S&P 500: Liquidity May Have Driven Gains, Not Fed Pivot (SP500)
images_lindsay This article was originally published for Reading The Markets subscribers on July 30, 2022 The S&P 500 (SP500) rallied dramatically in recent days. Some people have attributed this to the Fed’s “dovish” pivot, which in reality does not exist. But what does exist is the liquidity that has moved into the market in recent days as margin conditions have softened and uses of the overnight repo facility have stagnated. Last week, reserve balances at the Federal Reserve’s depository institutions rose slightly to $3.276 trillion from $3.235 trillion, not a significant overall change. But for July, reserve balances rose from…
Read More »Stock Market Updates: Live coverage, including the Federal Reserve decision
TOKYO (AP) – Asian shares advanced Thursday after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were on the way to fight inflation. Wall Street rallied on Wednesday after the Fed’s biggest rate hike since 1994, as investors cheered comments from Chairman Jerome Powell suggesting future rate hikes may be more modest. The larger-than-usual rate hike had also been expected for weeks and came as no surprise. The Bank of Japan holds a two-day policy meeting, starting Thursday. Japan’s central bank is under pressure to act due to downward pressure…
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Stocks fall to their lowest since December 2020 amid renewed recession worries
US stocks sank on Thursday as investors weighed the potential economic costs of the Federal Reserve’s continued fight against inflation. The S&P 500 fell 3.25% to 3,666.77, its lowest level since December 2020. It also erased gains after rising 1.5% on Wednesday. The Nasdaq Composite fell more than 4%, sending the index down more than 30% year to date. The Dow sank 741 points, or 2.4%, to close below 30,000 for the first time since January 2021. Stocks, which initially moved higher after the Fed’s first 75-basis-point rate hike since 1994 on Wednesday, turned around as traders assessed the potential…
Read More »Latest economy, stock market and Twitter news for July 11, 2022
HONG KONG – A financial scandal in central China has affected depositors across the country, some of whom placed their life savings in four rural banks that offered high rates of return, only to find their funds frozen. as investigators looked into allegations of widespread fraud. The city backed down after a backlash, and several officials were punished. But the depositors kept coming, with up to a thousand gathered on Sunday. This time the authorities sent guards en masse to break up the demonstration. They beat the protesters, throwing them to the ground and throwing them into buses, the harshest…
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This is what usually happens after a 20% drop.
If there’s anything to hang your hat on during the current bear market in stocks, it’s that long-term markets tend to bounce back very well. The S&P 500 has been higher three years later in eight of the nine times the index has fallen 20% or more from its all-time high dating back to 1957, according to research by Truist co-chief investment officer Keith Lerner. The stock has returned an average of 29% over those eight instances. Interestingly, the stock has also rebounded strongly a year after falling 20% or more from a peak. Lerner’s data show the S&P 500…
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Live news from July 13: Sunak leads conservative leadership race, US inflation hits 9.1% in June
Fashion retailer Laura Ashley fell into administration during the pandemic © Charlie Bibby/Financial Times The accounting watchdog has “severely reprimanded” the auditor of fashion retailer Laura Ashley, which fell into administration during the pandemic. The Financial Reporting Council said on Wednesday it had fined UHY Hacker Young £300,000 as a result of failings in relation to its audit of the retailer. Martin Jones, an audit partner at the firm, has also been fined £45,000 and given a severe reprimand. The FRC said the penalties relate to Laura Ashley’s audits for the financial years ending June 2018 and 2019. The retailer’s…
Read More »Banks must learn lessons from the nickel crisis, warns the regulator
Banks must learn lessons from the nickel crisis to avoid similar risks arising in the future, according to a top UK regulator. The Prudential Regulation Authority’s chief executive of authorizations, regulatory technology and international supervision, Nathanaël Benjamin, said that while the rise in prices on the London Metal Exchange and the subsequent brief squeeze that caused the suspension of trading in March “had left some banks with bruises”. “, those who do not properly manage counterparty risk could suffer a much worse fate in the future when markets are more challenging. The size and speed of the margin calls could…
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The MTA is telling the truth, as it approaches the financial cliff
The MTA, parent of Metro-North, did something rare last week: They told us the unvarnished truth. Not that the MTA has outright lied to us before. Well, at least not very often. But they are the masters of obfuscation and confused communication. Consider these gems: “Wear a mask,” is now part of his daily mantra. Any traveler can tell you that the traffic agency does not follow its own rule, does not issue tickets to criminals and even allows its drivers and traffic policemen to walk without masks. “The train is delayed due to operational problems.” That’s a bit redundant,…
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