Global Stocks Fell Into Bear Market On Recession Fears. Oil Prices Were Mixed. The Greenback And Gold Held Firm Prices. Sterling Slumped. Cryptos Changed Hands In Red.

Updated time: 28 Sep, 2022, 12:38 (UTC+04:00)

Stocks:

Wall Street joined the bloodbath as Fed policymakers expected more aggressive rate hikes even if that pushes the economy into recession. Dow Jones gave up 0.47% gains while S&P 500 fell 0.3%, equivalent to its two-year lows on Fed’s hawkish policy tightening. The bearish trend left investors worrying (but not feeling surprised) over ongoing falling stocks. Only Nasdaq climbed slightly 0.25%, thanks to the rally of Tesla and Nvidia.

Global Stocks Fell Into Bear Market On Recession Fears. Oil Prices Were Mixed.

Despite a 20% decline due to recession fears already, the Fed plans to raise rates by 50 bps in December, bringing the year's end rate to between 4.25% and 4.5%. At this time, short-run pain of recession or long-run pain of inflation, which is better?

Commodities:

Oil prices were mixed but still in safe levels, as production hampered by Hurricane Ian was offset by crude storage builds. While U.S. WTI crude futures increased 22 cents to $78.03, Brent crude futures marginally declined 0.1% to $86.23, on per barrel.

Gold prices barely changed. While gold futures declined to $1,653.90 per ounce from their previous closing of $1,628.67, spot gold remained unchanged.

Currencies:

Dollar continued to hold its dominant position near a two-decade high against its peers after yields surged. The dollar index gained 0.18% to 114.35. Sterling slumped 0.4% to $1.0693 as concerns over Britain’s radical tax cuts prompted the government’s significant policy response. The Aussie and euro dropped 0.1% and 0.2% respectively. Yen was stuck despite the previous government’s intervention.

Cryptocurrencies:

Major cryptos backed in red. Bitcoin was recently trading just over $19,100 down about 1% over the day as investors were still hesitant to risk taking. Meanwhile, Ethereum was quite flat, changing hands at approximately $1,330.

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