Wall St lower after FedEx further frays investors nerves

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Oanda’s Edward Moya cautioned against reading too much into Fedex’s troubles. “FedEx might have a couple tough quarters ahead of it, but this should not be the story that indicates doom and gloom times are here to stay.”

The yield on the US 10-year note was unchanged at 3.45 per cent at 4.59pm in New York. The Bloomberg dollar spot index slipped 0.05 per cent.

Separately, the inflation debate continues unabated. The University of Michigan’s latest survey found that “with continued declines in energy prices, the median expected year-ahead inflation rate declined to 4.6 per cent, the lowest reading since last September”.

“At 2.8 per cent, median long run inflation expectations fell below the 2.9-3.1 per cent range for the first time since July 2021. However, it is unclear if these improvements will persist, as consumers continued to exhibit substantial uncertainty over the future trajectory of prices.”

Jeffrey Roach, chief economist at LPL Financial, said tighter monetary policy is working its way through the real economy, suppressing consumer demand for large ticket items. ”

“The Fed may achieve its goal of a ‘Goldilock’ soft landing as consumer demand is neither too hot nor too cold,” Roach said in a note. “Consumers are showing amazing resiliency as buying conditions for major ticket items are better than the June lows but still look weak.”

Fundstrat Global’s Tom Lee retains his bullish outlook: “If inflation has indeed peaked, this is important for arguing stocks have already made their low, or at least their structural low.”

Daily News | Online News Market highlights

ASX futures down 7 points or 0.1 per cent to 6732 near 7am AEST

  • AUD +0.2% to 67.16 US cents
  • Bitcoin -0.6% to $US19,727 at 7am AEST
  • On Wall St: Dow -0.5% S&P 500 -0.7% Nasdaq -0.9%
  • In New York: BHP -1.4% Rio -0.3% Atlassian -4%
  • Tesla -0.1% Apple -1.1% Amazon -2.1% Fedex -21.4%
  • In Europe: Stoxx 50 -1.2% FTSE -0.6% CAC -1.3% DAX -1.7%
  • Spot gold +0.6% to $US1675.06/oz at 4.59pm New York time
  • Brent crude +0.8% to $US91.54 a barrel
  • Iron ore -2.6% to $US98.45 a tonne
  • 10-year yield: US 3.45% Australia 3.72% Germany 1.75%
  • US prices as of 4.59pm in New York

Daily News | Online News United States

Consumers expect prices will climb at an annual rate of 2.8 per cent over the next five to 10 years, the lowest since July 2021, according to a survey from the University of Michigan. They see costs rising 4.6 per cent over the next year, the lowest since last September, data showed.

The current conditions gauge rose slightly to 58.9, the highest since May. A measure of expectations increased to 59.9 this month, the highest since April.

The University of Michigan’s preliminary sentiment index also climbed to the highest since April, with a reading of 59.5.

Daily News | Online News Europe

European shares slid 1.6 per cent on Friday as recession warnings from two major global financial institutions knocked sentiment.

The continent-wide STOXX 600 had its worst week in three months, down 2.9 per cent.

Except real estate stocks, all major sectoral indexes were in negative territory, with industrials, healthcare and financials dragging the most.

Delivery and logistics firms tumbled after Fedex’s warning. Shares of Deutsche Post, Kuehne & Nagel, DSV Panalpina and Royal Mail slumped between 4 per cent and 8 per cent.

The STOXX 600 has shed 1.7 per cent in September so far, heading for its second straight monthly slide.

UK’s FTSE 100 index fell 0.6 per cent after data showed retail sales fell much more than expected in August, in another sign that the British economy is heading into recession.

The Bank of England will meet next week. Market pricing indicates a slightly higher chance of a 75-basis-point hike than a 50-basis-point jump.

Daily News | Online News Commodities

BHP Group is considering raising its $8.4 billion offer for OZ Minerals, people familiar with the matter told Bloomberg as the world’s top miner seeks to boost its exposure to metals needed for the green-energy transition.

Melbourne-based BHP may increase its $25 per share bid for OZ Minerals as soon as this month, the people said, asking not to be identified as the matter is private. It wasn’t immediately clear by how much BHP would increase its offer, or whether OZ Minerals would agree to any renewed proposal from BHP.

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