Market Update: October 8, 2018

US stocks were mixed at the end of the trading on Monday after being firmly listed in the red.

The Dow (^ DJI) gained 0.15%, or 39.73 points at the close of trading on Monday, after losing more than 200 points earlier in the morning. The S & P 500 (^ GSPC) lost 0.04%, or 1.14 points. The Nasdaq (^ IXIC) fell by 0.67%, or 52.5 points, due to the sharp decline in technology stocks.

Some experts are still worried about last week's downturn in equity markets, mainly due to rising interest rates.

"Last week's message was clear in all markets: yields are rising but growth is likely to slow next year, which means portfolios must change," writes Michael Wilson, chief strategist in US Morgan Stanley shares. "Strong economic data and a tightening Fed continue to push both nominal and real US yields, highlighting end-of-cycle risks, capping stock market valuations and causing intra-market rotations." market in a sector and style base "

Friday, the Ministry of Labor announced that US companies had added 134,000 jobs in September, less than the 185,000 estimated by economists. However, the unemployment rate fell to 3.7%, its lowest level in almost five years.

Additional evidence of a tighter labor market – associated with statements by Federal Reserve Chairman Jerome Powell that the central bank is "far away" from lowering interest rates to a neutral level – worry about the risk of inflation, rising Treasury yields and dread stocks.

"While 2017 was marked by higher interest rates and accelerated growth, we believe that the stock market is now hitting real interest rates and economic growth that will slow down the year. next, "added Wilson. "We think this creates a turning point that explains many of the performance themes this week and lays the foundation for a regime change …"

US 10-year benchmark returns are above 3.2%, the highest level in seven years. The US bond market is closed on Mondays for a holiday.

NEWS: Chinese markets collapse after central bank intervention

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Chinese markets have slipped back from a week of vacation. The Shanghai Composite plunged 3.7% on Monday despite the Chinese central bank's decision to relax reserve ratio requirements to boost economic growth in the context of a trade war persistent with the United States. The reserve requirement ratio of some lenders has been reduced by one percentage point as of October 15, the People's Bank of China announced Sunday. "data-reactid =" 24 ">Chinese markets have slipped back from a week of vacation. The Shanghai Composite plunged 3.7% on Monday despite the Chinese central bank's decision to relax reserve ratio requirements to boost economic growth in the context of a trade war persistent with the United States. The reserve requirement ratio of some lenders has been reduced by one percentage point as of October 15, the People's Bank of China announced Sunday.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Google (GOOG) has exposed data from hundreds of thousands of Google+ users and then chose not to disclose the issue due to concerns over regulatory oversight and reputational damage, the Wall Street Journal reported on Monday. According to the report, an IT problem gave external developers potential access to private Google+ profile data between 2015 and March 2018. Google found no evidence of misuse of data, according to the Wall's report. Street Journal. Google announced Monday the closure of Google+ for consumers. "Data-reactid =" 36 ">Google (GOOG) has exposed data from hundreds of thousands of Google+ users and then chose not to disclose the issue due to concerns over regulatory oversight and reputational damage, the Wall Street Journal reported on Monday. According to the report, an IT problem gave external developers potential access to private Google+ profile data between 2015 and March 2018. Google found no evidence of misuse of data, according to the Wall's report. Street Journal. Google announced Monday the closure of Google+ for consumers.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Goldman Sachs (GS) would reduce its credit creation target for next year In its consumer segment, Marcus, according to information provided by Bloomberg, quoting anonymous people with knowledge of the projects. The personal online loan platform has lent more than US $ 4 billion since its launch in 2016, raising concerns about Marcus' situation at a time when consumers were finding it increasingly difficult to repay their loans. debts. The cuts planned for 2019 are based on current market conditions and are subject to change, according to a familiar person cited in the Bloomberg report. "Data-reactid =" 37 ">Goldman Sachs (GS) would reduce its credit creation target for next year In its consumer segment, Marcus, according to information provided by Bloomberg, quoting anonymous people with knowledge of the projects. The personal online loan platform has lent more than US $ 4 billion since its launch in 2016, raising concerns about Marcus' situation at a time when consumers were finding it increasingly difficult to repay their loans. debts. The cuts planned for 2019 are based on current market conditions and are subject to change, according to a familiar person cited in the Bloomberg report.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Department of Homeland Security stated that there was "no reason to doubt companies" notably Apple (AAPL) and Amazon (AMZN) who denied allegations made in a Bloomberg Businessweek article last week of malicious computer attacks from Chinese hackers. In its report, Bloomberg quoted 17 insiders of intelligence companies and unnamed companies, saying that Chinese spies had inserted chips into equipment used by about 30 companies and government agencies. Apple, Amazon and Super Micro Computer – a computer hardware manufacturer whose products, according to Bloomberg, have been implanted with malicious Chinese chips – have refuted these claims. "Data-reactid =" 38 ">The Department of Homeland Security stated that there was "no reason to doubt companies" including Apple (AAPL) and Amazon (AMZN) who denied allegations made in a Bloomberg Businessweek article last week about malicious computer attacks by Chinese hackers. In its report, Bloomberg quoted 17 insiders of intelligence companies and unnamed companies, saying that Chinese spies had inserted chips into equipment used by about 30 companies and government agencies. Apple, Amazon, and Super Micro Computer – a hardware manufacturer whose products, according to Bloomberg, had been implanted with malicious Chinese chips – have each refuted these claims.

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