One of the biggest topics in financial news this week is the yield curve. The yield curve represents the yields on U.S. Treasury bills and bonds. It is typically upward sloping, indicating that investors are paying a higher rate of interest for locking their money away for longer periods of time.
The Russian-Ukraine conflict and the possibility of higher interest rates are also among the topics discussed this week. Soledad and Jean touch on everything that happened in the world of finance. It’s a busy time for financial news, and it’s easy to get caught up. The news this week can help you make informed decisions.
Another topic in financial news this week focused on hedge funds and retail investors. Short sellers are investors who borrow stocks from companies and then sell them at a lower price when the price of the stock decreases. This puts pressure on companies to meet investor expectations and encourages dishonest financial reporting. However, some people are unsure of the impact of this trend.
While the global economic news this week was mostly negative, there were positive moments. On one hand, the US labour department reported mounting job losses, which suggests that the world’s largest economy is still in trouble. However, the stock market continued to rise, with one of its best quarters in history. Nonetheless, investors should be cautious when it comes to investing in stocks.
The ECB is expected to start incentivizing banks to return emergency cash by the end of November. This is a big step, and it could lead to bond runoffs in the future. This would be particularly worrying for Italy, which has a high debt load and a high current account deficit. However, this could be avoided by the anti-fragmentation tool that the ECB is using to limit the spread of peripheral yields.
Despite the recent negative economic news, the Federal Reserve extended its monetary policy this week. The Fed voted on Thursday to keep benchmark interest rates near zero and continue its bond-buying program. This should keep cheap credit flowing to businesses that are struggling during the pandemic. The Fed acknowledged that a strong and sustained labor recovery will be crucial to economic growth.
Other positive financial news this week included a report on GameStop. This is part of a larger trend that has seen investors pile into’meme’ stocks. Other companies with a recent uptrend include Nokia, Best Buy, Blackberry, and AMC Entertainment. AMC Entertainment, on the other hand, was shorted heavily by Wall Street investors. As a result, its stock soared, as did GameStop’s.