Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Wall Street lower ahead of the Fed rate decision

Fed

US stocks fell for the second straight trading day as the September job opening data came as stronger-than-expected, which strengthens the odds for the Fed to continue its aggressive tightening monetary policy. The US ISM Manufacturing PMI printed at 50.2, better than an estimated 50.0, but still at a two-year low level. While the US 10-year bond yields fell slightly to 4.05%, the US dollar index anchored above 111. The Fed is expected to raise the interest rate by another 75 bps, taking the funds rate to 4% tomorrow, but whether it will signal a slowdown from December remains a focus.  

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  • Growth stocks remained underperformed, with Nasdaq down 0.89%. 6 out of the 11 sectors in the S&P 500 finished lower, with Consumer Discretionary and Communication Services leading losses, both of which were down more than 1%, while the energy sector outperformed again, up 1%. Both Amazon and Alphabet fell to a 52-week low due to the selloff in the tech sector, and Apple slip 2%, sliding for the second straight trading day due to production concerns. Meanwhile, Meta Platforms and Snap jumped more than 2% and 3%, respectively, on a report that the FCC commissioner calls on the government to ban TikTok.
  • Uber’s shares soared 15% due to a beat on the revenue expectation, along with positive guidance. The company reported EPS at 61 cents loss and revenue at $8.34 billion, or a 72% growth year over year. It had a net loss of $1.2 billion in the third quarter, with $512 million due to revaluations of its equity investments. CEO Dara Khosrowshahi expects a strong October due to booming travel, easing lockdowns and shifts in consumer spending. 
  • AMD slightly missed the third-quarter revenue expectation due to weakened PC demands. The chipmaker’s EPS came to $0.67, less than an estimated $0.68. And the revenue is at $5.6 billion, lower than the $5.65 billion expected. Its share prices fell slightly after-hours as the company preannounced its miss on revenue earlier in October. And its strong gaming and data centre revenue has offset the PC slump.
  • Bank of England smoothly commenced its quantitative tightening by selling £750 million worth of bonds, with the 10-year gilt yields falling slightly to 3.46%, suggesting that the government bonds are still in strong demand.
  • Chinese stocks soared on the unofficial social post of Covid-Zero-Exit, with Hang Seng Index surging more than 5% on Tuesday. All the Chinese tech shares, including Alibaba, Baidu, JD.com, Tencent, and Meituan jumped between 7-11% at HKEX.
  • Asian markets are set to open mixed ahead of the Fed’s pivotal event. ASX futures were up 0.07%. Nikkei 225 futures were down 0.47% and Hang Seng Index futures fell 0.30%. The Reserve Bank of Australia rose the OCR by 25 bps to 2.85%, warning higher-for-longer rate hikes to come amid sticky inflation on Tuesday.
  • The WTI futures jumped 2% on speculation of China’s Covid-Zero-Exist, along with better-than-expected Chinese Caixin manufacturing PMI data.  Hope for the Fed to slow down rate hikes also supported rebounding optimism in the oil markets.
  • Dogecoin soared another 10% following a 47% surge a day ago amid Elon’s takeover of Twitter. Both Bitcoin and Ethereum were slightly up, to just above 20,500 and 1,570, respectively.
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