August 30, 2022
United States:
US Equities Rise as Post-Powell Slide Subsides: Markets Wrap
US stocks rose on Tuesday as investor sentiment stabilized after a rout sparked by the Federal Reserve’s signal of a sustained period of restrictive monetary policy to quell inflation.
The S&P 500 and the tech-heavy Nasdaq 100 rose. Treasuries slumped, with the 10-year rate around 3.11%. The dollar declined.
Fed Bank of Richmond President Thomas Barkin reiterated on Tuesday that the central bank would not flinch in its efforts to cool prices. He also cautioned that it might not be a smooth process. The realization that interest rates are likely to remain elevated for an extended period after Fed Chair Jerome Powell’s Friday speech had forced a repricing across assets for two consecutive sessions. Investors are still absorbing the central bank’s stern monetary-policy outlook.
Europe:
German Inflation Quickens to Record as ECB Weighs Next Hike
German inflation accelerated to the most since the euro was introduced on soaring energy prices, bolstering calls for a jumbo interest-rate increase when the European Central Bank meets next week.
Consumer prices in Europe’s biggest economy, calculated under European Union harmonized standards, jumped 8.8% from a year ago in August, matching the median estimate in a Bloomberg survey of analysts.
Asia:
China’s Largest Developer Posts Record 96% Profit Slump
Country Garden Holdings Co. said first-half earnings plunged 96%, the most since its 2007 listing in Hong Kong, as China’s property crisis engulfed the nation’s largest developer by sales.
Unaudited net profit slumped to 612 million yuan ($88 million) in the six months ended June, a filing by the Foshan-based company showed Tuesday. Core net profit, which adjusts for items including property revaluations, dropped 68%.
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