10th October 2022 Market Updates
FPG Fortune Prime Global Overnight headlines
Overnight headlines
The warning of a potential $4 trillion ($6.3 trillion) loss in the global economy is ringing in the ears of the heads of the world’s financial institutions as they meet in Washington this week.
That is the gap between the growth outlook through 2026 and Germany’s size that IMF chief Kristalina Georgieva pointed out last week as a potential danger.
As central bankers, finance ministers, and others discuss the effects of runaway inflation, aggressive monetary policy tightening, mounting debt, and the largest land battle in Europe since World War II on the global economy, she will serve as the host.
OPEC+’s decision to reduce oil production, according to US Treasury Secretary Janet Yellen, is “unhelpful and imprudent” for the world economy, particularly emerging markets, she stated ahead of the summit.
According to an interview with the Financial Times, Yellen stated, “We’re quite concerned about developing countries and the issues they face.
Given the other issues, it will be of little consolation that the IMF and World Bank annual meetings will be held entirely in person for the first time since the COVID-19 outbreak in early 2020, demonstrating progress in containing the epidemic.
The current economic, climatic, and security issues are unprecedented since 1945, according to world officials.
However, other aspects, like the damage the US Federal Reserve’s interest rate hikes in the early 1980s caused in emerging markets, fit with the current situation.
In Australia, assistant governor Luci Ellis might provide insight on the Reserve Bank of Australia’s most recent policy considerations in the wake of its decision to switch to smaller rises.
In other headlines this week, the Nobel Prize in economics, UK financial stability information, a rate hike in South Korea, and a quicker core inflation reading in the US will be among the highlights.
On Wednesday, the Financial Policy Committee of the Bank of England will be under the spotlight, which is a surefire indication that the UK is dealing with serious problems.
Market movements
- AUD down 0.5% to US63.75
- Bitcoin fell by 0.6% to US$19,411
- Dow -2.1% S&P 500 -2.8% Nasdaq fell 3.8%
- Gold fell 1% to $1,694.82 US per ounce
- Brent oil increased 3.7% to $US97.92 per barrel
- A tonne of iron ore is unchanged at $US95.80
Today’s agenda
The Financial Review Energy and Climate Summit has just begun. Index for Australian Industry Group Services. ABS Data: An indicator of monthly business turnover for August. Former UK Supreme Court Justice Lord Jonathan Sumpton will be speaking at the National Press Club. Reserve Assets Release by the RBA.
