27th September 2022 Market Update
FPG Fortune Prime Global Overnight headlines
Overnight headlines
The yield on the US 10-year note increased 24 points to 3.92%, while the yield on the two-year note rose to 4.34%.
The British pound continued to fall to historic lows as the Bank of England decided against raising interest rates in an emergency. This led to another sell-off of sterling and bonds as investors were concerned about the government’s erratic fiscal policy.
The 10-year yield for the UK increased 42 basis points to 4.24 percent.
An early tech rally lost speed on Wall Street, which resulted in bumpy trading and largely lower stock prices before investors withdrew just before the closing bell. The VIX increased by 7.8% and surpassed 32.
Ten of the eleven S&P 500 industrial sectors fell along with real estate. Consumer goods increased by 0.01 percent.
As market investors awaited information on further penalties against Russia, oil prices fell to nine-month lows in turbulent trade. They were also under pressure from a stronger US currency.
On November 23, the Treasury said that Chancellor of the Exchequer Kwasi Kwarteng would also provide a projection from the government’s budget watchdog.
According to Christine Lagarde, the European Central Bank won’t start thinking about reducing its balance sheet until until interest rates have fully “normalised.”
Raising borrowing costs is the most appropriate and effective tool for now to combat record-high euro-area inflation, the ECB president told lawmakers in Brussels.
Market movements
- Down 1.1% to 64.57 US cents for AUD
- Bitcoin is now US$19,165, up 1.2%
- Dow -1.1% and S&P -1% on Wall Street -0.6% Nasdaq
- Spot gold decreased by 1% to $US1626.81/oz
- Brent crude decreased 2.6% to US$83.94 per barrel
- US 3.92% Australia 3.98% Germany 2.11% 10-year yield
Today’s agenda
No local data
Overseas data: August industrial profits in China; US July’s housing market data from the FHFA and S&P, August’s orders for durable goods and sales of newly built homes, September’s consumer confidence index, and Richmond Fed manufacturing data
