Traders on the NYSE, September 27, 2022.
Source: NYSE
Here are the most important news items investors need to start their trading day:
1. Search for the bottom
For a while, it looked like hopes for the US stock market had fallen as deeply as possible this year. Since June, stocks have leveled off. We are now in the early days of fall and the S&P 500 is about to hit a new 2022 low on Tuesday. There may also be more sales. The Fed is sticking to its aggressive anti-inflation plan, while the upcoming round of corporate earnings could offer some more dire news, even as companies have lowered expectations. Stock futures contract seesaw on Wednesday morning following a new development from the UK (see below).
2. Bank of England participates
Analysts say the Bank of England may need to raise interest rates more aggressively following market turmoil on Monday morning.
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The Bank of England is intervening in the market turmoil caused by the new UK government’s heavy tax-cutting economic plan. The central bank said on Wednesday that it will delay its plan to start selling bonds, known as backend bonds in the UK, and begin a temporary program to buy long-term debt. The Bank of England said: “If this market turmoil continues or worsens, there is a significant risk to the UK’s financial stability. “This will lead to unwarranted tightening of financial conditions and a reduction in credit inflows into the real economy.” The British pound, which has fallen sharply against the dollar, briefly appeared on this news. Heifer production is on track to post their biggest monthly gain in 65 years. Prime Minister Liz Truss’ new government tax cut plan has confounded investors, officials and experts, and even provoked a backlash. from the International Monetary Fund.
3. Ian scrolls in
Hurricane Ian approaches the west coast of Florida after passing 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 Category 4 storm as it was about to crash into the Tampa region on Florida’s west coast. The center of the storm was about 75 miles southwest of Naples, Florida, at 5 a.m. ET Wednesday, according to the National Hurricane Center. Ian left Cuba without electricity before arriving in Florida. The storm’s approach prompted some authorities and companies to take down hatches. Walt Disney World and Universal Studios Orlando say they will close their park for at least a few days, while Amazon says it will closed some of its warehouses in the area. Tampa and Orlando airports Also suspended.
4. Important moment for Ukraine
A view shows the Russian flag flying over a 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 region Zaporizhzhia, Ukraine on September 26, 2022.
Alexander Ermochenko | Reuters
Referendums in Russian-occupied regions of Ukraine have shown widespread support for separation and joining Russia. This was a predictable outcome, according to analysts, because the votes were hastily arranged after Ukraine’s blitzkrieg to retake large swaths of its territory – and because because they were rigged, according to analysts. That’s a worrying development towards Ukraine and Western nations in general, since Russian leader Vladimir Putin and his government said they would take any measure to protect Russian lands. “As for the risk of Russia using this vote and subsequent annexation of territories as a pretext for nuclear attacks – we are aware of this risk, we understand that it is real. “, Yuriy Sak, adviser to Ukraine’s Defense Minister, told CNBC. There are also worries that the United States and Europe can’t deliver weapons to Ukraine fast enough. NATO held a special meeting on Tuesday to discuss the issue. “Unless we have new production, which takes months to ramp up, we won’t be able to supply Ukraine,” one expert told CNBC.
5. GM brake hard when back to the office
General Motors CEO Mary Barra speaks to reporters as she awaits the arrival of President Joe Biden at the media day of the North American International Auto Show in Detroit, Michigan, September 14, 2022.
Rebecca Cook | Reuters
Many companies are asking employees to return to the office after years of working remotely. Fallopian tube infections are declining, and treatments and vaccines are more widely available. But when Synthetic engine told his company employees on Friday that they would have to return to the office at least three days a week, things did not go well. So on Tuesday, the company bring it back with another note to staff. After all, it’s hard to undo two and a half years of habits. “Our plan has always been, and remains, to collaborate on designing a solution that best balances the needs of your business with the needs of each of you,” the memo signed by the CEO Mary Barra and other executives.
– 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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