GLOBAL MARKETS-Stocks slide, dollar up as market eye central bank rate policies – Yahoo Finance

(Adds close of U.S. markets)
Global recession talk rattles investors
Dollar gains against euro, yen, sterling
Treasury yields slip on slower Fed rate hike hopes
Oil prices slump on economic jitters
By Herbert Lash and Alun John
NEW YORK/LONDON, Dec 6 (Reuters) – Global stocks posted a third straight day of losses and the dollar rose on Tuesday as the market weighed how long the Federal Reserve would keep interest rates high and "restrictive" to the U.S. economy.
Stocks on Wall Street fell, with all sectors in the red with the exception of utilities. The major bourses in Europe also declined as concerns mounted about a global slowdown before a raft of major central bank rate decisions next week.
MSCI's all-country world index, a gauge of stock performance in 47 countries, fell 1.26% to mark its third down day in a row after hitting a three-month high last week.
The dollar gained against the euro, yen, British pound and Canadian dollar, among other major currencies.
Treasury yields fell, but more at the long end of maturities than the short end, which deepened the inverted yield curve, a market indicator of a looming recession. The gap between yields on two- and 10-year notes was -83.7 basis points.
The market needs to recognize that a recession most likely is a reality, not just a hypothetical scenario, and that valuations need to go lower, said Jason Pride, chief investment officer of private wealth at Glenmede in Philadelphia.
"During recessions, markets on average price at a discount to fair value, which they have not yet done," Pride said. "There is not a single instance in which a market has bottomed before the recession started."
Data released on Monday showing U.S. services industry activity unexpectedly picked up in November and last week's robust U.S. payrolls report have raised doubts about how soon the Fed might ease monetary policy. The Fed aims to slow growth by reducing credit and money available for banks to lend.
Futures show the market expects the Fed's peak terminal rate to rise to 4.974% next May, but by December 2023 to have fallen to 4.534% on speculation the Fed will cut rates to help the economy rebound from an expected slowdown.
"We believe we hit the lows already and it's not going to be a straight line up, but a choppy road ahead," said King Lip, chief investment strategist at BakerAvenue Wealth Management in San Francisco.
"We're in the minority in terms of our forecast because a lot of the colleagues we've been speaking to are much more pessimistic," he said.
Among the biggest drags on the benchmark S&P 500 index was Meta Platforms Inc after European Union regulators ruled its Facebook and Instagram units should not require users to agree to personalized ads based on their digital activity.
Wall Street also was led lower by other megacap stocks, including Microsoft Corp and Inc.
The Dow Jones Industrial Average fell 1.03%, the S&P 500 slid 1.44% and the Nasdaq Composite dropped 2%. In Europe, the STOXX 600 index closed down 0.58%.
The dollar rose as investors waited for next week's expected 50 basis points rate hike by the Fed.
The euro fell 0.24% to $1.0466, while the yen weakened 0.21% at 137.03 per dollar.
Euro zone government bond yields fell after two European Central Bank officials signaled inflation and rates may be close to peaking in the run-up to a raft of major central bank decisions.
The ECB, the Bank of England and the Fed all meet next week to discuss monetary policy. The Reserve Bank of Australia on Tuesday offered a glimpse of decisions to come after raising interest rates to decade highs and sticking with a prediction of more hikes ahead.
All eyes will be on the release next Tuesday of November's U.S. consumer price index data, which will provide insight into the pace of inflation.
The yield on U.S. 10-year notes fell 6.6 basis points to 3.533%.
Oil prices fell in a volatile market as the dollar stayed strong and economic uncertainty offset the bullish impact of a price cap placed on Russian oil and the prospects of a demand boost in China.
On Monday, crude futures recorded their biggest daily drop in two weeks.
U.S. crude futures fell $2.68 to settle at $74.25 a barrel, while Brent settled down $3.33 at $79.35.
U.S. gold futures settled up 0.1% at $1,782.40 an ounce.
(Reporting by Herbert Lash, additional reporting by Anshuman Daga in Singapore and Alun John in London; Editing by Jonathan Oatis, Nick Zieminski and Deepa Babington)
Related Quotes
The billionaire entrepreneur fears that the economic downturn will become worse if this decision is made.
Cathie Wood makes big bets on potential huge winners. But Ark Invest's top 10 holdings, including Tesla and Roku, have tumbled in 2022.
Think price levels will be back to normal soon? Think again.
Millennials have given up on stocks. Is it time to follow suit?
(Bloomberg) — It’s the week everyone’s been waiting for. With the release a key measure of inflation, the Federal Reserve interest-rate decision and Chair Jerome Powell’s comments afterward, investors are hoping to finally have a clear view of what’s ahead for a beaten-down stock market and economy in 2023.Most Read from BloombergFed’s Message That Rates Will Stay on Hold for ‘Some Time’ Clashes With 2023 Rate-Cut BetsElon Musk Steps Up Attacks on Twitter’s Former Safety HeadChina’s Top Medical
As we head into the final stretch of 2022, with less than three weeks until we turn the page to 2023, the markets and the economy are sending a series of mixed signals. Stocks have leveled out somewhat over the past month, with reduced volatility compared to the previous six months. At the same time, investors must consider the economic signals – especially persistently high inflation and uncertainty over the Federal Reserve’s interest rate decision this week. It’s a difficult environment for ma
In the last year, many NVIDIA Corporation ( NASDAQ:NVDA ) insiders sold a substantial stake in the company which may…
Few companies will have the longevity to deliver strong returns for decades, but these three could be among them.
Canoo (NASDAQ: GOEV) and Nikola (NASDAQ: NKLA) are both electric vehicle makers that went public by merging with special purpose acquisition companies (SPACs) in 2020. Canoo's stock hit an all-time high of $22 per share in December 2020, but it now trades at about $1. Canoo produces electric delivery vehicles.
Investors who bet on a decline in the electric vehicle maker's stock price in the short term have won the jackpot.
This past year has been a fascinating one for the oil market. Despite all that volatility, most oil stocks have surged this year as investors realize that fossil fuels remain vital to fueling the economy. Here's why they think investors should scoop up shares of Kinder Morgan (NYSE: KMI), Phillips 66 (NYSE: PSX), and Chevron (NYSE: CVX) before the end of this year.
This bank stock was beaten down this year for understandable reasons. But the selling effort went too far.
Investors should always remain aware of their risk tolerance, which becomes increasingly important as your position sizes grow and the stakes become larger. Technology conglomerate Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) dominates the internet; its Google search engine conducts 92% of the world's internet searches, a fantastic stat because it shows that no company on earth has been able to set up a notable competitor in any market. Alphabet generates tons of profitable revenue by selling ads to its internet audience; the company's done $282 billion in revenue over the past year, and $62 billion of that (22%) becomes free cash flow, profits that Alphabet can add to its financial war chest.
The market rally faces big tests with the upcoming CPI inflation report and Federal Reserve meeting. Here's what to do.
The recent price decline of 4.0% in Intel Corporation's ( NASDAQ:INTC ) stock may have disappointed insiders who bought…
While ChatGPT has shown many people how powerful AI can be, these stocks utilize it to its full potential.
These bargain-basement-priced growth stocks are ripe for the picking following a 38% peak decline in the Nasdaq Composite.
Investing involves a series of constant tradeoffs and careful planning, and there is no one-size-fits-all solution. Different investments will provide different potential payouts over time. So when looking at how much interest you can earn with $200,000, the answer is … Continue reading → The post How Much Interest Can I Earn On $200,000? appeared first on SmartAsset Blog.
In this article we present our list of 11 Undervalued Canadian Stocks To Buy Now. Click to skip ahead and see the top 5 Undervalued Canadian Stocks To Buy Now. Gildan Activewear Inc. (NYSE:GIL), Open Text Corporation (NASDAQ:OTEX), and Bausch Health Companies Inc. (NYSE:BHC) are some of the most undervalued Canadian stocks to buy now according […]
Early retirement is a dream for many — that can turn into a nightmare.


Leave a Reply

Your email address will not be published. Required fields are marked *