Good morning, everybody. This is Martina’s Corner at Jores Capital on Monday, August 29, 2022. Welcome to our program. We are giving you a short summary on market news, politics, economics and other world news and market outlook every Monday and Thursday.
Let’s see what moves the markets and the world.
Last Friday, August 26, the leaders of the world’s central banks started the annual Fed meeting in Jackson Hole, Kansas to report on the economy and the measurements they are going to take. Fed chair Jerome Powell warned that rising interest rates will still cause “some pain” to the economy of the United States. Policy makers of the European Central Bank, and the chairs of the Bank of Japan, Korea, Switzerland and the Bank of England shared Powell’s view. This confirms what we suspected in our latest podcasts that the Federal Reserve and other central banks will increase interest rates until the inflation eases considerably. Yet even though effects for the population will be harsh temporarily, we have learnt from the past that late reactions will only come at an even higher cost. As a reaction the markets were weaker with the Dow Jones dropping a little over 1000 points, 3,03%, the German DAX was 300 points, 2,26% down, in Japan the Nikkei index dropped 2,58%, Australia’s S&P500/ASX200 was 1,97% down, the London FTSE lost 0,70%, whereas the Shanghai Composite was only 0,11% down.
That being said, some pandemic winners in the stockmarket are facing harsh times at the moment. But don’t forget. It’s all cyclical. Never panic over momentary stock market losses if your stock is fundamentally good.
Twitter faces an additional struggle adding to the battle it is fighting in the courts against Elon Musk as its former chief of security, Zatko, blew the whistle, when he alleged that the company had privacy and security issues that could have negative effects on its users. Twitter rejects all accusations, yet the stock lost 7% over the last week, 1,44% last Friday.
So, let’s see what the markets are doing today: The Dow Jones Future is 183 points down, 0,57%, and the S&P500 future trades 30 points, 0,27% lower as of 3,08am Eastern Time, 9,08 CET. When we looked about 45 minutes earlier the Dow Jones future was 248 points down so markets seem to recover for the moment. The German DAX is 159 points, 1,23% down, and the Spanish IBEX trades 79 points lower, 0,98%. And the London FTSE 100 trades at 0,54%, 40 points lower this morning.
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See you again and have a great day!
Music by Music Unlimited at pixabay.com. Track «This is Epic» at shorturl.at/fSZ49