worst – Business News Updates https://newsdaily.business Wed, 18 Jan 2023 22:56:59 +0000 en hourly 1 https://wordpress.org/?v=6.4.3 https://newsdaily.business/wp-content/uploads/2021/02/cropped-handshake-hand-gesture-dollar-money-finance-coin_96px-32x32.png worst - Business News Updates https://newsdaily.business 32 32 Nearly $1 Billion Poured Into Egypt’s Forex Market — Local Currency Now World’s Worst Performing Currency in 2023 – https://newsdaily.business/2023/01/18/nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023/ https://newsdaily.business/2023/01/18/nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023/#respond Wed, 18 Jan 2023 22:56:59 +0000 https://newsdaily.business/2023/01/18/nearly-1-billion-poured-into-egypts-forex-market-local-currency-now-worlds-worst-performing-currency-in-2023/ The Egyptian central bank recently claimed that its decision to devalue the local currency has been vindicated by foreign investors’ return to the country’s foreign market where they reportedly poured in $925 million in just three days. The surge in the sales of Egyptian treasury bills that mature in a year or less similarly is […]]]>


The Egyptian central bank recently claimed that its decision to devalue the local currency has been vindicated by foreign investors’ return to the country’s foreign market where they reportedly poured in $925 million in just three days. The surge in the sales of Egyptian treasury bills that mature in a year or less similarly is said to vindicate the central bank’s devaluation of the pound.

Surge in Treasury Bill Sales

Foreign investors reportedly moved $925 million into Egypt’s foreign exchange market just days after the local currency’s exchange rate versus hard currencies sharply declined. In addition, the country’s forex market has also received inflows from the so-called local sources as well as from Egyptians working abroad.

According to a Reuters report based on the Central Bank of Egypt (CBE)’s Jan. 16 statement, just three days after the Egyptian pound’s devaluation on Jan. 11, Egyptian banks were able to fulfill importers’ requests for forex amounting to $2 billion. In its Arabic language statement, the CBE reportedly said the return of foreign investors, which is also evidenced by the surge in the sale of Egyptian treasury bills, vindicates its decision to switch from a fixed to a flexible exchange rate regime.

As recently reported by Bitcoin.com News, the Egyptian pound briefly fell to an all-time low of 32.14 units of the local currency for every dollar. By allowing the pound to depreciate by more than 16% in just under a year, the CBE met a key International Monetary Fund demand. Satisfying this demand allowed the IMF to approve Egypt’s $3 billion loan package.

Meanwhile, a Bloomberg report said Egypt’s net international reserves had risen despite the debt repayment of $2.5 billion that was made in late 2022. To help Egyptians counter the effects of rising inflation, local banks are now reportedly selling currency derivatives, the CBE said.

Since plunging to an all-time low of 32.14 per dollar, the Egyptian pound has marginally recovered and at the time of writing, it trades at around 29.57 per dollar on Jan. 17 (16:32 EST).

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














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Read More:Nearly $1 Billion Poured Into Egypt’s Forex Market — Local Currency Now World’s Worst Performing Currency in 2023 –

2023-01-18 22:30:13

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China’s 2022 economic growth one of the worst on record, post-pandemic policy faces test https://newsdaily.business/2023/01/17/chinas-2022-economic-growth-one-of-the-worst-on-record-post-pandemic-policy-faces-test/ https://newsdaily.business/2023/01/17/chinas-2022-economic-growth-one-of-the-worst-on-record-post-pandemic-policy-faces-test/#respond Tue, 17 Jan 2023 11:29:50 +0000 https://newsdaily.business/2023/01/17/chinas-2022-economic-growth-one-of-the-worst-on-record-post-pandemic-policy-faces-test/ China Q4 GDP growth slows; 2022 growth one of worst on record 2022 GDP grows 3.0%, far below official target Dec factory output, retail sales weak but beat expectations Population shrinks for the first time since 1961 Policymakers vow to step up support for economy in 2023 BEIJING, Jan 17 (Reuters) – China’s economic growth […]]]>


  • China Q4 GDP growth slows; 2022 growth one of worst on record
  • 2022 GDP grows 3.0%, far below official target
  • Dec factory output, retail sales weak but beat expectations
  • Population shrinks for the first time since 1961
  • Policymakers vow to step up support for economy in 2023

BEIJING, Jan 17 (Reuters) – China’s economic growth in 2022 slumped to one of its worst levels in nearly half a century as the fourth quarter was hit hard by strict COVID curbs and a property market slump, raising pressure on policymakers to unveil more stimulus this year.

The quarterly growth and some of the December indicators such as retail sales beat market expectations, but analysts noted the overall economic impulse across China remained weak and highlighted the challenges facing Beijing after it abruptly lifted its “zero-COVID” policy last month.

Gross domestic product (GDP) grew 2.9% in October-December from a year earlier, data from the National Bureau of Statistics (NBS) showed on Tuesday, slower than the third-quarter’s 3.9% pace. The rate still exceeded the second quarter’s 0.4% expansion and market expectations of a 1.8% gain.

Beijing’s sudden relaxation of stringent anti-virus measures has boosted expectations of an economic revival this year, but it has also led to a sharp rise in COVID cases that economists say might hamper near term growth. A property slump and weak global demand also mean a rebound in growth will be heavily reliant on shell-shocked consumers.

“China’s 2023 will be bumpy; not only will it have to navigate the threat of new COVID-19 waves, but the country’s worsening residential property market and weak global demand for its exports will be significant brakes,” Harry Murphy Cruise, economist at Moody’s Analytics, said in a note.

For 2022, GDP expanded 3.0%, badly missing the official target of “around 5.5%” and braking sharply from 8.4% growth in 2021. Excluding the 2.2% expansion after the initial COVID hit in 2020, it’s the worst showing since 1976 – the final year of the decade-long Cultural Revolution that wrecked the economy.

“Activity data in December surprised broadly to the upside, but remains weak, particularly across demand-side segments such as retail spending,” Louise Loo, senior economist at Oxford Economics, said in a note.

The “data so far supports our long-held view that China’s reopening boost will be somewhat anaemic at the beginning, with consumer spending being a key laggard in the initial stages,” Loo said.

A Reuters poll forecast growth to rebound to 4.9% in 2023, as Chinese leaders move to tackle some key drags on growth – the “zero-COVID” policy and a severe property sector downturn. Most economists expect growth to pick up from the second quarter.

A strong rebound in China could temper an expected global recession, but it could also cause more inflationary headaches worldwide just when policymakers are starting to get a handle on record price surges.

Reuters Graphics

REOPENING CHALLENGES

Asian shares dropped after the Chinese data, while the yuan skidded to a one-week low.

On a quarterly basis, GDP stalled, coming in at 0.0% in the fourth quarter, compared with growth of 3.9% in July-September, highlighting underlying weakness across many sectors.

Beijing’s lifting of COVID curbs has seen businesses struggling with surging infections, suggesting a bumpy recovery in the near term.

“The ongoing ‘exit wave’ on the back of China’s faster-than-expected reopening has taken a heavy toll on economic activity in recent months, due to surging infections, a temporary labour shortage and supply chain disruptions,” economists at Goldman Sachs said, noting the annual contractions in output of both steel product and cement in December.

Factory output grew 1.3% in December from a year earlier, slowing from a 2.2% rise in November, while retail sales, a key gauge of consumption, shrank 1.8% last month after November’s 5.9% drop.

Official data showed unemployment eased despite manufacturing and services activity getting squeezed by the spike in COVID infections. The nationwide survey-based jobless rate dropped to 5.5% in December from 5.7% in November.

China’s top leaders have pledged to prioritise consumption expansion to support domestic demand and the broad economy this year, at a time when local exporters struggle in the wake of global recession risks. The central bank is also expected to steadily ease policy this year.

China is likely to aim for economic growth of at least 5% in 2023 to keep a lid on unemployment, policy sources said.

PROPERTY, POPULATION HEADWINDS

China’s property industry was among the biggest drags on growth. Investment in the sector fell 10.0% year-on-year in 2022, the first decline since records began in 1999, and property sales slumped the most since 1992, NBS data showed, suggesting that government support measures were having minimal impact so far.

Authorities have rolled out a flurry of policies targeting homebuyers and property developers in recent weeks, to relieve a long-running liquidity squeeze that has hit developers and delayed the completion of many housing projects.

Adding to the challenges facing the economy and the government, China’s population in 2022 fell for the first time since 1961, the NBS data showed, a historic turn that is expected to mark the start of a long period of decline in its citizen numbers and see India become the world’s most populous nation in 2023.

“The population will likely trend down from here in the coming years. This is very important, with implications for potential growth and domestic demand,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

“Going forward, demographics will be a headwind. Economic growth will have to depend more on productivity growth, which is driven by government policies.”

Reporting by Kevin Yao, Ellen Zhang, Joe Cash and Liangping Gao
Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.



Read More:China’s 2022 economic growth one of the worst on record, post-pandemic policy faces test

2023-01-17 09:51:00

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With the housing market ‘fizzled out,’ 2023 is off to the worst start in decades — but here’s why analysts are dreaming https://newsdaily.business/2023/01/07/with-the-housing-market-fizzled-out-2023-is-off-to-the-worst-start-in-decades-but-heres-why-analysts-are-dreaming/ https://newsdaily.business/2023/01/07/with-the-housing-market-fizzled-out-2023-is-off-to-the-worst-start-in-decades-but-heres-why-analysts-are-dreaming/#respond Sat, 07 Jan 2023 20:56:47 +0000 https://newsdaily.business/2023/01/07/with-the-housing-market-fizzled-out-2023-is-off-to-the-worst-start-in-decades-but-heres-why-analysts-are-dreaming/ With the housing market ‘fizzled out,’ 2023 is off to the worst start in decades — but here’s why analysts are dreaming of a mild spring Homebuyers hoping for a better climate in 2023 have longer to wait, as they now face the highest mortgage rates to start a new year since 2002. However, analysts […]]]>


With the housing market ‘fizzled out,’ 2023 is off to the worst start in decades — but here’s why analysts are dreaming of a mild spring

With the housing market ‘fizzled out,’ 2023 is off to the worst start in decades — but here’s why analysts are dreaming of a mild spring

Homebuyers hoping for a better climate in 2023 have longer to wait, as they now face the highest mortgage rates to start a new year since 2002.

However, analysts remain hopeful that today’s volatile rates will stabilize in the coming months.

“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023,” says Sam Khater, Freddie Mac’s chief economist.

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of millennial renters will provide support to the purchase market.”

Don’t miss

30-year fixed-rate mortgages

The average 30-year fixed-rate is 6.48%, up from last week when the average rate was 6.42%, Freddie Mac reported Thursday.

This time a year ago, the average rate was just 3.22%.

“Although rates are more than double a year ago, rates will likely stabilize below 6% in 2023 as inflation will continue to slow down in the following months,” says Nadia Evangelou, senior economist for the National Association of Realtors.

She acknowledges that only a fraction of potential buyers will be able to afford a home if these conditions linger.

“With the qualifying income near the $100,000 threshold, 32% of all households and 15% of all renters can currently afford to buy the median-priced home.”

15-year fixed-rate mortgages

The average 15-year fixed rate moved up to 5.73%, compared to the previous week’s rate of 5.68%.

This time last year, it was 2.43%.

“Capital markets are reacting to the uncertainty brought about by the dichotomy between mounting recession expectations and incoming economic data which show continued resilience,” writes George Ratiu, manager of economic research at Realtor.com.

“Real estate markets are firmly in the winter season, with high prices and rates creating a barrier for many buyers on the road to homeownership.”

Ratiu points out that the buyer of a median-priced home today could be facing a monthly payment that’s 64% higher than last year.

“We may have to wait until the start of the spring shopping season for more clarity on the direction of housing markets this year, especially as both buyers and sellers are pulling back from the marketplace.”

Read more: 4 easy alternatives to grow your hard-earned cash without the shaky stock market

Pending home sales plummet

Pending home sales plunged 32% in the month of December, compared to the same period last year, reports Redfin. Sales dropped to their lowest level since at least 2015.

“The housing market fizzled out at the end of 2022 due to 6%-plus mortgage rates, a looming recession, record-low new listings, extreme winter weather and the typical holiday slowdown,” writes Redfin data journalist Dana Anderson.

The real estate giant points to the most drastic declines in “pandemic homebuying hotspots” Las Vegas, Phoenix and Austin, which each saw pending sales drop more than 50%.

“Two categories of buyers are starting their search right now: First-timers hoping prices and competition are more manageable than they have been over the last few years, and returning buyers who took a break after losing out on multiple homes during the pandemic bidding-war frenzy,” says Seattle Redfin agent Shoshana Godwin.

Godwin believes that buyers may now be able to find homes for slightly lower prices compared to last year, but the market could become more competitive over the coming months.

“I expect new listings to remain scarce as homeowners hold on to low interest rates while the pool of determined buyers circle the few homes that are available.”

Mortgage applications hit lowest level since the ’90s

Mortgage applications sank 13.2% from two weeks prior, according to the Mortgage Bankers Association. (Data wasn’t released last week since the MBA’s offices were closed for the holidays.)

“The end of the year is typically a slower time for the housing market, and with mortgage rates still well above 6% and the threat of a recession looming, mortgage applications continued to decline over the past two weeks to the lowest level since 1996,” says Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association.

Refinance activity also declined 16.3% from two weeks ago — and is 87% lower than at the same time last year.

“Even as home-price growth slows in many parts of the country, elevated mortgage rates continue to put a strain on affordability and are keeping prospective homebuyers out of the market,” Kan says.

What to read next

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.



Read More:With the housing market ‘fizzled out,’ 2023 is off to the worst start in decades — but here’s why analysts are dreaming

2023-01-07 14:00:00

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Rupee falls over 11 pc in 2022 — worst since 2013 https://newsdaily.business/2023/01/01/rupee-falls-over-11-pc-in-2022-worst-since-2013/ https://newsdaily.business/2023/01/01/rupee-falls-over-11-pc-in-2022-worst-since-2013/#respond Sun, 01 Jan 2023 09:40:16 +0000 https://newsdaily.business/2023/01/01/rupee-falls-over-11-pc-in-2022-worst-since-2013/ The Indian rupee depreciated over 11 per cent in 2022 against the dollar — its poorest performance since 2013 and the worst drubbing among Asian currencies — as the US Federal Reserve’s aggressive monetary policy propelled the greenback. The rupee closed 2022 at 82.61 to the US dollar, down from 74.29 at end of 2021 […]]]>


The Indian rupee depreciated over 11 per cent in 2022 against the dollar — its poorest performance since 2013 and the worst drubbing among Asian currencies — as the US Federal Reserve’s aggressive monetary policy propelled the greenback. The rupee closed 2022 at 82.61 to the US dollar, down from 74.29 at end of 2021 as the US currency headed for its biggest yearly gain since 2015. The Indian unit, however, fared better than some other global currencies like the Turkish Lira and British Pound. The volatility in the forex market, prompted by a rally in global oil prices following Russia’s war in Ukraine, meant the Reserve Bank had to frequently dip into its reserves as imported inflation became a challenge for policymakers. Since mid-October, the rupee recovered from the bouts of volatility experienced in the earlier part of the year and has been trading close to its long term trend, as per the RBI’s Financial Stability Report. The volatility in the currency market during the year was triggered by the outbreak of the Russia-Ukraine war in February as it disrupted the global supply chains, fuelling inflation as well as inflationary expectations across the world. A hawkish US Federal Reserve started raising rates to rein in inflation just as severe geopolitical crises besieged the global economy. It made the dollar a safe haven currency, causing huge investment outflows from other countries. High crude oil prices in the international market too weighed on the rupee. Foreign investors pulled out a net sum of Rs 1.22 lakh crore from the Indian equity markets and over Rs 17,000 crore from the debt markets in 2022 owing to aggressive rate hike by central banks globally. As a strong dollar weighed on India’s trade, imported inflation became a significant challenge for Indian policymakers. Though the RBI spent more than a hundred billion dollars to prop up the sliding rupee, it crossed the psychological mark of 83 to a greenback. Yet, there is hope for the rupee in the New Year. There are indications that the US Fed will further reduce the intensity of rate hikes in the coming year. Also, the global investors have not lost confidence in Indian markets, and FII inflows have begun to improve. In addition, declining global energy prices, strong fundamentals of the Indian economy and inflation coming back to the Reserve Bank’s comfort level will help the rupee regain some strength against USD. Dilip Parmar, Research Analyst, HDFC Securities, said 2023 could start on a volatile note as resurgent Covid worries could bode well for the dollar, while the second half is expected to be relatively calmer as we see inflation and interest rates peak out. ”We believe the rupee can consolidate between 84 to 79 and could register a small depreciation against the US dollar. Historically, we have seen whenever there was more than 10 per cent depreciation, the next year remains relatively calmer with average depreciation of around 2 per cent,” Parmar added. Falling value of the rupee has also created concerns on the Current Account Deficit (CAD) front, which coupled with widening trade deficit could put further pressure on the Indian currency going forward. On January 3 (the first trading day of 2022), the rupee closed almost flat at 74.28. It slumped 98 paise on February 24, the day the Russia-Ukraine war started and since then it has been on a downslide. On October 19, the rupee breached the 83 mark for the first time amid unabated foreign capital outflows, a strong dollar in the overseas markets, rising crude prices and risk-averse sentiment among investors. Navneet Damani, Senior Vice President, Currency and Commodity, MOFSL, said the rupee weakened sharply this year and weakness has been to the tune of 10 per cent primarily led by strength in the dollar against its major crosses. ”Major currencies in 2022 have fallen by an average of over 10 per cent including the rupee. But volatility for the rupee has been curtailed by active intervention by the RBI. Reserves have witnessed a bit of erosion but the central bank is now starting to again build up its reserves and that would act as a buffer in times of uncertainty,” he said. In the coming year, Motilal Oswal Financial Services (MOFSL) expects that volatility for the rupee could continue to remain elevated and with central banks at this point of time continuing to remain hawkish, it is likely to be supportive for the dollar across the board. ”We expect that the USD-INR (Spot) could trade with a positive bias and in the next quarter could quote in the range of 81.50 and 84.50,” he added. Aditi Nayar, Chief Economist, ICRA, said the rupee is likely to remain dominated by trends in the dollar index and global sentiment, with the latter likely to keenly guide trends in FPI flows. The rupee gained 26 paise to close at 82.61 against the US dollar in the last trading session of 2022, as the American currency retreated from its elevated levels. On December 31, 2021, the rupee had settled at 74.29 against the greenback.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Read More:Rupee falls over 11 pc in 2022 — worst since 2013

2023-01-01 06:42:20

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S&P 500 Closes Out Dismal Year With Worst Loss Since 2008 https://newsdaily.business/2022/12/31/sp-500-closes-out-dismal-year-with-worst-loss-since-2008/ https://newsdaily.business/2022/12/31/sp-500-closes-out-dismal-year-with-worst-loss-since-2008/#respond Sat, 31 Dec 2022 04:06:23 +0000 https://newsdaily.business/2022/12/31/sp-500-closes-out-dismal-year-with-worst-loss-since-2008/ Wall Street capped a quiet day of trading with more losses Friday, as it closed the book on the worst year for the S&P 500 since 2008. The benchmark index finished with a loss of 19.4% for 2022 — its worst loss since the financial crisis 14 years ago and a painful reversal for investors […]]]>


Wall Street capped a quiet day of trading with more losses Friday, as it closed the book on the worst year for the S&P 500 since 2008.

The benchmark index finished with a loss of 19.4% for 2022 — its worst loss since the financial crisis 14 years ago and a painful reversal for investors after the S&P 500 notched a gain of nearly 27% in 2021.

The Nasdaq composite racked up even bigger losses, sinking 33.1%. The index fared much worse because it is heavily made up of technology stocks, which led the broader market slump.

The Dow Jones Industrial Average, meanwhile, posted an 8.8% loss for 2022.

Stocks struggled all year as inflation put increasing pressure on consumers and raised concerns about economies slipping into recession. Central banks raised interest rates to fight high prices. The Federal Reserve’s aggressive rate hikes remain a major focus for investors as the central bank walks a thin line between raising rates enough to cool inflation, but not so much that they stall the U.S. economy into a recession.

The Fed’s key lending rate stood at a range of 0% to 0.25% at the beginning of 2022 and will close the year at a range of 4.25% to 4.5% after seven increases. The U.S. central bank forecasts that will reach a range of 5% to 5.25% by the end of 2023. Its forecast doesn’t call for a rate cut before 2024.

Russia’s invasion of Ukraine worsened inflationary pressure earlier in the year by making oil, gas and food commodity prices even more volatile amid existing supply chain issues. China spent most of the year imposing strict COVID-19 policies which crimped production for raw materials and goods, but is now in the process of removing travel and other restrictions.

The Fed’s battle against inflation, though, will likely remain the overarching concern in 2023, according to analysts. Investors will continue searching for a better sense of whether inflation is easing fast enough to take pressure off of consumers and the Fed.

If inflation continues to show signs of easing, and the Fed reins in its rate-hiking campaign, that could pave the way for a rebound for stocks in 2023, said Jay Hatfield, CEO of Infrastructure Capital Advisors.

“The Fed has been the overhang on this market, really since November of last year, so if the Fed pauses and we don’t have a major recession we think that sets us up for a rally,” he said.

There was scant corporate or economic news for Wall Street to review Friday. That, plus the holiday shortened week, set the stage for mostly light trading.

The S&P 500 fell 9.78 points, or 0.3%, to finish at 3,839.50. The index posted a 5.9% loss for the month of December.

The Dow dropped 73.55 points, or 0.2%, to close at 33,147.25. The Nasdaq slipped 11.61 points, or 0.1%, to 10,466.48.

Tesla rose 1.1%, as it continued to stabilize after steep losses earlier in the week. The electric vehicle maker’s stock plummeted 65% in 2022, its worst year ever.

Southwest Airlines rose 0.9% as its operations returned to relative normalcy following massive cancellations over the holiday period. The stock still ended 6.7% for the week.

Energy stocks held up better than the rest of the market as U.S. crude oil prices settled 2.4% higher. The sector notched a 59% gain for the year, while the other 10 sectors in the S&P 500 finished 2022 in the red.

Small company stocks also fell Friday. The Russell 2000 shed 5 points, or 0.3%, to close at 1,761.25.

Bond yields mostly rose. The yield on the 10-Year Treasury, which influences mortgage rates, rose to 3.88% from 3.82% late Thursday.

Several big updates on the employment market are on tap for the first week of 2023. It has been a particularly strong area of the economy and has helped create a bulwark against a recession. That has made the Fed’s job more difficult, though, because strong employment and wages mean it may have to remain aggressive to keep fighting inflation. That, in turn, raises the risk of slowing the economy too much and bringing on a recession.

The Fed will release minutes from its latest policy meeting on Wednesday, potentially giving investors more insight into its next moves.

The government will also release its November report on job openings Wednesday. That will be followed by a weekly update on unemployment on Thursday. The closely-watched monthly employment report is due Friday.

Wall Street is also waiting on the latest round of corporate earnings reports, which will start flowing in around the middle of January. Companies have been warning investors that inflation will likely crimp their profits and revenue in 2023. That’s after spending most of 2022 raising prices on everything from food to clothing in an effort to offset inflation, though many companies went further and actually padded their profit margins.

Companies in the S&P 500 are expected to broadly report a 3.5% drop in earnings during the fourth quarter, according to FactSet. Analysts expect earnings to then remain roughly flat through the first half of 2023.

U.S. stock markets will be closed Monday in observance of the New Year’s Day holiday.





Read More:S&P 500 Closes Out Dismal Year With Worst Loss Since 2008

2022-12-30 22:02:09

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Stocks fall as S&P 500 caps worst year since 2008 https://newsdaily.business/2022/12/30/stocks-fall-as-sp-500-caps-worst-year-since-2008/ https://newsdaily.business/2022/12/30/stocks-fall-as-sp-500-caps-worst-year-since-2008/#respond Fri, 30 Dec 2022 21:48:58 +0000 https://newsdaily.business/2022/12/30/stocks-fall-as-sp-500-caps-worst-year-since-2008/ Stocks closed lower across the board on Friday to finish off the worst year for the U.S. stock market since the financial crisis. When the year’s final closing bell rang on Friday, the S&P 500 and Dow were each off about 0.2%, while the tech-heavy Nasdaq fell a more modest 0.1%. With Friday’s losses, the […]]]>


Stocks closed lower across the board on Friday to finish off the worst year for the U.S. stock market since the financial crisis.

When the year’s final closing bell rang on Friday, the S&P 500 and Dow were each off about 0.2%, while the tech-heavy Nasdaq fell a more modest 0.1%.

With Friday’s losses, the S&P 500 fell 19.4% in 2022, its largest calendar-year decline since a 38% drop in 2008. Closing at 3,839.50 on Friday, the S&P 500 now stands at the same level as March 2021.

The Nasdaq Composite dropped 33% and stands at the same level as July 2020.

The Dow, meanwhile, fell a comparably modest 9% in 2022, while the bond market suffered through its worst year in modern history.

The yield on the 10-year Treasury rose from around 1.5% at the beginning of 2022 to settle at 3.88% on Friday. This move triggered a sell-off across fixed income markets and weighed on housing, with the average 30-year fixed mortgage rate finishing 2022 near 6.4%, its highest year-end level since 2001.

Tesla (TSLA) shares rose 1.1% on Friday, a move that followed the stock gaining some 8% on Thursday in a bid to recover sharp losses suffered this year and this month. Tesla shares lost over 65% this year and more than 30% in December.

WTI crude oil gained more than 2.5% on Friday, finishing 2022 at $80.40 per barrel and giving oil its second-straight annual gain. Though after the price of crude oil surged more than 50% in 2021 and then doubled early this year, WTI finished with a more modest 7% for the year.

The modest gain in oil prices, however, belies the strength seen by energy stocks in 2022, with the energy sector (XLE) rising some 57% this year, the only one of the 11 sectors in the S&P 500 to log gains this year.

The Federal Reserve’s aggressive rate hike campaign in 2022 weighed particularly heavy on technology stocks. The technology sector (XLK) fell 28% this year, its biggest drop since 2008, while communication services (XLC) — which was added to the S&P 500 in 2018 — logged its biggest drop on record, falling 38% in 2022, the most of any sector in the S&P 500.

In currency markets, the dollar was weaker on Friday but logged biggest annual gain since 2015 as interest rate increases from the Federal Reserve boosted demand for the greenback.

Crypto markets also endured a challenging 2022, as bitcoin (BTC-USD) is set to finish the year down 65%. The price of bitcoin was little-changed on Friday to trade near $16,500.

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Read More:Stocks fall as S&P 500 caps worst year since 2008

2022-12-30 21:04:43

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Dow falls 200 points in final session of 2022 as Wall Street heads for worst year since 2008 https://newsdaily.business/2022/12/30/dow-falls-200-points-in-final-session-of-2022-as-wall-street-heads-for-worst-year-since-2008/ https://newsdaily.business/2022/12/30/dow-falls-200-points-in-final-session-of-2022-as-wall-street-heads-for-worst-year-since-2008/#respond Fri, 30 Dec 2022 20:39:50 +0000 https://newsdaily.business/2022/12/30/dow-falls-200-points-in-final-session-of-2022-as-wall-street-heads-for-worst-year-since-2008/ Stocks fell on Friday as investors made their final trades in the worst year for the market since 2008. The Dow Jones Industrial Average slipped 220 points, or 0.7%. The S&P 500 shed 0.8%, while the Nasdaq Composite also dropped 0.8%. Friday marks the final day of trading in what has been a painful year […]]]>


Two experts discuss what happens to inflation in 2023

Stocks fell on Friday as investors made their final trades in the worst year for the market since 2008.

The Dow Jones Industrial Average slipped 220 points, or 0.7%. The S&P 500 shed 0.8%, while the Nasdaq Composite also dropped 0.8%.

Friday marks the final day of trading in what has been a painful year for stocks. All three of the major averages are marching toward their worst year since 2008, slated to snap a three-year win streak. The Dow fared the best of the indexes in 2022, down 9.4%. The S&P 500 and tech-heavy Nasdaq tumbled 20% and nearly 34%, respectively.

Sticky inflation and aggressive rate hikes from the Federal Reserve battered growth and technology stocks and weighed on investor sentiment throughout the year. Geopolitical concerns and volatile economic data also kept markets on edge.

“We’ve had everything from Covid problems in China to the invasion of Ukraine. They’ve all been very serious. But for investors, it is what the Fed is doing,” said Art Cashin, director of floor operations for UBS, on “The Exchange.”

As the calendar turns to a new year, some investors think the pain is far from over. They expect the bear market to persist until a recession hits or the Fed pivots. Some also project stocks will hit new lows before rebounding in the second half of 2023.

“I would love to tell you that it is going to be like the ‘Wizard of Oz’ and everything is going to be in glorious color in a moment or two. I think we may have a bumpy first quarter, and depending on the Fed it may last a little longer than that,” Cashin said.

Despite the yearly losses, the Dow and S&P 500 are on pace to snap three-quarter losing streaks. The tech-heavy Nasdaq, however, is on track for its fourth consecutive negative quarter for the first time since 2001. All three averages are negative for December, however.

Communication services was the worst performing sector in the S&P 500 this year, falling more than 40%, followed by consumer discretionary. Energy was the only sector to rise, climbing nearly 60%.

— Gabriel Cortes contributed reporting

Correction: A chart in this story has been updated to reflect the correct year-to-date decline for the Dow Jones Industrial Average.



Read More:Dow falls 200 points in final session of 2022 as Wall Street heads for worst year since 2008

2022-12-30 20:27:00

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Indian rupee ends down more than 10% in 2022, worst since 2013 https://newsdaily.business/2022/12/30/indian-rupee-ends-down-more-than-10-in-2022-worst-since-2013/ https://newsdaily.business/2022/12/30/indian-rupee-ends-down-more-than-10-in-2022-worst-since-2013/#respond Fri, 30 Dec 2022 15:29:45 +0000 https://newsdaily.business/2022/12/30/indian-rupee-ends-down-more-than-10-in-2022-worst-since-2013/ MUMBAI, Dec 30 (Reuters) – The Indian rupee ended 2022 as one of the worst-performing Asian currencies with a fall of 10.14%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve’s aggressive monetary policy stance to tame inflation. The rupee finished the year at 82.72 to the U.S. currency, […]]]>


MUMBAI, Dec 30 (Reuters) – The Indian rupee ended 2022 as one of the worst-performing Asian currencies with a fall of 10.14%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve’s aggressive monetary policy stance to tame inflation.

The rupee finished the year at 82.72 to the U.S. currency, down from 74.33 at the end of 2021, while the dollar index was headed for its biggest yearly gain since 2015.

The only other Asian currency to fall more than the rupee was the Japanese yen which was set to close 2022 down over 12% against the dollar.

The rupee was also a victim of a rally in oil prices sparked by the Russia-Ukraine conflict, which pushed India’s current account deficit to a record high in the September quarter in absolute terms.

Heading into 2023, market participants believe the rupee would trade with an appreciation bias, finding relief from easing commodity prices and hopeful of foreign investors continuing to buy Indian equities.

“The Fed could keep rates higher for longer than anticipated and if the slowdown in developed economies turns into a prolonged recession, India’s exports could be hit severely, which are two key risks for the rupee,” said Raj Deepak Singh, head of derivatives research at ICICI Securities.

Most traders and analysts expect the currency to move between a tight 81.50-83.50 range in the first quarter.

Equity inflows would be a key metric to watch for the rupee for foreign investors as well, analysts said.

But considering several uncertainties heading into 2023, such as tight monetary policy conditions, likely recession in some economies and an ongoing geopolitical conflict, gauging the direction of share markets had become tough, they added.

“There’s going to be a period of softness in global equities… If we get a selloff in Indian shares, I’ll be less optimistic on the rupee,” said Christopher Wong, FX strategist at OCBC Bank.

Even if the rupee appreciates, it could still underperform Asian peers and would not be a top pick in the emerging market complex, Wong said, expecting the South Korean won and the Thai baht to gain the most next year.

(This story has been corrected to change the headline, the quantum of rupee’s fall in paragraph 1, and delete the graphic)

Reporting by Anushka Trivedi in Mumbai, Editing by Eileen Soreng

Our Standards: The Thomson Reuters Trust Principles.



Read More:Indian rupee ends down more than 10% in 2022, worst since 2013

2022-12-30 15:14:00

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Jim Cramer says the ‘worst of 3 worlds’ helped lead stocks lower on Thursday https://newsdaily.business/2022/12/23/jim-cramer-says-the-worst-of-3-worlds-helped-lead-stocks-lower-on-thursday/ https://newsdaily.business/2022/12/23/jim-cramer-says-the-worst-of-3-worlds-helped-lead-stocks-lower-on-thursday/#respond Fri, 23 Dec 2022 03:27:46 +0000 https://newsdaily.business/2022/12/23/jim-cramer-says-the-worst-of-3-worlds-helped-lead-stocks-lower-on-thursday/ CNBC’s Jim Cramer outlined three reasons that markets lost a short-lived rally on Thursday. If the economy were running colder, if the stock market was lower, and if interest rates were higher before sliding, things would be different, Cramer said. “Today we didn’t see that, though. We had the worst of three worlds.” Here are […]]]>


Cramer explains how Micron's latest quarterly results affected markets on Thursday

CNBC’s Jim Cramer outlined three reasons that markets lost a short-lived rally on Thursday.

If the economy were running colder, if the stock market was lower, and if interest rates were higher before sliding, things would be different, Cramer said. “Today we didn’t see that, though. We had the worst of three worlds.”

Here are the three factors:

  1. Hot economic data: Initial weekly jobless claims for the week ending Dec. 17 rose by 2,000 to 216,000, according to the Labor Department. That’s less than the Dow Jones consensus estimate of 220,000.
  2. Weak corporate earnings: CarMax shares fell about 3.7% after the company reported weaker-than-expected profit and revenue in its latest quarter. Micron Technology shares slipped 3.4% after the company reported a wider-than-expected quarterly loss and miss on revenue after the close on Wednesday.
  3. Bearish comments about the market: David Tepper, founder of Appaloosa Management, told CNBC on Thursday that he’s leaning short on equities because it’s unusual for global central banks, including the Federal Reserve, the European Central Bank and Bank of England, to tighten at the same time.

Stocks fell on Thursday as Wall Street continues to worry that the Fed’s interest rate hikes could tip the economy into a recession. 

Investors also fear that time is running out for a Santa Claus rally, a phenomenon in which stocks tend to rise near the end of a year into the next year. Cramer reminded investors that charts suggest a market run could be in the works for after Thursday’s trading session.

“While we could still get that seasonal bounce, obviously the market’s gotten tougher to game,” he said.

Jim Cramer says the 'worst of 3 worlds' helped lead stocks lower on Thursday

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Read More:Jim Cramer says the ‘worst of 3 worlds’ helped lead stocks lower on Thursday

2022-12-22 23:42:07

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The worst of inflation is likely over, but the worst for the economy probably isn’t https://newsdaily.business/2022/12/13/the-worst-of-inflation-is-likely-over-but-the-worst-for-the-economy-probably-isnt/ https://newsdaily.business/2022/12/13/the-worst-of-inflation-is-likely-over-but-the-worst-for-the-economy-probably-isnt/#respond Tue, 13 Dec 2022 20:51:21 +0000 https://newsdaily.business/2022/12/13/the-worst-of-inflation-is-likely-over-but-the-worst-for-the-economy-probably-isnt/ November’s inflation data confirmed what many economists had been expecting: Price increases probably have peaked, providing relief in sight from the highest cost of living surge in more than 40 years. That’s the upside of the latest consumer price index reading Tuesday. The broad-based basket of goods and services showed prices up just 0.1% last […]]]>




Read More:The worst of inflation is likely over, but the worst for the economy probably isn’t

2022-12-13 16:52:25

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