US futures dropped, suggesting the selloff that drove the S&P 500 index to its lowest close in about two months on Thursday isn’t over yet. Europe’s benchmark share gauge headed for a fourth day of losses. Stocks slumped in Japan, Hong Kong and mainland China, with little impact on sentiment from Chinese industrial-production and retail-sales data that beat expectations.
“Everything points to another 75 basis-point rate hike by the Fed when it meets next week. The likelihood that it will have to go ‘big’ again in November is elevated, too,” said Raphael Olszyna-Marzys, an economist at Bank J Safra Sarasin. “What’s more, its new projections should indicate that the fight against inflation will be more painful than previously acknowledged.”
Adding to concerns about a slowing economy, package-delivery giant FedEx Corp. withdrew its earnings forecast, citing weakness in Asia and challenges in Europe as it pulled its prior outlook and reported preliminary results for the latest quarter that fell well short of Wall Street’s expectations. Business conditions could deteriorate further in the current period, FedEx said.
The only reason inflation is rising and we are heading for a recession is very simple Govt spending. Gov’ts and National Bankers are destroying the economy not the people they are just suffering because of it.