{"id":1665162,"date":"2022-09-29T16:52:36","date_gmt":"2022-09-29T20:52:36","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665162"},"modified":"2022-09-29T16:53:13","modified_gmt":"2022-09-29T20:53:13","slug":"pick-your-poison-wall-street-sell-off-resumes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pick-your-poison-wall-street-sell-off-resumes\/","title":{"rendered":"\u2018Pick-your-poison\u2019: Wall Street sell-off resumes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpick-your-poison-wall-street-sell-off-resumes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665162&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Lawrence Delevingne<\/p>\n<p>(Reuters) \u2013     Investors added another cycle of selling on Thursday as the dollar barely eased its stranglehold on currency markets, recession fears sapped stocks and bonds suffered more interest rate pain.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>After a partial rebound on Wednesday, U.S. stocks fell sharply. The Dow Jones Industrial Average fell 1.5%, the S&#038;P 500 lost 2.1% to a new low for 2022, and the Nasdaq Composite dropped 2.8%, weighed down by big technology names such as Apple Inc and Amazon.com Inc. [.N] <\/p>\n<p>European stocks also suffered. The STOXX 600 share index was down 1.67%, even as the euro and the pound, hammered over the last week by UK debt concerns, recovered some ground, gaining 0.6% and 1.7%, respectively. [.EU][\/FRX]\n<p>China currency intervention talk was gathering momentum too, while Europe\u2019s government bond markets were braced for the highest German inflation reading since the 1950s. <\/p>\n<p>Gilt selling also resumed a day after the Bank of England had dramatically intervened to try and quell the storm surrounding the British government\u2019s new spending plans. [GVD\/EUR]\n<p>\u201cIt\u2019s a pick-your-poison collection of bad news for investors,\u201d Sean Sun, portfolio manager at Thornburg Investment Management in Santa Fe, New Mexico, said in an email. <\/p>\n<p>\u201cFrom strong jobs data pushing the Fed to be more hawkish to the turmoil in the entire UK stock and bond markets to China intervening to prop up the yuan, with increasing geopolitical issues investors are left few places to hang their hats.\u201d<\/p>\n<p>UK SEEKS STABILITY<\/p>\n<p>The UK 10-year gilt yield, which drives Britain\u2019s borrowing costs, rose about 8 basis points (bps) to 4.214% after falling almost 50 bps the day before due to the BoE\u2019s sudden intervention, although the 30-year yield being targeted by the central bank was little changed at 3.96%.<\/p>\n<p>Agnes Belaisch, Barings Investment Institute\u2019s chief European strategist, said \u201cthe market wouldn\u2019t mind some stability,\u201d as \u201cit has become a little bit unpredictable.\u201d<\/p>\n<p>She said investors were now seeing \u201cincoherence\u201d in Britain with government spending as the Bank of England tries to rein in inflation, while everywhere else the focus is on how high central banks are prepared to go with interest rates.    <\/p>\n<p>British Prime Minister Liz Truss defended her new economic program that has sent sterling to a record low this week and left the UK\u2019s borrowing costs close to Greece\u2019s \u2013 saying it was designed to tackle the difficult situation Britain was now in. <\/p>\n<p>\u201cWe are facing difficult economic times,\u201d Truss, who only took over as prime minister this month, said on local BBC radio. \u201cI don\u2019t deny this. This is a global problem. But what is absolutely right is the UK government has stepped in and acted.\u201d <\/p>\n<p>The CBOE VIX Index, a measure of Wall Street\u2019s volatility expectations, jumped 6.5%, although still off levels earlier in the week.<\/p>\n<p>Graphics: UK 30-year bond yields see record moves after BoE intervention \u2013 https:\/\/graphics.reuters.com\/BRITAIN-ECONOMY\/znvneybqopl\/chart.png<\/p>\n<p>GETTING INFLATION IN CHECK<\/p>\n<p>Zooming back out, it was still about the dollar which has crushed currencies virtually everywhere this year, as well as the impact of Russia\u2019s invasion of Ukraine.<\/p>\n<p>Speaking with reporters in London on Wednesday, veteran Federal Reserve policymaker Charles Evans gave no indication that any of the recent foreign exchange and bond market drama would blow the U.S. central bank off its rate hike course. <\/p>\n<p>\u201cWe just really need to get inflation in check,\u201d Evans said, backing lifting the Fed\u2019s rates \u2013 now at 3% to 3.25% \u2013 to a range of 4.5% to 4.75% by the end of the year or March.<\/p>\n<p>Federal Reserve Bank of Cleveland President Loretta Mester echoed that on Thursday, saying she did not see distress in U.S. financial markets that would alter the Fed\u2019s campaign. <\/p>\n<p>Such comments helped push the yield on U.S. government bonds. The yield on 10-year Treasury notes was up 6.5 basis points to 3.772%; 30-year Treasury bonds rose 2.9 basis points to 3.710%. <\/p>\n<p>Thursday\u2019s currency moves saw the U.S. dollar index, which measures the currency against its peers, hang around its recent 20-year high again, down about 0.4%, having had its worst session in 2-1\/2 years on Wednesday. [\/FRX]\n<p>\u201cDespite substantial appreciation year-to-date, we see little pressure for policymakers to respond to dollar strength for now,\u201d Morgan Stanley strategists wrote in a note released Thursday. <\/p>\n<p>\u201cTrade-weighted dollar strength is not excessive, in sync with broadly tighter financial conditions and in line with Fed objectives, though inflation benefits are small.\u201d <\/p>\n<p>Overnight, China\u2019s yuan had fallen again too, although it stayed just off recent post-financial crisis lows, as China\u2019s central bank said stabilising the foreign exchange market was its top priority and on reports of potential FX intervention too. [CNY\/]\n<p>MSCI\u2019s broadest index of Asia-Pacific shares outside Japan ended the day virtually flat, although Japan\u2019s Nikkei did manage a near 1% rise. [.T]\n<p>Weekly jobless claims data bucked expectations with an unexpected fall showing how tight the U.S. labour market remains. U.S. GDP fell at an unrevised 0.6% annualised rate last quarter, the government said in its third estimate of GDP. The economy contracted at a 1.6% rate in the first quarter.    <\/p>\n<p>Oil prices were ticked down, still weighed on by the stronger dollar and weak economic outlook, even as OPEC+ have begun discussions about an oil output cut. <\/p>\n<p>U.S. crude fell 1.1% to settle at $81.23 per barrel and Brent ended at $88.49, down 0.9% on the day.<\/p>\n<p>Goldman Sachs cut its 2023 oil price forecast earlier this week, citing expectations of weaker demand and a stronger U.S. dollar, but said global supply issues reinforced its long-term view that prices could rise again. <\/p>\n<p>The strong dollar also helped keep gold prices down, with looming rate hikes also a headwind. Spot gold added 0.1% to $1,660.24 an ounce. U.S. gold futures fell 0.02% to $1,660.00 <\/p>\n<p>Graphics: Major currencies vs. the dollar \u2013 https:\/\/graphics.reuters.com\/BRITAIN-MARKETS\/jnvweqwekvw\/chart.png<\/p>\n<p> (Reporting by Lawrence Delevingne in Boston and Marc Jones in London; Editing by Andrew Heavens, Jonathan Oatis and Marguerita Choy)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/wall-street-sell-off-accelerates\/attachment\/illustration-shows-u-s-dollar-banknotes-12\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S0O2-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S0O2-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/wall-street-sell-off-accelerates\/attachment\/economy-illustrations-in-london-3\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S099-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S099-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/wall-street-sell-off-accelerates\/attachment\/illustration-shows-british-pound-banknotes-3\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S027-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S027-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/wall-street-sell-off-accelerates\/attachment\/a-man-on-a-bicycle-stands-in-front-of-an-3\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S026-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S026-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Lawrence Delevingne (Reuters) \u2013 Investors added another cycle of selling on Thursday as the dollar barely eased its stranglehold on currency markets, recession fears sapped stocks and bonds suffered<\/p>\n","protected":false},"author":66,"featured_media":1889360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1665162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/www.oann.com\/business\/pick-your-poison-wall-street-sell-off\/?utm_source=rss&utm_medium=rss&utm_campaign=pick-your-poison-wall-street-sell-off","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1665162"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665162\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1889360"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1665162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1665162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1665162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}