September 9, 2022
BofA Says ‘Appalling’ Mood Fuels $11 Billion US Stocks Exodus
Investors are rushing out of US equities as the likelihood of an economic downturn increases amid a myriad of risks, according to Bank of America Corp. strategists.
The nation’s stock funds had outflows of $10.9 billion in the week to Sept. 7, according to EPFR Global data cited by the bank. The biggest exodus in 11 weeks was led by technology stocks, which saw withdrawals of $1.8 billion. Global equity funds had outflows of $14.5 billion, while $6.1 billion was poured into government and Treasury bonds, the data show.
ECB Ramps Up Scrutiny of Banks’ Response to Energy Crisis
The European Central Bank is intensifying discussions with bank executives over their readiness for a potential surge in company defaults and a drying-up of energy-market liquidity, amid the worsening stand-off over Russian gas supplies.
The Frankfurt-based bank watchdog wrote to lenders last month, telling them to analyze the impact of a gas stoppage on their businesses, according to people familiar with the matter. Responses are due in mid-September, and follow-up conversations are to come by the end of this month, said the people, who asked to remain anonymous as the interaction isn’t public.
India’s Forex Reserves Fall to Lowest in More Than 23 Months
India’s foreign exchange reserves fell to their lowest in over 23 months on likely dollar sales by the country’s central bank to stem the fall in the local currency.
The reserves fell $7.94 billion to $553.1 billion as of September 2, data released by the Reserve Bank of India showed Friday. The reading is the lowest since October 9, 2020.
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