Loud and clear. Federal Reserve officials reiterated that they will keep raising interest rates to restrain high inflation, as turmoil in Europe continued to fray investor nerves. It may have taken six months, but the Fed’s message is getting received loud and clear in the stock market where everyone from retail traders to smart-money speculators is pulling up stakes. The S&P500 fell as much as 2.9% overnight, while the Nasdaq 100 was dragged even lower by Apple, which took a 6.1% hit — equivalent to a $120 billion wipeout — after a rare analyst downgrade from Bank of America. The pain looks set to continue in Asia.
Mon Sep 26 Rosh Hashana, the Jewish New Year, is celebrated. | Tue Sep 27 Japan holds state funeral for former Prime Minister Shinzo Abe. | Wed Sep 28 US president hosts first US-Pacific Island Country summit in DC. | Thu Sep 29 Election of the lord mayor of the City of London. | Fri Sep 30 Deadline for US government shutdown. | Sat Oct 1 National Day to commemorate the founding of the People’s Republic of China, beginning the Golden Week national holiday. | Sun Oct 2 Daylight saving time begins in Australia. Russia is moving swiftly to stage votes on annexing regions of Ukraine under its control. The so-called Donetsk and Luhansk People’s Republics, as well as occupied Kherson and Zaporizhzhia, plan votes for several days through Tuesday just as Moscow plans to mobilize reservists in an escalation of the seven-month war. Italians go to the polls on Sunday to elect their 70th government since the end of World War II, with a far-right coalition favored to win. German Chancellor Olaf Scholz visits the Middle East as Europe’s biggest economy races to shore up energy supplies. OPEC’s World Oil Outlook is published on Tuesday, and EU energy ministers meet on Friday in Brussels for the second time in a month.
No end in sight. Housing paralysis engulfs US buyers with prices starting to fall. Photo: Jeremy Erickson | Bloomberg This week’s blitz of interest rate hikes is unlikely to mark the end of a campaign by central banks to crush inflation even as they run the risk of driving their economies into recession. The biggest movers included Sweden’s Riksbank, which surprised with a mammoth 100 basis-point hike. Indonesia was more aggressive than expected and Vietnam surprised with a rare tightening. In the US, the Fed’s aggression has brought an abrupt end to the pandemic housing boom, with prices in decline and a looming paralysis in the market. Here’s what’s happening in housing markets in other parts of the world.
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