Traders on the floor of the NYSE, September 27, 2022.
Source: NYSE
Here are the most important information investors need to start their trading day:
1. Looking for a fund
For a while, it looked like US stock markets had fallen as far as they could go this year. Since June, stocks have been falling. We are now in the early days of fall, and the S&P 500 just hit a new 2022 low on Tuesday. There could also be more sales to come. The Fed is sticking to its aggressive anti-inflation plan, while the next batch of corporate earnings could offer more dire news, even as companies have lowered their expectations. Equity futures tipped Wednesday morning on a new development out of the UK (see below).
2. The Bank of England gets involved
Analysts expect the Bank of England to raise interest rates more aggressively after Monday morning’s market turmoil.
Sopa Pictures | Light flare | Getty Images
The Bank of England intervenes in the market chaos triggered by the new British government’s new economic tax cut plan. The central bank said on Wednesday it would suspend plans to start selling bonds, also known as gilts in the UK, and launch a temporary program to buy longer-term debt. “If the dysfunction of this market continues or worsens, there would be a significant risk to the financial stability of the United Kingdom,” the Bank of England said. “This would lead to an unwarranted tightening of financing conditions and a reduction in the flow of credit to the real economy.” The pound, which had fallen drastically against the dollar, briefly appeared on the news. Gilt yields are on track to post their biggest monthly rise in 65 years. New Prime Minister Liz Truss’ government’s tax cut plan has intrigued investors, officials and pundits, even drawing backlash from the International Monetary Fund.
3. Ian arrives
Hurricane Ian tracks toward the west coast of Florida after passing through Cuba in a composite image from the National Oceanic and Atmospheric Administration’s (NOAA) GOES-East weather satellite on September 27, 2022.
NOAA | via Reuters
Ian became a Category 4 hurricane as it prepared to make landfall in the Tampa area on Florida’s west coast. The center of the storm was about 75 miles west-southwest of Naples, Fla., as of 5 a.m. ET Wednesday, according to the National Hurricane Center. Ian left Cuba without power before heading to Florida. The approach of the storm prompted several authorities and companies to batten down the hatches. Walt Disney World and Universal Studios Orlando said they would close their parks for at least a few days, while Amazon said it would close some of its warehouses in the area. Tampa and Orlando airports have also suspended operations.
4. Pivotal moment for Ukraine
A view shows the Russian flag waving in the square during a five-day referendum on the secession of the Zaporizhzhia region from Ukraine and its accession to Russia, in the Russian-controlled city of Melitopol in the Zaporizhzhia region , Ukraine on September 26, 2022.
Alexander Ermoshenko | Reuters
Referendums in Russian-occupied regions of Ukraine showed broad support for breaking away from and joining Russia. It’s a predictable result since the votes were hastily organized after Ukraine’s blitzkrieg to retake large swaths of its territory – and because they were rigged, analysts say. This is a troubling development for Ukraine and Western countries in general, as Russian leader Vladimir Putin and his government have said they will take all measures to defend Russian land. “Regarding the risk of Russia using these votes and the subsequent annexation of these territories as a pretext for nuclear strikes – we are aware of this risk, we understand that it is real,” Yuriy Sak told CNBC. , adviser to the Ukrainian Defense Minister. . There are also concerns that the United States and Europe may not be able to supply arms to Ukraine quickly enough. NATO held a special meeting on Tuesday to discuss the matter. “Unless we have new production, which takes months to ramp up, we won’t have the capacity to supply the Ukrainians,” an expert told CNBC.
5. GM puts the brakes on its return to the office
General Motors CEO Mary Barra speaks to reporters as they await the arrival of President Joe Biden during the North American International Auto Show media day in Detroit, Michigan on September 14 2022.
Rebecca Cook | Reuters
More and more companies are asking their employees to return to the office after years of working remotely. Covid infections are declining and treatments and vaccines are more widely available. But when General Motors announced to its employees on Friday that they should return to the office at least three days a week, it did not go well. So on Tuesday, the company came back with another note to employees. After all, it’s hard to undo two and a half years of routine. “Our plan has always been, and still is, to collaboratively design the solution that best balances the needs of the business with the needs of each of you,” reads the memo, which was signed by CEO Mary Barra and other leaders.
– CNBC’s Jesse Pound, Elliot Smith, Sarah Whitten, Annie Palmer, Leslie Josephs, Natasha Turak and Michael Wayland contributed to this report.
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