November 8, 2022
US Futures Rise on Hopes for a Post-Midterms Rally: Markets Wrap
US stock-index futures rose as investors bet the outcome of midterm elections will support a nascent rally. Treasuries advanced before Thursday’s inflation print that may offer clues on Federal Reserve policy.
Contracts on the S&P 500 and Nasdaq 100 indexes added at least 0.2% each, after US stocks posted a second-day advance on Monday. The two-year Treasury yield shed 2 basis points. The dollar gained after a two-day slide. NVidia Corp. climbed in early New York trading as it began producing a processor for China. Take-Two Interactive Software Inc. fell after reducing its forecast for net bookings. Bitcoin tumbled as part of a crypto selloff.
BOE’s Pill Says Market Turmoil De-Anchored Inflation Outlook
Bank of England Chief Economist Huw Pill said market turmoil in the UK in recent weeks led to some “de-anchoring” of inflation expectations, and the central bank is working hard to tamp down those views.
“What we’re most concerned about is whether this self-sustaining inflation will persist,” Pill said Tuesday on a panel discussion in London hosted by UBS.
China Expands Financing Tool That Can Support Ailing Developers
China expanded a key financing support program designed for private firms including real estate companies, a move that promises to help developers sell more bonds and ease their liquidity woes.
The National Association of Financial Market Institutional Investors widened the program launched in 2018 to support about 250 billion yuan ($34.5 billion) in debt sales by private companies including developers, the regulator said in a statement on its website Tuesday. The ways to support such financing include bond guarantees, credit enhancement and bond purchases, it said, adding that the move is part of efforts to stabilize the economy and could be expanded further if needed.
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