September 25, 2023
United States:
Morgan Stanley’s Wilson Sees Risks Rising for US Consumer Stocks
Consumer stocks, one of the brightest corners of the market this year, are about to lose their shine as risks build for the sector, according to Morgan Stanley’s Michael Wilson.
The faltering rally is in keeping with the view of Morgan Stanley economists that household spending probably can’t sustain the surprisingly strength of the first three quarters, the strategist said.
Europe:
Lagarde Repeats ECB Rates to Stay Restrictive as Long as Needed
European Central Bank President Christine Lagarde reiterated that borrowing costs will remain elevated for as long as needed to tame consumer prices — even as the economy struggles.
“Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary,” Lagarde told lawmakers in the European Parliament.
Asia:
China Developers Drop Most in 9 Months on Evergrande Woes
Chinese property stocks tumbled the most in nine months as concern over a possible China Evergrande Group liquidation added to fresh signs of stress across the industry.
A Bloomberg Intelligence gauge of developer shares fell 7.1% Monday, taking its loss in valuation this year to almost $56 billion. Evergrande, which scrapped key creditor meetings at the last minute and said it must revisit its restructuring plan, dived 22%. China Aoyuan Group Ltd. was the biggest drag on the index, slumping by a record 72% after shares resumed trading following an 18-month halt.
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