3rd October 2022 Market Updates
FPG Fortune Prime Global Overnight headlines
Overnight headlines
On Friday in New York, the yield on the US 10-year note increased by 4 basis points to 2.83 percent, a minor change to cap off a turbulent month.
All three major Wall Street benchmarks ended the day lower, with Nike’s warning of excess inventory and the need for hefty discounts to move items hurting the Dow the most.
It could be too optimistic to think that the year-to-date sell-off is about to cease.
Goldman Sachs strategist David Kostin stated in a letter over the weekend that there is cause for caution: “Hedge funds, mutual funds, and retail traders have reduced equity exposures year-to-date. Nevertheless, investor stock positions are still high compared to longer-term trends, and we expect more selling in 2023.
“Increased unemployment, decreasing GDP, and rising interest rates will encourage households to keep offloading holdings. Due to high buybacks and limited issuance, corporations will be the main source of demand for equity.
“While pension funds will be nett buyers, foreign investors will nett sell US stocks. Although we anticipate that the upside in such a recovery would be constrained, light positioning represents an upside risk to our year-end price objective of 3600 if macro conditions improve.
The S&P 500 reached 3586 at the week’s end.
Apple’s closing price for the US trading week was $US138.20.
Market movements
- US64.00 cents to AUD -1.5%
- The Dow fell 1.7% on Wall Street. S&P 500 -1.5% Nasdaq fell 1.5%
- Stoxx 50 increased by 1.2%, FTSE increased by 0.2%, and CAC increased by 1.5% in Europe. DAX +1.2%
- Spot gold in New York is steady at US$1660.61/oz
- Brent crude dropped by 0.6% to $US87.96 per barrel
- US 3.83% Australia 3.88% Germany 2.10% 10-year yield
Today’s agenda
Local: September CoreLogic housing prices, MI inflation
Overseas data: August construction spending, September manufacturing PMIs for Japan (Tankan and Nikkei), the Eurozone (Markit), the UK (Markit), and the US (Markit, ISM)
