November 1, 2022
United States:
Stocks Gain With Economic Data in Focus Before Fed: Markets Wrap
Stocks climbed and bond yields slumped, with traders awaiting economic data for clues on whether the Federal Reserve will decelerate its pace of monetary tightening to prevent a hard landing.
The rally in equities is putting the S&P 500 closer to the key 4,000 level. Treasury 10-year rates sank as much as 13 basis points to 3.92%. Fed Chair Jerome Powell’s favored portion of the curve — the difference between where three-month yields are now versus where they are expected to be in 18 months’ time — is on the cusp of inverting. That would be a warning signal for many investors about a recession.
Europe:
Lagarde Says ECB Rate Peak Must Ensure Inflation Goes to 2%
European Central Bank President Christine Lagarde said the peak of the current cycle of interest-rate increases must ensure that inflation returns to the 2% target over the medium term.
Without specifying a level for the so-called terminal rate, Lagarde said borrowing costs have further to rise following last week’s second straight 75 basis-point hike.
Asia:
China to Strive for ‘Better’ Economic Outcome, Premier Li Says
China will strive for a “better” economic outcome and promote a stable, healthy and sustainable development of the economy, state broadcaster CCTV reported Premier Li Keqiang as saying.
The economy is “showing a stabilizing and rebounding momentum” after the government introduced a slew of supportive policies to counter unexpected headwinds earlier this year,” Li was cited as saying at a meeting of the Shanghai Cooperation Organization Tuesday.
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