Normally, the last day of the week can be quite dull, but this Friday is not the case! Volatility remained high throughout the week and this Friday the markets mainly focused on a few important events:
✅ S&P 500 roars back from a six-day slide
✅ Pound hits record low after tax cut plans
✅ Italy’s elections threaten to send Euro in GBP’s footsteps
And others!
So, let’s take a look at the economic news digest of the week right now! 👇🏻
S&P 500 roars back from a six-day slide, the largest climb in almost 2 weeks!
US stocks and Treasuries rallied on Wednesday after the Bank of England’s decision to stage a market intervention boosted UK bonds and tentatively calmed markets.
The S&P 500 snapped a six-day rout. It rose the most since early last month, and for the first time since the Federal Reserve boosted rates and dialled up its hawkishness a week ago. The index jumped more than 2% later in the session, bolstered by gains in Amazon.com Inc.’s shares after the company’s annual device event on Wednesday showed it pushing further into wellness, security, and the auto industry.
🤔 The rally is probably not over 💡 And this could be a good opportunity for those looking for a signal to open a trade.
Pound hits record low after tax cut plans
Sterling ($GBP/USD) briefly fell 4% to an all-time low of $1.0382 on Monday in Asia, continuing its sluggish trade in recent months as the U.S. dollar strengthens.
The British pound plunged to a record 📉 low, following last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.
The lack of commitment to fiscal discipline in the U.K., along with the strong dollar, led to the pound weakening sharply, said Saktiandi Supaat, the strategist at Maybank.
Italy’s elections threaten to send Euro in GBP’s footsteps
As expected, the far right political group, Brothers of Italy, has won the Italian parliamentary elections, and its leader Giorgia Meloni will soon become the country’s new prime minister. Experts expect the new government will start cutting taxes to support economic growth, which will lead to a new increase in the budget deficit, which may violate Eurozone budget rules and complicate relations between Rome and Brussels.
EUR/USD finds support but can the Euro regain some lost ground?
Starbucks boosts dividend by 8%
Starbucks Corp. announced that it was boosting its quarterly dividend to 53 cents a share from 49 cents a share. The new dividend takes effect with the payment that’s set to be distributed Nov. 25. It applies to shareholders of record as of Nov. 11. The 8% dividend increase lifts Starbucks’ annual payout to $2.12 a share.
The stock was up 0.1% in after-hours trading Wednesday after rising 3.4% in the regular session. It’s lost 26% so far this year as the S&P 500 has dropped 22%.
What’s up next week?
Have a great weekend and see you next week!
