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US Open Note – Ugly retail sales data question Fed tightening; dollar plummets to fresh lows

Posted on January 14, 2022 at 2:25 pm GMT

Stocks to close the week in the red; banking earnings beat estimates Fed policymakers keep throwing cold water on stock markets, highlighting that a faster pace of higher interest rates will be required to cool inflation from March onwards, as persisting pandemic-led supply bottlenecks might create additional price pressures in the coming months.The Fed’s No.2 official Lael Brainard and the Chicago Fed President Charles Evans were the last on the call on Thursday, with tech stocks driving the Nasdaq 100 [..]

Netflix enters bear market ahead of earnings – Stock Market News

Posted on January 13, 2022 at 3:25 pm GMT

The world’s dominant streaming platform will release its latest earnings on Thursday, January 20, after Wall Street’s closing bell. Profits are expected to have taken a hit thanks to heavy spending on new content, although the most important metric will be subscriber growth. Netflix shares have suffered a serious drawdown lately and could get even cheaper in an environment where rising interest rates torment stocks with expensive valuations.  Investing in content Netflix enjoyed a massive boom during the early stages [..]

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US Open Note – Dollar speeds down a slippery slope; stocks steady

Posted on January 13, 2022 at 2:20 pm GMT

Dollar extends inflation decline; initial jobless claims tick higher The latest CPI inflation report out of the United States was not a big surprise on Wednesday. Despite a minor pickup in the core measure, the annual headline gauge came in line with expectations at 7.0% – the highest since 1982. However, investors sold the dollar as three rate hikes by the Fed are already fully priced in to launch potentially after bond tapering ends in March, while a fourth one [..]

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US Open Note – Inflation hits its fastest pace in four decades

Posted on January 12, 2022 at 2:16 pm GMT

Powell calms the markets Fears that the US economic expansion could be jeopardized by tighter monetary policy have been alleviated for now, as the Fed Chair Jerome Powell reassured investors that the central bank would bring down inflation without derailing the US economic recovery. Powell also avoided a comment on the timing of rate hikes and stressed that no decision has yet been made regarding the reduction of the Fed’s balance sheet. After his hearing, not much has changed regarding [..]

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US Open Note – Stocks set for opening gains; Powell’s testimony in focus

Posted on January 11, 2022 at 1:42 pm GMT

Powell testimony in focus; Bundesbank’s new chief warns on inflation Markets are anticipating Fed Chair Jerome Powell’s renomination hearing in Congress later today, waiting to find out his current views on inflation ahead of the CPI data release on Wednesday. In his prepared remarks, Powell vowed to bring down inflation and warned markets that the ongoing post-pandemic expansion might look different from what they have witnessed before. Earlier today, ECB President Christine Lagarde gave a speech at the ceremony marking the [..]

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US Open Note – Stocks under pressure on faster stimulus withdrawal signals

Posted on January 10, 2022 at 2:30 pm GMT

Global bond yields hit fresh highs; stocks retreat The Fed’s new message, which sparked fears that inflation could be tough to contain, and hence could require faster-than-expected rate hikes during the year, continued to weigh on market sentiment on Monday, elevating global bond yields to fresh highs. A couple of Fed policymakers have already urged the need to move towards normalization ahead of Powell’s testimony before the Senate Banking committee on Tuesday, making four rate hikes an increasingly likely scenario [..]

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Weekly Comment – US inflation and Fed’s Chair testimony in the spotlight

Posted on January 7, 2022 at 2:34 pm GMT

Stocks staged a mid-week selloff in the aftermath of the FOMC minutes release, which revealed policymakers’ discussions for faster rate hikes and policy normalization in terms of balance sheet reduction. In the upcoming week, Fed Chair Jerome Powell’s testimony and US inflation take center stage, together with US retail sales and Chinese inflation data. Highlights: In America, three FOMC voting members are due to speak next week, while Fed Chair Jerome Powell is expected to testify before the Congress on [..]

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Daily Market Comment – Sterling shines as yields rally, stocks mixed

Posted on January 5, 2022 at 9:52 am GMT

Global spike in yields boosts sterling and US dollar, crushes yen Stock markets mixed as traders rotate towards ‘cheaper’ sectors Fed minutes and ADP jobs report coming up today Sterling leads the pack Every asset class has been dancing to the tune of rising bond yields this week. The bond market is essentially saying that some central banks will raise interest rates with force to combat inflation and that the Omicron outbreak is not enough to derail those plans, or [..]

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Weekly Comment – US jobs and PMI data eyed as Omicron cases surge

Posted on December 30, 2021 at 2:47 pm GMT

Stocks staged a post-Christmas rally, reaching new highs amid thin trading volumes. Meanwhile, the Japanese yen has emerged as the undisputed loser in the FX arena, as Omicron fears ease, prompting traders to shift into riskier assets. In the upcoming week, the latest US employment data and FOMC minutes take center stage, together with a raft of PMI data from most major economies and European flash inflation figures. Highlights: Final Manufacturing PMI data for the Eurozone, US, UK, Japan and [..]

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US Open – Stocks set for a muted opening; Omicron fears ease

Posted on December 29, 2021 at 1:34 pm GMT

Omicron not yet a problem for the US economy; dollar firms Omicron fears are easing on growing evidence that the fast-spreading variant leads to milder symptoms. This has prompted optimism about the US growth outlook as the strain has not yet weighed on economic data, despite the surging daily cases of the past week. The Richmond Fed’s manufacturing survey released on Tuesday rose in December beating consensus estimates. Firms reported their intention to continue raising wages to attract and retain [..]

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