- Trading
- Trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Volume rebates
- Open account
- Try free demo
- Platforms & tools
- Platforms & tools
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- MetaTrader copy trader
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- PAMM
- Premium trading tools
- Premium trading tools
- Tools overview
- Trading central
- VPS
- Genesis
- Autochartist
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Courses
- Courses
- Introduction to forex
- First steps in forex
- Next steps in forex
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Trading
- Trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Volume rebates
- Open account
- Try free demo
- Platforms & tools
- Platforms & tools
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- MetaTrader copy trader
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- PAMM
- Premium trading tools
- Premium trading tools
- Tools overview
- Trading central
- VPS
- Genesis
- Autochartist
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Courses
- Courses
- Introduction to forex
- First steps in forex
- Next steps in forex
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Home
- News & Analysis
- Economic Updates
- US equities decline amid global inflationary headwinds as yields and the Dollar jump.
- Home
- News & Analysis
- Economic Updates
- US equities decline amid global inflationary headwinds as yields and the Dollar jump.
News & AnalysisNews & AnalysisUS equities decline amid global inflationary headwinds as yields and the Dollar jump.
20 October 2022 By Lachlan MeakinUS stocks broke a two-day winning streak with the major indexes finishing moderately lower as global inflation fears lingered after both Canada and the UK CPI figures came in hot, showing signs that the inflation peak may not yet be in.
With risk aversion back (for the day at least) Bonds were sold off (Price down, yields up) with the US 10 year yield soaring back above 4.00%, it’s highest since June 2008. Higher US rates also saw the USD surging, with the Dollar Index topping 113
CHF and JPY were the underperformers as rising US rates, increasing already large rate differentials with these two low yielding currencies. The USDJPY is within touching distance of the psychological 150 mark as traders continue to test the Bank of Japan, almost daring them to repeat their September and likely earlier in October interventions.
One market bucking the risk off narrative was oil with US crude bouncing off support and rallying over 2% after an unexpected draw in crude stocks, despite an announcement from the White House that 15 million barrels would be sold from the SPR.
In today’s economic announcements the Employment report out of Australia will be closely watched for clues as to the RBA’s next move after their “dovish” hike at the last meeting. With rate markets fully pricing in a 25bp hike at their November meeting, a strong report could see odds jump for a return to a 50bp hike and see FX and equity markets re-price accordingly.
Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
Next Article
China’s slow growth a worry for Australia?
China, Australia’s savior during the 2009 Global Financial Crisis may not provide the same security in what may be an impending recession. This does not bode well for the Australian economy which so far has performed relatively well in the recent volatile market conditions. The ASX which has been resilient in the global sell off, on the back of i...
October 21, 2022Read More >Previous Article
Is Credit Suisse running out of Credit?
This year has not been kind to the domestic and global economy. The financial woes keep rolling in, this time an old issue has rear its head with one ...
October 20, 2022Read More >News and Analysis
Join our mailing list to receive market news and monthly newsletters, delivered directly to our inbox.
- Trading