August 24, 2022
United States:
Stocks Fluctuate Amid Fed Policy, Growth Risks: Markets Wrap
Stocks struggled for direction as investors digested the latest hawkish noises from the Federal Reserve amid mounting signs of a global economic slowdown.
The S&P 500 fluctuated in a tight range. The 10-year Treasury yield climbed after data showed orders placed with US factories for core capital goods rose by more than expected in July, pointing to sustained demand for equipment despite higher interest rates and concerns about a weakening economy. The dollar resumed an advance against major peers.
Europe:
Traders Boost ECB, BOE Rate-Hike Bets as Energy Costs Surge
Traders are betting the European Central Bank and the Bank of England will have to take bolder action to tame surging prices exacerbated by the fallout of Russia’s war in Ukraine.
For the first time Wednesday, money markets fully priced in a percentage-point of tightening by the ECB’s October meeting, according to swaps tied to the decision date. That would take the key rate to 1%, a level last seen more than a decade ago.
Asia:
China Plans More Measures to Stabilize Economy as Recovery Slows
China is planning a slew of measures to stabilize growth as the economic recovery shows signs of slowing from repeated Covid lockdowns and the crisis in the country’s property sector.
The State Council has readied a 19-point policy package to help keep economic operations within a reasonable range, state broadcaster CCTV reported on Wednesday, citing a regular meeting chaired by Premier Li Keqiang. The package includes a quota of more than 300 billion yuan ($43.7 billion) for policy and development financial tools that is expected to create synergies with policies already introduced and push the economy to stabilize and develop for the better, it said.
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