11th October 2022 Market Updates
FPG Fortune Prime Global Overnight headlines
As greater inflation drives the Federal Reserve to keep raising interest rates, adding to the debt burdens on developing countries, the leaders of the IMF and World Bank warned of a rising chance of a worldwide recession.
The impact of increasing borrowing costs is “beginning to bite” in the US, the largest economy in the world, which is causing the labour market to slow down.
Due to Covid-19 interruptions and housing market volatility, China is also slowing down as natural gas prices rise. The euro zone is also slowing down.
In a last-ditch effort to salvage the British bond market this Friday, the Bank of England has increased the force of its intervention and added a new tool to prevent a pension fund disaster.
Market observers note that even though US Treasuries have fallen the most this year since at least the early 1970s, more pain may be in store unless fresh, reliable sources of demand appear. Furthermore, it’s terrible news for US taxpayers, who will ultimately be responsible for paying for increased borrowing rates.
According to the projection for US data due on Thursday, headline inflation registered a sizzling 8.1% annual rate in September, down from 8.3% in August.
Core inflation is predicted to have increased from 6.3 to 6.5 percent. Inflation is far more persistent than the U.S. central bank initially believed, according to Chicago Fed President Charles Evans. However, he pointed out that the Fed might still be able to reduce inflation without significantly increasing unemployment or causing the economy to enter a recession.
- AUD at US63.02, down 1.2%
- Bitcoin down 1.5% to US$19,231
- Dow -0.2% S&P 500 -0.4% Nasdaq fell 0.8%
- Gold is down 1.5% at US$1668.84 per ounce
- Brent crude fell 2.1% to $US95.89 per barrel
- Iron ore increased 3.1% at $US98.75 per tonne
Japan’s Current Account
UK ILO Unemployment Rate
Employment – unemployment claimants change
Swiss National Bank – SNB Chariman Jordan Speech