Markets Right Now: Stocks plunge again, Dow sinks 464 points

21 December, 2018, 19:18 | Author: Dave Hampton
  • Federal Reserve raises interest rates, signals fewer hikes ahead

USA stocks declined sharply on Wednesday after the Federal Reserve's forecast of fewer interest-rate increases in 2019 fell short of investors' hopes of a more dovish monetary policy.

Federal Reserve raises benchmark interest rate by 0.25%p, target range standing at 2.25~2.50%.

The rate hike came a day after Mr Trump urged the Fed not to "make yet another mistake", while on Monday he said it was "incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us. the Fed is even considering yet another rate hike".

Despite the forecast for fewer hikes, investors sent stocks plunging once Chairman Jerome Powell began a news conference, apparently disappointed that Powell didn't go further to signal a slowdown in rate increases.

"Economic activity has been rising at a strong rate", the central bank said in a statement issued after the meeting.

The US Fed raised its target rate by a quarter point in its latest policy move and said it expects two more rate hikes for next year, down from three rate hikes previously.

US Indicts Chinese Nationals Over Global Hack Campaign
Intrusion Truth also doxxed APT3 members months before they were formally charged by the United States in 2017. More than 245 organizations were attacked, including NASA labs and US Navy networks.

The Nikkei declined to 20,015.67 points, putting its loss for the year at almost 13 percent, while the Shanghai index declined to 2,512.54.

Investors are growing anxious that global economic growth is cooling off and that the US could slip into a recession in the next few years.

Members also lowered their forecast for interest rates in 2020 and 2021.

Overall, the FOMC saw the median Fed funds rate at 2.4% at the end of 2018, no change given that this was the last meeting of the year.

Following the decision, stocks erased gains, 10-year Treasury yields fell and the dollar bounced off its lows of the day.

"We expect additional rate hikes will invert the three-months to 10-year yield curve, which is a reliable signal for a bear market for stocks and a coming recession for both the USA and the rest of the world", said Jeffrey Kleintop, chief investment strategist at Charles Schwab in Boston.

Facebook allowed Netflix, Spotify to access private user messages
Amazon, Microsoft and Yahoo representatives told the Times that they used the data appropriately, without further elaboration. The agency said in March it was looking into whether Facebook engaged in unfair acts that might have violated the decree.

Bond prices rose, sending yields lower. That's a substantial move for that benchmark lending rate. Powell thus doesn't seem to be fazed by the prospect of moving beyond what some consider is the neutral rate, which means markets may now underprice the commitment of the Fed to two rate hikes during 2019. An easing of monetary policy going forward should be supportive of the precious metals sector as the attractiveness of the dollar fades; however, today, we now have a rate hike and gold has slipped and the dollar has improved.

Banks and consumer discretionary stocks were the biggest drag on the market fro most of the session, with ANZ, NAB and Westpac all down more than one per cent.

On Wednesday, officials did cut their forecasts for economic growth in 2019 to 2.3 per cent, down from the 2.5 per cent they anticipated in September.

The S&P 500 fell 36 points, or 1.4 per cent, to 2,471. Major economies are weakening, and fears of a crisis are now hitting the market, as seen by the many sell-offs this week.

The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for United States growth and inflation.

However, in a sign of the extent to which markets are anxious about the state of the global economy, even a more dovish tilt from the Fed at its policy meeting on Wednesday failed to buoy equities.

Brexit vote in Parliament to happen before January 21 - PM May's spokeswoman
BBC political correspondent Chris Mason said Mrs May's criticism of the former Labour prime minister was striking for its anger. Prominent Brexiteers like International Development Secretary Penny Mordaunt also look set to make their views known.

The Federal Open Market Committee "will continue to monitor global economic and financial developments and assess their implications for the economic outlook", the statement said.

Recommended:

  • Priyanka and Jonas host second wedding reception in Mumbai

    Priyanka and Jonas host second wedding reception in Mumbai

    The same is happening with their Mumbai reception too , where the newlyweds have been hogging all limelight with their love. Priyanka and Nick soon hosted a Delhi reception post their wedding , where they looked too attractive for words.
    Porch pirates face justice from glitter bomb vigilante

    Porch pirates face justice from glitter bomb vigilante

    Rober made a decision to record videos of people attempting to steal the device, which has been in the Apple Homepod box. He also installed four smart phones that would track the package location and record the encounter.
    PM under pressure as Corbyn threatens no-confidence vote

    PM under pressure as Corbyn threatens no-confidence vote

    It is unacceptable for the country to wait another month before Parliament has the chance to vote on Theresa May's botched deal. The Labour leader is threatening the motion unless the Prime Minister sets a date for the vote on her Brexit deal today.
  • Arsenal boss Unai Emery quiet on Mesut Ozil future after 'tactical' benching

    Arsenal boss Unai Emery quiet on Mesut Ozil future after 'tactical' benching

    Alli turned scorer with a deft chip just before the hour, although the England midfielder was later hit by a bottle thrown from the crowd.
    City have their verve back, says Sane

    City have their verve back, says Sane

    He's an outstanding young player, I think England has a diamond . "Over 90 minutes, Phil was incredible the way he played". Sane , however, could have had a hat-trick had he not passed up a shooting chance on another lightning break from deep.
    Japan restaurant explosion: More than 40 injured

    Japan restaurant explosion: More than 40 injured

    Forty-two people have been injured in a suspected gas explosion at a restaurant in Japan , according to police and local media. According to broadcaster NHK, it took firefighters several hours to extinguish the blaze that broke out after the explosion.
  • DC sues Facebook over Cambridge Analytica scandal

    DC sues Facebook over Cambridge Analytica scandal

    The suit alleges that Facebook misled users about the security of their data and failed to properly monitor third-party apps. Context: Zuckerberg's drop in net worth is because of multiple scandals plaguing his company, Facebook.
    Russian Federation  waged web campaign to swing U.S.  election result

    Russian Federation waged web campaign to swing U.S. election result

    The effort was urge them - African Americans and supporters of Bernie Sanders - to shun Hillary Clinton . Trump has denied any collusion between Russian Federation and his campaign.
    Lawyer: Mueller can interview Trump 'over my dead body'

    Lawyer: Mueller can interview Trump 'over my dead body'

    In his statement ahead of his sentencing, Cohen, at times close to tears, apologized and said "blind loyalty" to Mr. The plea deal is quite problematic for the president.
  • DHS: Immigrants seeking asylum in USA  will be sent to Mexico

    DHS: Immigrants seeking asylum in USA will be sent to Mexico

    Nielsen said the Mexican government, which will now be forced to deal with the migrants, has been informed of the U.S. decision. Thursday's decision marks the latest in an unusual relationship between Lopez Obrador, a leftist and nationalist, and Trump.
    McConnell Confident That A Government Shutdown Will Be Averted

    McConnell Confident That A Government Shutdown Will Be Averted

    Wyoming Senator John Barrasso said that Republicans remained hopeful they could make a proposal acceptable to Trump. Behind the scenes, Republican aides were furious that Trump has, yet again, proven an unreliable governing partner.
    India captain Virat Kohli 'looking silly' after verbals with Australia in Perth

    India captain Virat Kohli 'looking silly' after verbals with Australia in Perth

    Melbourne will host the traditional Boxing Day Test before the final match is played at the Sydney Cricket Ground from January 3. We thought four quicks would be enough. 'We didn't play with the same intensity as we did in the first test match, ' Kohli added.


Popular

Nintendo Switch is the fastest-selling video game system of this generation
For the second time in as many months, Nintendo's PR push focused on the USA only and didn't provide any updated global numbers. Nintendo said that since the system's launch in March 2017 to November 2018, Nintendo sold more than 8.7 million units.

Gatwick Airport: Drone sightings halt flights
All departures and arrivals were suspended at about 9pm last night after the drones were seen flying above the airport. It wasn't immediately clear how many flights were affected in total, said Mr Mark Lever, a Gatwick spokesman.

EPL: Guardiola reacts as Manchester United sack Mourinho
Jose Mourinho has declared "I have a future without Manchester United " after a door stop interview this afternoon. But Zidane has also been repeatedly linked with United after quitting as Real Madrid boss in the summer.

How to Watch Kashima Antlers vs. Real Madrid
It was great to core three goals but the vital thing for me is to get my team into the final. Whether he returns to Madrid is not up to me.

Manchester United Accidentally Announce New Coach?
United reached the last 16 in the Champions League , where it will play Paris Saint-Germain over two legs in February and March. It is believed Phelan will be Solkjaer's assistant at United until the end of the Premier League season.

Vikings have four Pro Bowl players, including WR Thielen
Madison started the Pro Bowls following the 1999-2001 seasons, while Surtain started the Pro Bowls following the 2002-03 seasons. His 11 interceptions since Week 13 of the 2017 season are two more than any other National Football League player in that span.

Klopp: I can not keep every Liverpool player happy
Ince, who played 281 times for United , believes that the club are being too lenient when handing out multi-million-pound deals. He is simply not good enough to wear a Manchester United shirt.

China temporarily suspends tariffs on U.S
Apple Inc has so far avoided tariffs on popular products it manufactures in China such as the iPhone and Apple Watch. Two Canadians were detained in China on Monday in what many experts say was retaliation for Canada's arrest of Meng.

Trump argues he ‘never directed’ longtime fixer to break law
During an earlier interview on Fox News on Thursday, Lanny Davis, an adviser to Cohen , said Trump's credibility is questionable. The evidence, Cohen said, is on his side, as the special counsel's statement about the credibility of his claims suggests.

Comey on Capitol Hill: GOP's 'Silence Is Shameful' as FBI Attacked
Democrats see the grilling as a purely political move by Republicans, after they lost the majority in the midterms. A transcript released after Comey's first interview showed a heavy focus on the Clinton email probe.