Here's the latest market news, hand-curated by our research team.
The Big Story
Meta Platforms (META) rose more than +2% after CEO and owner Zuckerberg said his company would freeze hiring and restructure some teams to cut costs and shift priorities. Several tech companies have been forced to slash headcount in recent months as advertisers trim spending to prepare for a slowdown in the economy.
• All eyes will be on today's Fed emergency meeting. The rapid surge in the US dollar and bond yields have led to high volatility across markets. A surprising cautious stance from Fed officials could help stocks.
• Investors will be looking closely at Friday’s US jobs report assessing how much impact the Fed’s rate hikes are having on the US economy. The momentum behind EU and US PMIs will also be closely followed.
• Oil is back on the screen of every trader as OPEC+ is reported to be considering a major production cut at its upcoming meeting on Wednesday, against a backdrop of falling oil prices and market volatility.
Economic data this week
• US ISM manufacturing PMIs, JOLTs job openings, ADP nonfarm employment, factory orders, unemployment rate, hourly earnings
• EU manufacturing PMIs, PPI, retail sales
• Gerrman PMIs, factory orders
• UK manufacturing PMIs
Earnings this week
• Tesco, Aeon,
Levi Strauss, Constellation
• Brands, McCormick, ASX
Crypto
• This morning, Bitcoin is trading lower near a one-week low, and Ethereum is nearing a two-week low as negative sentiment persists.
• Spain’s largest telecom company Telefónica has reportedly led a €30 million investment round in Bit2Me, Spain’s largest crypto exchange.
US stocks reversed at the open on Friday with the release of the Fed's closely watched core PCE price index, which showed that prices continued to increase at a rapid pace. On the week, the S&P500 fell 2.9%, bringing the index to a new 2022 low.
During the week, Treasury yields advanced, with yields on the 10-year hitting 4% at one point while the dollar index retreated. On Friday, the euro came under pressure after a drop in EU bond yields and a higher-than-expected eurozone September CPI print. And the sterling continued its recovery, reversing early week losses.
This morning, oil rises more than 2% as OPEC+ is considering its biggest production cut since the pandemic when it meets this week. US equity futures are falling further as negative sentiment and fears persist.
Chart Of The Day
The US Personal Consumption Expenditure Core Price Index (PCE) came slightly higher than estimates for the month of August, slashing hopes of traders still hoping for an imminent Fed pivot from rapidly rising interest rates.
FlowBank Blog
MonthlyFlow - October 2022
Markets continue to worry about overtightening and recession
Sentiment is extremely negative, which might suggest the downside is more limited
Disinflation should boost sentiment, but it could take time
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