The US stock market has entered a bear market. Hong Kong is giving out more cash. Disney had a hard time in India. Today is what you need to know.
US stocks entered a bear market and the dollar rallied as global trading was rattled by worries about the Federal Reserve plunging the economy into a recession. The S&P 500 fell to its lowest point in more than two years and was down more than 20% from its record high. Over the last 24 hours.
The Federal Reserve is likely to consider the biggest interest-rate increase since 1994 when it meets this week. The bear market has arrived and here is what to do with your stock holdings.
The Biden administration made a surprise announcement last week that it was banning US investors from buying assets from Russia. According to market professionals, the pair were still matching sellers with interested buyers. The EU and the US have built exemptions into their restrictions on doing business with Russia to allow trade infertilizer The full story can be found here. Russia is sending crude into Asia.
Non-permanent residents and foreign students will be included in Hong Kong's cashvoucher program. People who are planning to emigrate will receive HK$5,000 from August 7. The economy has been hurt by Covid restrictions and closed borders. After an easing of border restrictions led to a surge in international flights, Covid-19 infections jumped to a record in the city.
Commercial airline travel has improved over the years. There are pilots who deliberately crash in murder-suicides. There have been four crashes since the beginning of the year that have resulted in deaths. The airline industry is facing a problem. The report can be read here.
Disney lost the rights to broadcast India's hugely popular cricket league in a bidding war. A person who wasn't authorized to speak publicly said that the online rights to the Indian premier league were awarded to a joint venture between Paramount Global and Reliance Industries. Peter Rice, Disney's head of television, was terminated for not being a team player.
It seems like a week in markets is longer than in politics. I mentioned a week ago that cross-asset volatility was poised to make a new low. Unless investor angst eases down further, there's a chance of fresh turmoil breaking out.
Friday's US inflation surprise sent a gauge of bond, currency and stock volatility soaring at the fastest five-day pace since the March 2020 crisis. It is close to hitting levels not seen since the first Covid-19 outbreak. The elevated US and global inflation readings make it unlikely that the central bank will ride to the rescue this time.
Garfield Reynolds is based in Australia.
Garfield Clinton Reynolds helped with the project.
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