Markets

The Fed doesn’t need to go “full Volcker” on raising interest rates to combat inflation, according to Fundstrat’s Tom Lee.Leading indicators suggest financial conditions are tightening and inflation is coming down, Lee said.”Compared to 1970s-1980s, today’s inflation is nascent,” Lee said, adding that inflation in 2022 is “hardly out of control.” Loading Something is loading.… Continue reading The Fed doesn’t have to go ‘full Volcker’ on inflation and any pivot on its rate hike policy could end the stock market’s downward spiral, Fundstrat says

The UK Chancellor of the Exchequer Kwasi Kwarteng is scheduled to meet with Wall Street execs, Wednesday.  Kwarteng is conducting outreach about the UK’s newly announced mini-budget, Bloomberg reported.  The pound dropped to a record low with investors spooked by the plan that includes £45 billion in tax cuts.  Loading Something is loading. The UK’s… Continue reading UK finance minister will meet with Wall Street banks after the newly unveiled mini-budget sparked panic in markets and sent the pound plummeting

The British pound could fall further and reach parity with the US dollar, according to hedge fund manager Crispin Odey.  “I don’t think you can start getting bullish on sterling,” the founder of Odey Asset Management told the Financial Times. His firm’s flagship European hedge fund is up about 145%, mostly after shorting government bonds… Continue reading Hedge fund manager who is up 145% this year says the British pound isn’t done falling after hitting record low

The US economy could be grappling with deflation in the next six months, Cathie Wood said Tuesday.  She warned the Fed could be underestimating demand destruction, meaning future rate hikes won’t be necessary. That could lead the central bank to pivoting from its rate hike policy soon.  Loading Something is loading. The US economy could… Continue reading The US economy could be grappling with deflation in the next 6 months, and the Fed could be forced to pivot in the face of demand destruction, ARK Invest’s Cathie Wood says

Growth in house prices slowed at the fastest rate on record in July, according to the S&P CoreLogic Case-Shiller index released Tuesday. House prices across the US increased by 15.8% in July over the same month last year. That rate was 18.1% in June.  Mortgage rates have jumped to more than 6% this year as… Continue reading Home-prices growth slowed by the most on record in ‘forceful deceleration’ in July, S&P Case-Shiller says

Lumber fell 20% over a four-day period ending on Monday, hitting its lowest level of 2022.The essential building commodity has been rocked by soaring mortgage rates and a slowing housing market.The average 30-year fixed mortgage rate inched closer to 7%, according to Mortgage News Daily. Loading Something is loading. Surging mortgage rates and a slow… Continue reading Lumber prices fall to a new 2022 low as housing market cools and mortgage rates approach 7%

The pound after the Bank of England said it’s closely monitoring financial markets.  The BoE didn’t say it would take emergency action to stem the decline of the pound, which hit a record low earlier Monday.    The pound fell by nearly 2% after the statement but didn’t return to record lows.  Loading Something is… Continue reading The pound falls again versus the dollar after the Bank of England says it’s monitoring financial markets following the currency’s slide to a record low

Russian crude flows to Asian buyers hit their highest levels in five weeks, Bloomberg data shows.  In the week leading up to September 23, the four-week average hit 1.79 million barrels per day, up from 1.74 million barrels per day in the week leading up to September 16.  Europe’s sanctions on Russian crude are set… Continue reading Russian crude heading to Asia hits a 5-week high as looming European sanctions inch closer