Stocks have fallen for the third consecutive day since Federal Reserve Chairman Jerome Powell gave a brief but tough speech in Jackson Hole. Bank of America’s equity derivatives team says equities still underestimate policy risk.
“The Fed’s fight against inflation through financial conditions means that risk assets will be forced higher, allowing for more aggressive rate hikes (like the Fed puts giving way to short-term Fed calls). ) and thinks there’s still plenty of room in stocks when investors come back from Labor Day [volatility] to keep up with stress levels in other asset classes,” they say.
But perhaps the more interesting element in their latest analysis concerns China. After all, the world’s second-largest economy is easing monetary policy, perhaps slightly easing regulatory reins.
In addition to being in a different cycle, there is also the issue that emerging market equities are not loved at the moment. The ratio of emerging market stocks to U.S. stocks is now near an all-time low.
What’s driving the emerging market breakout? “We’re hearing that investors are waiting for US interest rates to rise and the US dollar to buy in earnest,” says the BofA team. Not yet, but it could happen in the fourth quarter. 2023 deals could be long-term for emerging markets, they say.
Naturally, equity derivatives strategists have some option plays in mind to start positioning the turn against the risk of premature or simply failing. One includes a call to the iShares MSCI Emerging Markets ETF EEM.
outperforming the S&P 500 SPX,
Another is the call spread collar involving the Chinese Internet ETF KWEB.
market
US stock futures ES00, after the S&P 500 fell 5% over the past three days of trading
NQ00,
Altitude. 10 year government bond yield TMUBMUSD10Y,
increased to 3.13%. Gold GC00,
and oil CL.1,
Futures fell.
Buzz
Cleveland Fed President Loretta Mester said she doesn’t expect the Fed to cut rates next year and supports cuts of more than 4%. According to her newly designed ADP Employment Survey, private sector employment reports increased him by 132,000 and annual income increased him by 7.6%. The Chicago PMI report will be available shortly after opening.
computer manufacturer HP HPQ,
reported lower-than-expected revenue for Seagate Technology STX in the third quarter.
Earnings alert, Calvin Klein parent company PVH PVH,
Said it would cut earnings forecasts and cut jobs
Bed Bath & Beyond BBBY,
Shares plunged in premarket trading as it said it could sell 12 million shares and close 150 stores.
BYD1211,
Hong Kong stocks crash after Warren Buffett’s Berkshire Hathaway BRK.B.
Sold $46 million in stock.
Russia has launched what it said was a temporary suspension of gas to Europe via the Nord Stream 1 pipeline.
best web
The Justice Department claims documents in President Trump’s Mar-a-Lago were moved and hidden because the United States asked for them.
As the world remembers the death of the last leader of the Soviet Union, a Russian journalist recalls Mikhail Gorbachev’s famous Pizza Hut ad.
There is growing evidence that COVID-19 makes people sicker.
top ticker
These are the most active stock market tickers on MarketWatch as of 6am ET.
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ticker |
Security name |
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Bibi, |
Bed Bath & Beyond |
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TSLA, |
Tesla |
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GME, |
game stop |
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AMC, |
AMC Entertainment |
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monkey, |
AMC Entertainment Preferred Stock |
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TWTR, |
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AAPL, |
apple |
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Nio, |
Nio |
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AMZN, |
Amazon.co.jp |
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bee bee, |
best buy |
chart
Sprot
Let’s see how an investment fund can change the demand for the underlying asset. Since the launch of the Splott Physical Uranium Trust UUT, the spot price of uranium has been on an upward trend,
That said, the achievement is also consistent with a global move towards deglobalization and a severe shortage of other energy forms due to the sanctions imposed on Russia for its invasion of Ukraine.
random read
The controversy involving France, BBQgate.
The world record for the longest cucumber has been set.
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