Market Outlook 🚀 - US Futures Rise

US Stocks hit new 2022 low

Inside.com Part of   Network September 30, 2022

US Markets Markets were up slightly overnight after a significant sell-off on Thursday that sent stocks to new 2022 lows. The decline was primarily motivated by concerns about future Federal Reserve interest rate hikes and their potential impact on equities.  Apple was one of the biggest losers as it fell 4.9%, with Bank of America downgrading the stock due to reports that demand for the new iPhone 14 is lower than previously thought.  The current 10 Year U.S. Treasury yield is set at 3.78930% Dow Jones  29,225.61 -1.54% S&P 500  3,640.47 -2.11% Nasdaq  10,737.51 -2.84% Russell 2000 1,674.93 -2.35% *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.

Canadian Markets Canada Mortgage & Housing Corp. has altered its forecasts for the Canadian housing market and now believes that house prices may fall as much as 15%.  CMHC predicted in July that house prices would fall 5% in the next year but now forecasts a 10% to 15% drop.  The change in projections is due to the aggressive interest rate hikes by the Bank of Canada, including a 1 percentage point hike in July, which was the largest since 1998.  Variable rate mortgages have increased from 2% in February 2022 to 5% in September 2022.  TSX  18,441.84 -1.11% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

European Markets European stocks were down on Thursday as the spark provided to markets by the Bank of England on Wednesday faded, and the negative market sentiment returned.  The Stoxx 600 finished down 1.8%, falling straight from the opening bell.  Automotive stocks led losses, losing over 5% on the day.  Basic resource stocks were the only sector of the Stoxx 600 to finish in the green after gaining 0.5%.  Euro STOXX 50  3,279.04 -1.69% UK (FTSE 100)  6,881.59 -1.77% Germany (DAX)  11,975.55 -1.71% France (CAC 40) 5,676.87 -1.53% *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Asian Markets Shares in Asia are down early on Friday, which is the final trading day for Q3 2022.  The negative movements in Asia are a response to the decline in U.S. stocks.  New data from China shows that factory activity expanded from July to August. Analysts had been expecting a decline.  While almost all major markets in Asia are down, stocks in mainland China rose in response to the positive economic data.  S&P Asia 50 3,823.93 -1.15% Japan (Nikkei 225) 26,017.83 -1.53% South Korea (KOSPI) 2,164.95 -0.28% China (Hang Seng) 17,056.05 -0.64% India (SENSEX) 56,409.96 -0.33% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices were down slightly as investors hold their positions ahead of next week's OPEC meeting.  Brent crude was down 0.9%, while U.S. West Texas Intermediate crude lost 1.1%.  Some analysts think that Russia will attempt to convince other OPEC+ nations to cut oil output for Q4 2022.  Analysts expect that travel during a forthcoming national holiday in China will be at the lowest level in a decade due to Covid-related restrictions.  Oil (NYSEARCA:OIL) 28.94 -0.37% Gold (NYSEARCA:GLD) 154.66 -0.02% Silver (NYSEARCA:SLV) 17.37 -0.46% Corn (NYSEARCA:CORN) 26.77 0.00% Lumber (NASDAQ:WOOD) 64.69 -2.16% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.

Currencies The U.S. Dollar Index lost 0.4% on Thursday.  The British Pound continued its rally as the Bank of England purchased bonds to prop up the currency after it hit a record low earlier this week.  The pound has gained 7% in the 48 hours since the Bank of England announced it would be intervening in markets.  The Euro was also up despite economic activity and consumer sentiment falling in the Eurozone.  UK(GBP) £0.90 -3.42% Europe (EURO) €1.02 -2.16% Canada (Canadian Dollar) $1.37 -0.16% Japan (Yen) ¥144.72 0.01% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Cryptocurrency Bitcoin's price was up slightly on Thursday and its movements were broadly consistent with minimal volatility in both price and trading volumes. Ethereum was sold off early in the day before recovering some of its losses later in trading.  The cryptocurrency market as a whole was down ~1.5% on the day.  Data shows that cryptocurrency miners have largely left some European countries for Norway and Sweden as they seek to save on the costs of cooling and electricity.  Bitcoin $19,389.60 1.55% Ethereum $1,327.61 -0.62% Litecoin $53.73 0.84% Bitcoin Cash $117.64 2.93% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Liam Gill is a founder, lawyer and investor. He previously founded Fumarii Technologies, which became a top 20 ranked cloud computing service (Yahoo Finance! 2019) valued at over $30M. He holds an LLB Laws (UK), MSc Management and Master of Laws and currently practices law in Vancouver, Canada.   Editor Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

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