Stock market shares

Stocks plunge, all the spotlight on the Fed

Stocks in the red today, with markets awaiting the words of Powell and other Fed officials for more details on the next monetary policy moves.
Central banks therefore remain the absolute protagonists of the stock markets, with investors interested in the end of rate increases, which however may not yet be so close.
Treasury yields and the dollar held above multi-week lows.
Stocks are losing money, with declines in energy and financial stocks eclipsing gains in technology stocks.
Crude oil sank to three-month lows after data showed a sharp rise in U.S.
inventories, while worries about China's economy weighed on the demand outlook.
Against this backdrop, traders are awaiting comments from US policymakers this week, including Powell and New York Fed President John Williams, to see how strongly the central bank will resist the recent easing of financial conditions.
Stocks are plummeting in the markets.
The wait is all for the Fed Asia is reeling today.
MSCI's broader Asia-Pacific stock index fell 0.44%.
Japan's Nikkei 225 slipped from early gains to close lower at -0.26% after Bank of Japan Governor Kazuo Ueda told parliament the central bank does not need to wait for real wages to turn positive before abandon stimuli.
He also hinted that the end of ETF buying is approaching.
Chinese stocks also fell, as the respite offered by some bullish comments from the governor of the People's Bank of China proved short-lived.
Hong Kong's Hang Seng lost 0.48%.
read also There's optimism about recovery in China, but the dragon may still collapse Oil remains sluggish after slumping to three-month lows, as an expected drop in U.S.
gasoline consumption added to a rising set of indicators suggesting that the demand outlook is worsening.
China, the world's largest importer, is also seeing a drop in demand for oil as winter approaches.
“A decline in oil prices is due to concerns about stagnant demand amid uncertainty over the global economy,” said Rina Oshimo, senior strategist at Okasan Securities.
“There is a notable decline especially in economically sensitive stocks such as trading companies, steel and shipping.” Global stocks are poised for a double-digit rally in 2024 if the Fed changes its monetary policy and allows the economy to avoid a recession, according to strategists at HSBC Holdings Plc.
The Federal Reserve itself is the true protagonist of the markets.
Expectations have been building in recent days that US policy rates would peak and cuts could begin as early as May, following a weakening of key monthly jobs data late last week and a easing of hawkishness of the Fed.
read also Who will cut rates first? Fed, ECB, BoE in comparison However, investors remain sensitive to the possibility of further increases despite the cautious remarks of central bank officials.
Fed Governor Christopher Waller said Tuesday that the economy was worth keeping a close eye on after booming third-quarter GDP data, while fellow governor Michelle Bowman said she still expects higher rates will be needed.
Powell will speak today and Thursday.
Kyle Rodda, senior market analyst at commented that markets are repositioning for moderation in US growth, also linked to the prospect of higher and longer borrowing costs.
“The fall in oil prices is sending a similar signal,” he added.
“The sell-off is due to demand fears: there is a lot of fear about China's recovery, but also about the fact that, after exceptional resilience, the American economy is slowing down.”

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