European and American economic data are not good. The number of new home starts in the United States in September fell by 8.1% month-on-month, and construction permits increased by 1.4% month-on-month, weaker than expected. The property market continued to be suppressed by Federal Reserve Hawkish interest rate hikes . euro zone reconciled CPI in September increased by 9.9% year-on-year, and still hit a new high. In the same month, the UK CPI inflation accelerated to 10.1%, returning to the 40-year high in July.
The market generally expects that the European Central Bank and the Federal Reserve will raise interest rates by 75 basis points in late October and November, and the probability of the United States raising interest rates by 75 basis points in December rose to 60%. ECB Management Committee Vasle said the rate hike should be raised by 75 basis points in the next two meetings. Concerns about a further recession in the UK have led traders to lower the Bank of England's November rate hike expectations of from 100 basis points to 75 basis points.
This year, the hawkish vote committee and St. Louis Fed Chairman Brad said that interest rate hikes must be promoted as the Fed has already suggested. If inflation falls less rapidly than FOMC expected, the Fed will have to react. The dovish Minneapolis Fed Chairman Kashkaliz said some signs that supply chains are improving, and the more the supply chain improves, the less room for the Fed to raise interest rates.
Feder Blackbook noticed that inflation is still high but some regions have fallen. The regional Fed's business liaison is even more pessimistic about the economic growth prospects. It is expected that high inflation and rising interest rates will weaken the economy, and the demand is weakened but will increase in the future.
US President Biden called on US oil companies to suspend repurchasing stocks during the conflict between Russia and Ukraine, and demanded that domestic oil production be increased while selling an additional 15 million barrels of strategic oil reserves. However, the increase in oil prices still expanded to more than 2%, and oil and gas stocks rose against the market.
Key financial report, Tesla 's third-quarter revenue and gross profit margin of automobile business were lower than expected, and the adjusted EPS was positive, and it fell by more than 6% after the market closed. IBM's third-quarter financial report exceeded expectations, with annual revenue growth exceeding 5%, and after-hours rose by nearly 5%.
US stocks turned upwards at the beginning of the session but eventually fell together. Netflix hit the biggest increase in January last year 1html last year. Tesla's revenue fell 6% after the session
Wednesday, October 19, as the 10-year US bond yield soared to a four-year high, the market's expectations of the Federal Reserve's greater interest rate hike suppressed the optimism brought by a good start to the financial report season. US stocks opened lower collectively, turned up at the beginning of the session, and the decline after midday expanded to daily lows again. The decline narrowed at the end of the session, and the technology stocks that were sensitive to interest rates once fell first, and bank stocks reversed the financial report this week's upward trend.
US stocks both stopped rising for two days, S&P 500 fell below 3700 points, and fell 1.4% during the session, the Dow Jones Industrial Average fell nearly 300 points during the session, and the Nasdaq fell 1.7% at one point, and Russell's small-cap stock market fell 2.6% during the session, the worst performance:
S&P 500 closed down 24.82 points, a drop of 0.67% at 3695.16 points. The Dow Jones Industrial Average closed down 99.99 points, down 0.33%, to 30,423.81 points. The Nasdaq closed down 91.89 points, down 0.85%, to 10,680.51 points. The Nasdaq 100 fell 0.4%, the Russell 2000 small-cap stock fell 1.7%, the Nasdaq Biotech Index fell 3.3%, and the Philadelphia Stock Exchange KBW Bank Index fell 3.6%.
Only energy stocks closed higher and rose nearly 3% among the 11 sectors of S&P, while oil service provider Baker Hughes led the way with more than 6%. Real estate fell 2.6%, leading the decline, with the financial sector falling about 1.6%, and health care, utilities, optional consumption and raw materials falling more than 1%.
US stocks turned down after midday, and once collectively fell by more than 1%. Only energy stocks in the 11 major sectors rose
chip stocks once fell at midday, and turned up again at the end of the trading session or fell half. Philadelphia Semiconductor Index once erased nearly 2% of the gains and turned to a decline, and finally closed up 0.8%. Intel turned 0.5%, AMD fell more than 1%, Nvidia wiped out more than 3% of the gains and turned to a decline, and finally closed up 0.7%. Dutch semiconductor equipment maker ASML European stocks rose more than 8%, and US stocks rose more than 6%. The third-quarter profit exceeded expectations and the scheduled quota hit a new high, outperforming the slowdown trend of the entire industry.
Other stocks with significant changes include:
Dow Jones stocks, consumer goods giant Procter & Gamble and insurance company Travelers Companies rose nearly 1% and more than 4% respectively, and the third quarter reports exceeded expectations, but P&G lowered its annual revenue guidance, saying that the drag on fiscal 2023 performance will exceed previous expectations.
United Airlines' third-quarter revenue and profit exceeded expectations, and the continued surge in tourism demand made it optimistic about its guidance in the fourth quarter, with its stock price rising nearly 5%, driving airline stocks to rise generally. Shareholders of low-cost airline Spirit Airlines approved a merger with JetBlue, with the former rising more than 1%, while the latter falling nearly 2%. If approved by regulators, the fifth largest airline in the United States is about to emerge.
Power equipment maker Generac fell more than 25% to its lowest since June 2020, lowering its annual revenue growth forecast before releasing its financial report next month. The third-quarter earnings guidance cut in half, saying it filed for bankruptcy due to pressure on the residential sector's sales and the largest clean energy customer.
German automaker BMW plans to invest $1.7 billion in the United States to produce electric vehicles and batteries, and will produce at least six fully electric models in the United States by 2030. Its European stocks rose slightly, while US stocks fell nearly 1%.
The U.S. Food and Drug Administration (FDA) authorized mixed vaccination with Novavax enhanced shots based on the Pfizer or Moderna COVID-19 vaccine. Novavax rose nearly 6% and then turned nearly 4%.
Popular Chinese follow the U.S. stock market downward . Chinese ETF KWEB fell nearly 7%, CQQQ fell nearly 5%, and Nasdaq Golden Dragon China Index (HXC) fell 7%. Among the four Nasdaq 100 stocks, JD.com fell 7.7%, Pinduoduo fell 6.7%, NetEase fell more than 5%, and Baidu fell nearly 9%. Among other stocks, Alibaba fell 6.6%, Tencent ADR fell 5.5%, and Bilibili and the "Three Car Manufacturing Fools" both fell more than 10%.
After the release of inflation data from the euro zone and the UK, investors evaluated the expectation of interest rate hikes and the possibility of recession, and European stocks collectively turned to decline. The Pan-European Stoxx 600 index closed down 0.53%, ending its four-day rise and falling from its two-week high. Financial services, construction and travel stocks led the decline, and the insurance and energy sectors rose against the market. The indexes of major countries fell, with the Russian stock index falling nearly 3%.
Amazon founder Bezos has become the latest business tycoon to warn about the economic situation, saying that the future may be more difficult. David Kostin, chief U.S. stock strategist at Goldman Sachs, pointed out that high interest rates that are rapidly rising and not fully priced by the market are still a risk of stock market rebound.
00 for the first time in 14 years, and 30, 1-year British bond yield fell by more than 30 basis point and fell below 4%
Concerns about the Federal Reserve maintaining a hawkish interest rate hike stance and economic recession spread, and the 10-year US Treasury yield rose by 14 basis points, rising above 4.1% for the first time since July 2008. The yield on 30-year long bonds rose by more than 12 basis points, pushing 4.15% to hit another nine-year high. The two-year yield, which is more sensitive to monetary policy, rose 12 basis points to a fifteen-year high of 4.556%.
The US Treasury Department auctioned $12 billion in 20-year Treasury bonds, with the bid rate of 4.395%, compared with the previous time at 3.820%. The decline in the 20-year U.S. Treasury bond price expanded, and its overall yield intraday growth expanded to more than 11.0 basis points, setting a new daily high of 4.4001%.
Eurozone national government bond yields generally rose. The yield on the regional benchmark 10-year German bond rose 9 basis points to 2.38%, hitting an eleven-year high of 2.423% last week, and the yield on the 10-year Italian bond rose 8 basis points, approaching a nine-year high, and the yield on the fascia bond rose 10 basis points.
analysis said that the ECB hawkish interest rate hike policy is a key factor in pushing up the European bond yield this year. After the bond market transactions stabilize, the upward trend of yields will resume. The French central bank governor said this week that the ECB may start selling bonds to reduce the balance sheet from the end of this year.
Although the Bank of England will shrink its balance sheet from November, it said it will not sell long-term Treasury bonds this year. The 10-year British bond yield fell 7 basis points to 3.88% to a two-week low. The 30-year British bond yield fell by 32 basis points, falling below 4% for the first time since October 4. The 20-year yield fell by more than 23 basis points, the 50-year yield fell by 38 basis points, and the two-year yield fell by 6 basis points to 3.50%.
Although the United States confirmed the sale of 1,500 ,000 barrels of strategic oil reserves, U.S. oil rose more than 4% during the session, and European natural gas fell for five consecutive days
Oil prices rebounded from two-week lows.WTI November crude oil futures closed up $2.73, or 3.29%, at $85.55 per barrel, up 4% during the session and once rose above $86. Brent November crude oil futures closed up $2.38, or 2.64%, at $92.41 per barrel, up more than 3% during the session and rose to $93. NYMEX In October, the US natural gas futures fell nearly 5%, falling to a new low for nearly three and a half months for four consecutive days.
Although U.S. President Biden confirmed that he would sell 15 million barrels of oil from strategic oil reserves to ease the rising trend of gasoline prices, oil prices are still expanding under pressure from tight supply fundamentals . Last week, U.S. EIA commercial oil inventories unexpectedly fell by nearly 1.73 million barrels, compared with an increase of nearly 10 million barrels, with strategic oil inventories falling to their lowest since June 1984.
The European benchmark Dutch TTF natural gas futures fell 5%, trading at 117 euros per megawatt hour, falling more than 5% during the session and falling below the 110 euro mark, setting a new four-month low for five consecutive days. ICE UK natural gas also fell nearly 5%, falling 13% during the session and losing to the 200p /kcal integer. Analysts said that warmer temperatures, adequate gas storage and a large number of LNG tankers arrived in ports all lowered European natural gas prices this week.
USD breaks from a two-week low, the yen hits another 1-year low of 32html. High inflation and political chaos have caused the pound to fall by more than 100 points
As US Treasury yields rise, a basket of USD index DXY rose 0.9% and rose above 113 at one point, regaining most of the declines since Monday, rebounding from the lows in the past two weeks.
Euro fell nearly 1% against the US dollar and fell below 0.98. The yen against the US dollar fell below the 150 mark, hitting the lowest level for 32 years for three consecutive days this week. The market is concerned about whether the 150 yen is the threshold for the Japanese authorities to intervene in the foreign exchange market.
pound fell more than 100 points against the US dollar or fell 1%, once falling below 1.12. In addition to the high inflation in the UK deepening the panic of recession and lowering the Bank of England's interest rate hike expectations, British Prime Minister Tras' refusal to resign and the Home Secretary's resignation caused further panic.
Non-US currencies generally fell. The commodity currency, which measures risk sentiment, approaches a two-year low. Vietnamese Dong set a new low for ten consecutive days, which may be the longest consecutive decline since 2008, with the Indian rupee falling below 83 for the first time. offshore RMB fell by more than 500 points, falling below 7.27.
, which is closely linked to technology stocks and risk preferences, is mostly down. Bitcoin, the largest leader in market capitalization, continued to fall to an integer of $19,000, and Ethereum, the second largest, also fell more than 1% and fell below the $1,300 mark.
Gold fell to a three-week low, spot gold fell below 1630 USD. Demand concerns caused London metal to fall for two consecutive days
Worry about the prospect of a sharp interest rate hike in the Federal Reserve. The US dollar and US Treasury yields rose together, gold futures fell to a three-week low for two consecutive days, COMEX December gold futures closed down 1.3% at $1634.20 per ounce. Silver futures fell by about 1% on both days.
Spot gold fell by the deepest $24 or 1.5%, losing to $1,630, giving back all gains since September 28. Some analysts say that if gold falls below the bottom of September of $1,615, the next support level is the $1,600 integer mark.
Soaring inflation and the expectation of further hawkish interest rate hikes by the European and American central banks has exacerbated concerns about the global economy of and metals demand. The strong dollar also put pressure on commodities. Most London base metals fell, but London zinc rose more than 1%, while London nickel rose slightly.
, which fell nearly 2% yesterday, fell 0.5% again, losing to $7,400. Lun Aluminum fell more than 1%, further away from $2,200. Lun Lead fell 1.4% and fell below the $2,000 mark. Although Indonesia is considering a potential ban on tin exports, London tin still fell more than $110 or down 0.6%. Data shows that LME aluminum inventory so far this month has surged by 70%, and Russian aluminum materials that are suspected to be unsold are flowing into warehouses in large quantities.
Chicago corn futures fell for four consecutive days, the longest consecutive decline in a month. As the dollar strengthened, the Mississippi River transportation was blocked and it was not conducive to US grain sales. Investors are optimistic that Ukraine's cereal export agreement will be extended, with U.S. wheat futures falling another 1% to a one-month low.
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