A look at the upcoming day in the US and global markets from Elon John.
US investors deserve some calm on Friday after a busy week for the markets, although if the experience of their European counterparts is something to go through, they may not have much luck.
The US data calendar for today is quiet, a relief at the end of the week that the Federal Reserve raised interest rates by 75 basis points, as expected, but shook markets with a sobering view, and the Japanese authorities made their first intervention in the foreign exchange market since 1998 to support the battered yen .
A public holiday in Japan on Friday, and the radio silence thus far, means that traders are hoping there will be no more news on this front today.
But market participants who are waking up in the US still have plenty to digest while eating breakfast from across the Atlantic.
British government bond yields rose by the most in a single day in 13 years, the pound fell to a 37-year low against the dollar, and stocks hit two-month lows after British Finance Minister Kwasi Quarting announced a series of tax cuts in a bid to boost growth.
Meanwhile, the euro fell across the channel to a 20-year low and the stock index fell to its lowest since November 2020 after data showed a slowdown in business activity across the eurozone in September. ()
Sharp (OTC:) Interest rates hikes this week in the US, Britain, Sweden, Switzerland and Norway – among other places – still support the risk-off sentiment, but the survey shows the bloc’s economy is likely to enter a recession. t help.
Looking at the US, S&P and Nasdaq futures are down more than 1%, while the two-year US Treasury yield has risen to 4.2570%, levels last seen in 2007.
Better buckle up, it doesn’t seem that today will provide the long-awaited relief.
It is quiet on the US data release front today.