August 22, 2022
Stocks Drop as Risk-Off Tone Prevails After Rally: Markets Wrap
Stocks retreated on Monday as a risk-off mood took hold at the start of a key week for financial markets when central bankers gather at their annual Jackson Hole retreat.
The S&P 500 headed toward its second straight day of losses, trimming its monthly gains. Technology shares underperformed as Treasury yields climbed, with the 10-year rate close to 3%. The dollar rose.
Euro Back Below Parity Just Start of Decline, Strategists Say
The euro broke below parity for the second time in just over a month as a resurgent dollar and the prospect of a difficult winter for the region begin to bite. Strategists see the dip as just the start of a deeper descent.
Morgan Stanley forecasts the euro will slide to $0.97 this quarter, a level not seen since the early 2000s. Nomura International Plc targets $0.975 by the end of September, after which the market could be looking for the $0.95 level or possibly lower, as pressure on energy supplies raises the risk of blackouts and likely boosts euro imports.
China Plans $29 Billion in Special Loans to Troubled Developers
China will offer 200 billion yuan ($29.3 billion) in special loans to ensure stalled housing projects are delivered to buyers, people familiar with the matter said, ramping up financing support for its beleaguered property sector.
The previously unreported size of the lending program, which was announced with scant details by China’s housing ministry, finance ministry and the central bank late Friday, would make it the biggest financial commitment yet from Beijing to contain a property crisis that’s seen home prices slump and real estate sales plummet.
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