US Markets
Stock markets were volatile on Wednesday but finished down after the Federal Reserve announced its third 75-basis point interest rate hike in a row.
- The S&P 500 is now down 10% in the last month and 21% from its all-time high.
- Every sector of the S&P 500 finished in the red, with communications, consumer, and materials stocks dragging down markets.
- The current 10 Year U.S. Treasury yield is set at 3.53090%
Market |
Price |
Move |
Dow Jones |
30,183.78 |
-1.70% |
S&P 500 |
3,789.93 |
-1.71% |
Nasdaq |
11,220.19 |
-1.79% |
Russell 2000 |
1,762.16 |
-1.42% |
Canadian Markets
Canadian stocks rose on Wednesday despite the decline in U.S. markets.
- Bank of Montreal’s chief of fixed income and money markets, Earl Davis, said there is a “99.9%” chance that the Federal Reserve’s interest rate hikes will cause a recession in the U.S.
- He argued that while it may be “a policy mistake,” central bankers may want to cause a recession because that may be the only way to control inflation.
- The Bank of Canada has been increasing interest rates more aggressively than the Federal Reserve and, as a result, Canada, unlike the U.S., has seen a decrease in inflation.
Market |
Price |
Move |
TSX |
19,430.67 |
0.32% |
European Markets
Stocks in Europe were up on Wednesday despite the negative moves in the U.S.
- The Stoxx 600 finished up nearly 1% after starting the day down almost 0.5%.
- Travel and Leisure stocks dragged down markets, losing 1.9%.
- Utility stocks outperformed all other sectors after gaining 1.8%.
Market |
Price |
Move |
Euro STOXX 50 |
3,479.04 |
0.34% |
UK (FTSE 100) |
7,233.70 |
0.57% |
Germany (DAX) |
12,712.75 |
0.33% |
France (CAC 40) |
6,006.17 |
0.45% |
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Asian Markets
Stocks in Asia were down on Wednesday due to the anticipation of the Federal Reserve interest rate hike that was announced after markets in Asia had closed.
- The Chinese economy continues to struggle as the county reassesses its Zero Covid policy, which has drawn criticism from citizens frustrated with the ongoing lockdowns.
- China is also suffering from a decrease in business from western countries as Beijing takes “ideological” decisions that undermine the interests of foreign companies.
- All major indexes in China saw losses, led by a decline in technology stocks, with the Hang Seng Tech index down 2.7%.
Market |
Price |
Move |
S&P Asia 50 |
4,165.64 |
-1.76% |
Japan (Nikkei 225) |
27,313.13 |
-1.36% |
South Korea (KOSPI) |
2,347.21 |
-0.87% |
China (Hang Seng) |
18,444.62 |
-1.79% |
India (SENSEX) |
59,456.78 |
-0.44% |
Commodities
Oil prices reached a nearly two-week low during U.S. trading hours on Wednesday due to the rise in interest rates.
- Prices rose significantly before trading began as Putin announced a major military mobilization in Ukraine.
- Brent crude lost 0.9% on Wednesday, while U.S. West Texas Intermediate was down 1.2%.
- During Asian trading hours, before U.S. markets opened, Brent gained nearly 3%.
Market |
Price |
Move |
Oil (NYSEARCA:OIL) |
30.50 |
2.38% |
Gold (NYSEARCA:GLD) |
155.53 |
0.30% |
Silver (NYSEARCA:SLV) |
17.93 |
1.10% |
Corn (NYSEARCA:CORN) |
27.36 |
-1.45% |
Lumber (NASDAQ:WOOD) |
69.58 |
-0.01% |
Currency Exchange Rates
The U.S. Dollar continued its rise, gaining against all major currencies after the Federal Reserve announced its interest rate hike.
- The Fed now projects that interest rates will hit 4.4% by the end of 2022 and continue to rise in 2023.
- The Fed expects that it will begin to cut rates in 2024.
- The U.S. Dollar Index is currently at a 20-year high after rising nearly 1% yesterday.
Market |
Price |
Move |
UK(GBP) |
£0.89 |
1.49% |
Europe (EURO) |
€1.02 |
1.89% |
Canada (Canadian Dollar) |
$1.35 |
1.62% |
Japan (Yen) |
¥144.08 |
0.60% |
Cryptocurrency
Bitcoin prices continued to fall on Wednesday due to the interest rate hike.
- Bitcoin is now below $19,000, at risk of crossing the $18,000 support level.
- Ethereum’s decline continued to outpace Bitcoin as it fell 3% during U.S. trading hours compared to a 1% decrease for Bitcoin.
- Kraken CEO Jesse Powell has announced that he will be stepping down.
Market |
Price |
Move |
Bitcoin |
$18,354.30 |
-6.21% |
Ethereum |
$1,242.95 |
-6.22% |
Litecoin |
$50.77 |
-3.00% |
Bitcoin Cash |
$110.11 |
-1.73% |
Good trading,
Chris Svorcik
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