement

The global economy is in for a major shake-up next year, and the World Bank has warnings about what could happen as a result. Focusing on two organizations that are often relied upon to forecast economic trends–the IMF especially with its emphasis on finance issues worldwide while also noting how much influence they have had this time around but were wrong when it came down predicting last recession.

Both bodies say financial stability risks skewed towards worse than expected which means there’s going be even less room left over after all these nice little packages come gift wrapped together at holiday season prices!

The global economy is in danger, and it may be time for a reality check. The International Monetary Fund recently released their latest report about the state of play across various countries around world.

One thing they found was decreasing growth rates due primarily to China’s real estate bubble which continues expanding at an alarming rate despite recent setbacks caused by policies designed attempt control its gradual pop.

The organization stresses how this could have implications not just domestically but internationally too: “There are increasing dangers”

The news for this year is not encouraging. The United States, which has been predicted to grow by 1%. It’s unfortunate that other nations like Germany and Italy will experience a decline in their economies as well with projected growth rates at -2% and -0 .8%, respectively

The world is changing quickly due do many factors including technological advancements making some jobs obsolete while others become more valuable than ever before allowing people access information about products worldwide via internet without having attend meetings or travel internationally

Tuesday Stock Movers…

Tuesday saw a continuation of Friday’s decline in chip stocks after the U.S. Commerce Department imposed new restrictions on China’s access to American semiconductor technology, raising concerns in a market already experiencing weak demand.

  • KLA Corp (KLAC) and Lam Research (LRCX) both finished down more than 6%. Aside from that, ASML Holding (ASML) and Marvel Technology (MRVL) both experienced significant declines. Additionally, Applied Materials (AMAT) lost more than 3% of its value at the close.
  • After tourism revenue for Macau casinos fell -26% to 287 billion yuan ($40.3 billion) over the Golden Week holiday from a year ago, U.S.-listed Macau casino operators sold off on Tuesday due to disappointing China holiday spending.
  • Las Vegas Sands (LVS), the largest decliner in the S&P 500, finished down more than 7%. Additionally, MGM Resorts International (MGM) and Wynn Resorts (WYNN) both experienced declines of more than 2% and 7%, respectively.

The market on Tuesday suffered from weakness in bank stocks. JPMorgan Chase (JPM) led the Dow Jones Industrials losers with a closing decline of almost 3%. Additionally, more than 2% was lost by Goldman Sachs (GS), Wells Fargo (WFC), Bank of America (BAC), Citigroup (C), Comerica (CMA), and US Bancorp (USB). 

Earnings Release Updates..

Today’s instrument is PepsiCo, Inc. (PEP) which is today expected to release earnings before the market opens. The financial quarter covered by the report will end in September 2022. The consensus EPS forecast for the quarter is $1.85.

Tomorrow, Indian information technology company, Infosys Limited is also expected to report earnings before the market opens. The report will cover its second-quarter fiscal 2023. The consensus EPS forecast for the quarter is $0.18.

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Author

  • Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.

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