US unemployment rises unexpectedly

The US unemployment rate increased to 3.7% in 2022, above market predictions of 3.5% and reaching its highest level since February. While employment levels climbed by 442,000 to 158.7 million, the number of jobless individuals increased by 344 thousand to 6.014 million. Surprisingly, stocks continue to climb higher.

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China orders massive equity buying

China continued its lockdowns that appeared to hurt its economy as the rest of the world said goodbye to COVID. The nation’s real estate market and stock market suffered as a result. Currently, the government has directed state banks to buy equities to stop excessive selling.

Bearish sentiment rules markets

Rate hikes from all central banks worldwide are pushing markets lower. In the last week, DAX 40 fell by 4%, S&P 500 by 6%, and Dow Jones by 5%. Commodities followed, with WTI Crude Oil down 8% and natural gas down 11% for the week.

BoE raised rates by 50 bps

The Bank of England joined Federal Reserve and raised interest rates as expected by 50 bps to fight high inflation. This marks the 7th consecutive rate hike, pushing borrowing costs to the highest since 2008.

Fed increases rates by 0.75%

The Federal Reserve increased its federal funds rate by 0.75% to 3.25%, intensifying its fight against inflation. US markets staged another late-day reversal, giving up their gains. With the Fed’s most recent increase, the short-term benchmark rate is at its highest since 2008.

US Dollar Index at record highs

The dollar index reached 111, the highest point since June 2002. The crisis in Ukraine is expected to worsen as President Putin announced a partial military mobilization in Russia, and investors are fleeing for safety. At the same time, they wait for the FOMC decision later in the day.

Equities open lower due to fear

On Monday, European and American equities markets were poised to open lower as investors refrained ahead of a huge week for central bank decisions. This week is highlighted by Fed, which will likely deliver another supersized rate boost to manage soaring inflation.

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Nord Stream damaged & gas rises

Leaders in Europe thought the two explosions that destroyed the pipelines used to transport Russian natural gas to Europe were intentional. However, some officials accused the Kremlin of being behind the explosions, saying they were meant to be a warning to Europe. Meanwhile, EU gas is up 13% on Wednesday.

DAX hit 12,000 mark

European equities markets declined sharply, with the German stock index DAX hitting a two-year low of 12,000. The stock index is pressured by the hawkish monetary policy of central banks, which could draw DAX even lower.

Indian Rupee suffers losses

The Indian rupee hit a record low of 81.7 and is on track with the retreat of riskier currencies. This is due to recession fears and expectations of a hawkish Federal Reserve policy. Pressure on the rupee is also contributed to an increase in capital outflows from the country.

EU gas surges by 10%

After four straight days of losses due to concerns about future Russian supply, EU gas futures spiked 8% near €190. This may be due to the Nord Stream report of a pressure reduction at the two lines of Nord Stream and one line of Nord Stream 2.

MOEX continues to tumble

The ruble-based MOEX Russia dropped by 7% to about 1,925 on Tuesday, the lowest level in more than five years. MOEX is down 55% from its all-time high at 4,271.  Concerns about the worsening Russian-Ukrainian conflict and nuclear threats persist.

China orders massive equity buying

China continued its lockdowns that appeared to hurt its economy as the rest of the world said goodbye to COVID. The nation’s real estate market and stock market suffered as a result. Currently, the government has directed state banks to buy equities to stop excessive selling.

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USD/JPY tests previous highs despite negative sentiment
1.01%

USD/JPY tests previous highs despite negative sentiment

The US Dollar traded higher on Tuesday, boosted by the risk-averse sentiment in the markets.

Severe explosions damage Nord Stream pipelines

Swedish and Danish gauging stations massive underwater explosions where the Nord Stream pipeline subsequently started leaking gas.
S&P 500 bounces from a strong level
SP500
-1.03%

S&P 500 bounces from a strong level

Big banks are turning bearish on US stocks as the S&P 500 index dropped to its June lows.

First female Italian prime minister – who is Giorgia Meloni?

Giorgia Meloni is the first female and new prime minister of Italy. She is well-known for her right-wing activism. What is she planning?