Reuters, September 28 - Jamie McGeever, a financial markets columnist, gives a preview of the day's trading in Asian markets.
Sometimes markets gain momentum, making it exceedingly difficult to stop it, let alone reverse it.
There is evidence to suggest that markets in the United States, Asia, and around the world, across all asset classes, are in this situation, where they are feeding off one another and speeding up self-fulfilling loops.
These are "doom" loops right now: rising U.S. bond yields, a strong dollar, higher oil costs, tightening financial conditions, intensifying concerns about future economic growth, declining risk appetite, and eroding equities markets.
This pattern was demonstrated by Wall Street's performance on Wednesday; despite falling the day before, it made very little progress. Asian equities hardly made up any of the previous days' losses, as global stocks fell for the ninth consecutive day.
There is nothing on the economic or policy calendar that is likely to do so, other from Australian retail sales, that will serve as a springboard for Asian markets on Thursday.
The S&P 500's recent gains have been inconsistent and modest. Only twice this month has the index increased by 0.5% or more, and a gain of 1% has not been recorded. Six times it has decreased by at least 0.5%, three of which were decreases of 1% or more.
In the meantime, Treasury yield gaps over foreign bonds expanded on Wednesday as the dollar, oil, and U.S. bond yields all increased. The 2-year U.S.-Japanese spread is well above 500 bps and driving the dollar/yen closer to the 150.00 mark. The 10-year U.S.-Chinese spread is currently 190 basis points, the widest since 2006.
Japan has not yet intervened, though.
The commotion, mystery, and ambiguity surrounding Evergrande in China are intensifying after Bloomberg reported on Wednesday that the company's boss was being watched by the police.
With over $300 billion in total liabilities, the world's most indebted developer is at the epicenter of China's property sector's enormous liquidity crisis, which affects around a fourth of the country's GDP.
Evergrande's debt restructuring has ramifications far beyond China's borders because China's sputtering real estate industry is lowering global copper prices, which are frequently considered a harbinger for the global economy.
There are indications that Beijing's latest economic stimulus measures may be working. For the first eight months of the year, industrial companies in China made a profit.
A sense of impending doom seemed to be looming over the realm of content creation as the sun rises. The phrase "doom loop" is being used more frequently to refer to a worrying pattern that has been gathering traction in recent years. This circle is characterized by a series of interrelated, self-perpetuating elements that jeopardize the long-term viability and caliber of content across numerous media platforms.
The competition for clicks and views is one of the main elements of this death spiral. information producers, both individuals and organizations, are constantly under pressure to provide information that captivates the audience in a time when digital media predominates. Sensationalism, click-bait headlines, and the preference for quantity over quality are frequently the results of this.
Additionally, monetary models
Happy morning! We're thrilled to start your day off with a variety of fascinating stuff. We've got you covered on everything from breaking news and informative articles to motivational tales and practical advice.
Keep up with the latest news by reading our updates on politics, technology, health, and other topics. Explore in-depth articles that examine fascinating trends and themes. Learn new viewpoints via insightful editorials and professional opinions.
In need of inspiration? Examine the success tales of people who overcame obstacles to realize their goals. Find useful guidance to improve your well-being, health, and productivity.
Don't forget to go through our entertainment department for reviews of the newest TV shows, albums, and novels. Additionally, gain insight into the fields of travel, culture, and the arts.
About the Creator
Hridoy Talukder
I'm a skilled content creator with the ability to produce enticing, instructive, and persuasive content. I am successful in various agreements and endeavors, delivering powerful information that resonates.
Comments
There are no comments for this story
Be the first to respond and start the conversation.