Better-than-expected US retail sales didn’t please investors yesterday, as it fueled, again, inflation expectations. Higher inflation expectations fueled the hawkish Federal Reserve (Fed) expectations. And hawkish Fed expectations fueled recession worries – without however Fed being there to disperse cheap money.
Stock Market
US indices gave back gains yesterday. The S&P500 slid 0.83% and Nasdaq fell 1.54%.
Earnings
Sour earnings from Target, which highlighted that nice-to-have stuff like clothes and electronics didn’t sell well in the latest quarter, because of rising prices, didn’t help lift the investor mood.
US
Elsewhere, JP Morgan economists said they expect the US to enter a mild recession next year because of the rising rates and the tightening monetary conditions.
Global economy
Prospect of slower global economy, along with the de-escalation of geopolitical tensions on news that the rockets that hit Poland this week were from the Ukrainian defense, and probably landed in Poland by accident, pulled oil prices lower yesterday.
UK
In the UK, the government will announce its much-expected budget today. It won’t be pretty for people, but it should be ok for investors.
Crypto
In cryptocurrencies, the knock-on effects of FTX collapse continue to be felt but Bitcoin price remains resilient near $16K.
Watch the full episode to find out more!
- 0:00 Intro
- 0:31 Strong US retail sales dampen mood
- 1:22 Target disappointed
- 3:25 JP hinted at mild US recession, oil fell
- 5:44 UK Budget Day!
- 7:32 Crypto contagion continues, but Bitcoin resists
- 8:59 Gold hits long-term trend top
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
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