Stock market news: markets post gains despite volatility

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Market indices: It was a volatile week, with big swings, but all 4 indices registered small gains.

“Stocks fell on Monday, with major indices falling more than 2% during the worst times of the afternoon session, as investors nervously watched the potential ripple effects of the bankruptcy. a large Chinese real estate company, as well as ongoing debates over the debt limit in Washington. The, or VIX, jumped more than 30% to its highest level since May, as a confluence of risks has upset the markets.

“Fears were mounting that Evergrande (OTC :), the Chinese real estate juggernaut, would collapse under a heavy debt burden, affecting shareholders, bondholders and potentially sparking unrest elsewhere in global markets. Meanwhile, heated debates in Washington over increasing the government borrowing limit based the tone of risk aversion in the markets. (Yahoo finance)

Reuters reported:

“Global equity markets rallied on Thursday and the US dollar retreated from month-long highs as concerns over China’s Evergrande contagion faded and investors digested Federal Reserve plans to curb US stimulus measures Norway’s central bank raised its benchmark and said it expected another hike in December, joining a growing list of countries moving away from emergency borrowing costs. The Norwegian krone strengthened against the euro to its highest since mid-June.

Volatility: The VIX fell 14.7% this week, ending the week at $ 17.75.

High dividend stocks: These high dividend stocks are ex-dividend this week: Prospect Capital (NASDAQ :), Main Street Capital (NYSE :), AGNC Investment (NASDAQ :), America First Tax Exempt Investors (NASDAQ :), Apollo Commercial Real Estate Finance ( NYSE) :), Ares Commercial Real Estate (NYSE :), B&G Foods (NYSE :), Broadmark Realty Capital (NYSE :), Chimera Investment (NYSE :), Crescent Capital BDC (NASDAQ :), Goldman Sachs BDC Closed End Fund (NYSE :), Ladder Capital Corp Class A (NYSE :), Owl Rock Capital (NYSE :), Starwood Property Trust (NYSE :), Stellus Capital Investment (NYSE :), TCG BDC (NASDAQ 🙂 and British American Tobacco ( NYSE :).

Market place : 14 out of 30 stocks rose last week, up from 9 last week. 56% of the increase, against 41% the previous week.

FOREX: The US fell against the and, and rose against other major currencies last week.

Weekly Forex Performance

Economic news

From the NY Times:

“The Federal Reserve has said it may soon slow down its large-scale purchases of government-guaranteed debt and has indicated it may raise interest rates in 2022. Federal Reserve officials said on Wednesday that they planned to soon slow down the asset purchases they used to support the economy and predicted they could raise interest rates next year, sending a clear signal that policymakers are bracing for s move away from full cash aid as the business environment recovers from the pandemic shock.

“If progress continues broadly as planned, the Committee believes that moderation in the pace of asset purchases may soon be warranted,” the Federal Open Market Policy-Making Committee said in its. The new wording removed wording that had promised to assess progress in “next meetings”, suggesting that a formal announcement of the slowdown could come as early as the next central bank meeting in November.

“Fed officials face a complicated backdrop nearly 20 months after the coronavirus pandemic first rocked the US economy. Business has rebounded as consumers spend heavily, aided by repeated government checks and other benefits.But the virus persists and many adults do not fully return to normal.

“The Fed has been keeping interest rates at their lowest since March 2020 and buying $ 120 billion in government-guaranteed bonds each month, policies that work together to keep many types of borrowing low. This fueled loans and spending and spurred economic growth.

“My view would be that the substantial progress test for the job is almost met,” said Powell. “I think if the economy continues to grow broadly as expected, and the overall picture is also appropriate for that, I think we could easily move forward at the next meeting – or not, depending on whether we believe that these tests are satisfied. “

“Policymakers have also discussed the pace of the slowdown in asset purchases,” said Powell, with officials largely expecting the overall bond-buying program to end by the middle of next year. . ”

Economic calendar

Highlights of the coming week: It will be a data-heavy week, with several reports on housing, number and mfg. and cargo reports due.

U.S. economic reports for the coming week

US Economic Reports Next Week
US Economic Reports Next Week

Sectors: and led by a wide margin last week, with the steepest fall again.

Sectors-Weekly performance
Sectors-Weekly performance

Futures contracts: Crude rose 7%, ending at $ 73.95, its highest level since July.

“Last week the United States fell 3.5 million barrels to 414 million barrels, the lowest since October 2018, the EIA reported on Wednesday. The report was broadly bullish as crude supplies” will only get worse in the coming weeks ”as inventories are“ stretched and refiners are coming back faster than the supply of crude oil in the Gulf of Mexico. ”(YahooFinance)

Weekly Performance of Futures
Weekly Performance of Futures


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