19th September 2022 Market Update
FPG Fortune Prime Global Overnight headlines
Introduction
Markets experienced turbulence on September 19, 2022, following FedEx’s unexpected earnings warning. All three major Wall Street indices closed lower, with energy stocks leading declines. However, commodities like gold and Brent crude saw modest gains amid global market shifts. As the Federal Reserve policy meeting approaches, traders are bracing for a 0.75 percentage point rate hike.
Key Takeaways
- Wall Street Declines: Dow fell 0.5%, S&P 500 down 0.7%, and Nasdaq dropped 0.9%.
- Brent Crude Gains: Up 0.8%, closing at $91.00 per barrel.
- Gold Rises: Spot gold increased 0.6% to $1,650.05 per ounce.
Wall Street Reacts to FedEx Warning
Wall Street closed the week on a downbeat note after FedEx’s surprise earnings warning, signaling potential economic slowdown.
Sector Movements
- S&P 500: Nine of its 11 business sectors saw declines, with energy stocks leading the losses.
- Real Estate and Basic Goods: The only two sectors to finish higher, indicating cautious investor interest in defensive assets.
- VIX Index: Rose slightly by 0.1% to 26.3, reflecting market uncertainty.
Index Performance
- Dow Jones: Fell 0.5%.
- S&P 500: Declined 0.7%.
- Nasdaq: Dropped 0.9%.
Global Market Movements
European markets also faced declines, reflecting broader economic concerns.
European Indices
- Stoxx 50: Fell 1.2%.
- FTSE: Declined 0.6%.
- CAC: Dropped 1.3%.
- DAX: Experienced the steepest fall, down 1.7%.
Commodities
- Gold: Rose 0.6%, reaching $1,650.05 per ounce, as investors sought safe-haven assets.
- Brent Crude: Gained 0.8%, closing at $91.00 per barrel, amid energy supply concerns.
Bond Yields and Currency Updates
Global bond yields remained relatively stable, while currencies showed modest fluctuations.
Bond Yields
- US 10-Year Note: Yield held steady at 3.45%.
- Germany and Australia: Both at 3.2%, indicating aligned monetary policy expectations.
Currency Movements
- AUD: Increased by 0.2%, trading at 67.16 US cents, buoyed by improving risk sentiment.
Upcoming Economic Events
The financial week ahead focuses on critical economic updates and policy decisions.
Local Highlights
- AFR Property Summit 2022: Speech by Jonathan Kearns, head of domestic markets at the RBA.
Overseas Data
- NZ Consumer Confidence: Third-quarter report expected to gauge economic sentiment.
- UK Rightmove House Prices: September data release delayed due to Queen Elizabeth II’s funeral.
- US NAHB Housing Market Index: September insights into U.S. housing conditions.
Key Federal Reserve Meeting
The much-anticipated Federal Reserve policy meeting is scheduled this week, with a third consecutive 0.75 percentage point rate hike expected on Thursday.
Conclusion
September 19, 2022, highlighted market volatility as Wall Street declined following FedEx’s earnings warning, while Brent crude and gold posted gains. With the Federal Reserve’s decision looming, investors are preparing for potential shifts in monetary policy. At Fortune Prime Global (FPG), we provide critical insights and timely updates to navigate these uncertain times. Stay informed with FPG Market Watch.