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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    The triangle of “interest”, “banks” and “inflation” fuels “Wall Street” fears

    Rocky
    Rocky
    Rocky
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    Join date : 2012-12-21
    • Post n°1

    The triangle of “interest”, “banks” and “inflation” fuels “Wall Street” fears Empty The triangle of “interest”, “banks” and “inflation” fuels “Wall Street” fears

    Post by Rocky Sun 12 Mar 2023, 4:21 am

    [size=45]The triangle of “interest”, “banks” and “inflation” fuels “Wall Street” fears
    1 hour ago[/size]

    The triangle of “interest”, “banks” and “inflation” fuels “Wall Street” fears 4964535

    Next week's important inflation report will test a US stock market already consumed by concerns about Fed hawkishness and the potential fallout from the biggest bank failure since the financial crisis.
    This comes at a time when the mixed US jobs report, Friday, removed some concerns related to the large increases in interest rates, which Jerome Powell, the head of the Federal Reserve, warned of the possibility of raising them higher than expected, in the event that the upcoming data showed that the economy is still overheating, after about year of stress.
    However, Tuesday's highly anticipated CPI report could reignite fears of a rate hike by the Federal Reserve in a manner that rattled the markets last year. This would not be welcome in the market, which is already suffering from a severe anxiety attack in the wake of the SVB financial crisis last week.
    Confusion and uncertainty
    Traders were warily watching for any signs of contagion in and outside the financial sector in the wake of the SVB woes, which became the most significant collapse of a US financial institution in more than a decade, and the second regional lender to fall apart this week after Silvergate announced Crypto-focused Capital Corp. announced plans to wind down operations and voluntarily liquidate its bank.
    “There is uncertainty surrounding the inflation report, with a lot of confusion surrounding the Silicon Valley bank failure, which it fears could turn into a bigger problem,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, adding that “the market is dealing with confusion.” and uncertainty in a very short time frame.”
    In addition, investors are increasingly concerned that the Fed's anti-inflation campaign, which is seeking to end the era of cheap money, has revealed cracks in the economy that could widen if interest rates are raised further.
    Interest and
    returns On Friday, the markets seemed to lower their expectations about the Fed’s tightening, with a 40% chance that the latter would raise interest rates by 50 basis points at the March 21-22 meeting, and these possibilities grew to about 70% until Thursday. But it fell, on Friday, after the employment data. Some facts have been revealed about the scale of the US banking sector's problems. This is according to the CME Financial Group.
    Late Friday, yields on two-year US Treasury bonds, which closely track Fed policy expectations, were on track for their biggest two-day drop since September 2008.
    Interest rate expectations could change dramatically again if the February CPI report comes out higher than the 6% annual increase expected by analysts polled by Reuters. It is worth noting that the upcoming consumer price report will be followed by more inflation data represented by the producer price index the next day.
    Focus on inflation
    While moderating annual inflation from a peak of 9% last year to current 6% levels was "an easy step," moving from 6% to 3% will be a more difficult path, according to John Lynch, chief investment officer at Comerica Wealth. Management.”
    On average, markets experienced more volatile periods with CPI readings last year; The S&P moved an average of 1.8% up and down, versus an average daily move of 1.2% in both directions overall in that timeframe.
    In the middle of last Friday, volatility intensified, and the S&P moves indicated that the release of consumer price data would move the index by 1.8% in either direction in the hour following the release, according to Optiver estimates.
    The fear gauge
    Meanwhile, the so-called “fear gauge” on Wall Street rose; The Cboe Volatility Index hit its highest level since late October amid a broad sell-off in stocks.
    In addition to signs of declining inflation, the fact that the SVB issue has subsided and has not spread to the broader banking sector can reassure investors. In this regard, James Ragan, director of wealth management research at DA Davidson, said: “If the banks announce that their finances are in good shape and they are not exposed to such problems, it may stabilize the market a bit.”
    The most important economic events for the current week, according to the eastern time in the United States
    https://altaghier.tv/2023/03/12/%d9%85%d8%ab%d9%84%d8%ab-%d8%a7%d9%84%d9%81%d8%a7%d8%a6%d8%af%d8%a9-%d9%88%d8%a7%d9%84%d8%a8%d9%86%d9%88%d9%83-%d9%88%d8%a7%d9%84%d8%aa%d8%b6%d8%ae%d9%85-%d9%8a/
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