October 5, 2022
Stock Shorts Fold in Best Two-Day Rally Since 2020: Markets Wrap
Stocks extended their rebound from deeply oversold levels, with traders weighing whether it would be realistic that central banks moderate their aggressive stance to prevent a hard landing.
The S&P 500 had its best two-day surge since April 2020. Tesla Inc. climbed even after Elon Musk revived his $44 billion bid for Twitter Inc., which soared 22%. On top of the equity short squeeze, soft economic data gave bulls a glimmer of hope when it comes to policy. US job openings sank to a 14-month low — which may fit well with a Federal Reserve that’s worried about a hot labor market. The dollar slumped.
Poland Unexpectedly Keeps Rates on Hold as Growth Worries Mount
The Polish central bank unexpectedly paused its yearlong cycle of interest-rate hikes in a sign that it’s more focused on sagging economic growth than surging inflation. The zloty dropped.
Policy makers left the benchmark rate at 6.75%, defying forecasts from 27 of 30 economists surveyed by Bloomberg. Central bank Governor Adam Glapinski signaled last month that the pause could come as early as October. Yet the latest reading of inflation — the highest in 26 years — raised expectations for more tightening.
China Sports Stocks Bounce as Marathon Fuels Reopening Hopes
Shares of Chinese sportswear makers climbed as investors bet that a Beijing marathon might signal an easing of pandemic restrictions that have hurt consumer demand.
The Beike Beijing Marathon will be held November 6, with only qualified local residents allowed to participate, according to state media reports. With slots for 30,000 runners, it will be one of the largest public events in the capital since the Winter Olympics in February.
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