King Dollar, UK Collapse, Boeing decides SEC expenses

© Reuters

By Geoffrey Smith – The dollar is giving everything else a good kick as global markets discount the likelihood that the Federal Reserve will raise interest rates even further, even at the risk of a global recession. The sterling and the UK’s businesses are going through a particularly miserable period after the new government unveiled a radical and – some say – irresponsible plan to cut taxes. Boeing pays $ 200 million to settle SEC charges of misleading investors about the safety of the 737-MAX, and oil prices are testing new lows for the year as the dollar gets more expensive. Here’s what you need to know about the financial markets on Friday 23 September.

1. The dollar rises as Treasury yields suck the life out of global markets

The dollar continued its upward stampede, the latest lead to come after polls by purchasing managers in Europe showed that both the economy and the economy are sliding into recession.

The, which replicates the greenback against a basket of six advanced economy currencies, rose to a new 20-year high out of 112 as rising short- and long-term interest rates on dollars continued to suck capital from Worldwide.

US Treasury bond yields continued to rise overnight as market prices expected further interest rate hikes from the Federal Reserve. The Treasury yield, which was particularly sensitive to Fed expectations, rose to a new 15-year high of 4.26% before easing back slightly.

2. UK markets in free fall after government announced massive tax cuts in addition to energy subsidies

they were in free fall across the board on Friday after financial markets reacted negatively to the new government’s aggression in hopes of stimulating growth.

The dollar tumbled more than 1.2% against the dollar, hitting a new 37-year low of $ 1.1079, and also lost more than 0.5% against.

In the equity market, the index fell 1.6%, while the more UK-focused midcap index fell a more modest 0.6%.

Government bond yields have reached their highest levels in recent years along the entire yield curve, as traders have priced the prospect or much heavier debt to finance a budget deficit set to increase dramatically, following of tax cuts of £ 45 billion and energy subsidies that will cost around £ 60 billion in the next six months alone.

3. Securities destined for a weak opening; Future Dow

US equities should open sharply to the downside, with a whiff of capitulation in the air as rising bond yields tighten financial conditions for the US and the world economy.

As of 6:25 am ET (10:25 am GMT), they were trading below 30,000, down 290 points or 1.0% from the close on Thursday. they were down by 1.1% and 1.2%.

Actions that may be the focus of attention later include Amazon (NASDAQ :), after a critical report by the Wall Street Journal on its drivers’ safety standards, and Boeing (NYSE :), which to settle the Securities and Exchange Commission for misleading investors about the safety of its 737-MAX airliners.

Both the data and the earnings calendar are effectively empty.

4. Hong Kong, Thailand loosens long-standing COVID restrictions

There has been better news out of Asia, with Hong Kong and Thailand announcing major eases of their respective public health measures to control COVID-19.

Thailand will end the national state of emergency that has been in place for two and a half years, downgrading the virus from a “dangerous” communicable disease to one that only requires surveillance. The emergency regime has dealt a severe blow to an economy that relies more than most on international tourism revenues.

In Hong Kong, meanwhile, authorities have canceled hotel quarantine for inbound travelers and signaled further easing is likely.

5. Oil collapses due to fears of demand destruction; rig count, CFTC due

Crude oil prices for the year as the rising dollar continued to make the world’s most important commodity less accessible.

As of 6:30 am ET, futures fell 2.6% to $ 81.39 a barrel, while futures fell 2.3% to $ 88.40, unimpressed by new news suggesting OPEC and its allies could cut production to prevent a further drop in prices. The bloc is already producing more than 3.5 million barrels a day less than its official production quotas, while a Russian government document quoted Thursday by news outlets suggested that Moscow expects its oil production to decline by about. 6% next year under the impact of sanctions.

and dates round off the following week.

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