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US Open: Stocks lower as economy weakens, US data, Goldman layoffs, oil slumps, gold’s bad week, crypto audits



US stocks are declining as investors can’t shake off all the hawkish rhetoric that came from central bankers this week and as the private sector clearly entered a strong downturn.  Now that the Fed has increased rates by 400bps in just nine months, the monetary policy has become more restrictive.  Recession risks will only grow now that Powell has signaled that we should expect ‘ongoing increases’.

Global bond yields are increasing after central banks have tightened once more and signaled that there would be more rate rises.  Although the Eurozone was in contraction territory, the flash PMIs from Europe showed that the readings were better than expected. This could allow the ECB’s rate hike campaign to continue. 

US data

The flash PMIs confirmed Wall Street’s fears that the economy is quickly headed towards a recession.  The S&P Global Flash Composite PMI report noted that “US private sector ends year in stronger downturn as demand weakness and price pressures bite.”   The services business activity index fell to a four-month low at 44.4. 

The headline composite PMI reading was 44.6 which was lower than anticipated. This is the same reading as August. Manufacturing activity plunged to…

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