Rates are rising and economies are slowing around the world and investors recalibrate earnings outlook and readjust valuations. Energy sector led the losers as crude oil dropped more than 5%.

European markets accelerated declines as central banks intensify campaign to tame high inflation. Bond yields rose across the eurozone and in the U.K. on the rising deficit worries. Energy prices declined 3%.

Major averages on Wall Street extended losses on the fourth day and are set to close down for the second week in a row. Crude oil and natural gas prices eased on recession worries and the U.S. dollar advanced to a new 2-year high.

Stocks fell on the worries that high inflation is still ruling the economy after five rate hikes over six months and more hikes may just dip the economy to a recession without breaking the back of inflation.

The parent of Yard House and Bahama Breeze reiterated its fiscal 2023 outlook and estimated price increase of 6% across all brands. Quarterly net income declined on rising cost of food and labor.


Switzerland stepped out of the negative rate regime after inflation jumped to 3-decade high last month. Norway indicated future rates are likely to be moderate. The UK rates are still lagging by a wide margin to consumer price inflation.

Stocks on Wall Street accelerated declines as investors digest the implications of recent large rate hikes and future rate paths. The Fed reiterated its commitment to bring down inflation but six months of monetary tightening is having a minimal impact on inflation.

The Federal Reserve lifted rates by a large amount for the third time in a row, sharply lowered its 2022 growth outlook and revised higher unemployment rate estimate. The interest rates are likely to go up by least another 125 basis points by the end of 2022.

The Federal Reserve increased the key lending rate by 75 basis points for third time in a row and revised the fed funds target range between 3% and 3.25%. The Fed held out for more ongoing rate increases in the target range.

Apogee Enterprises lifted its annual outlook. Chemours lowered its annual view. Stitch Fix swung to a quarterly loss and a decline in revenues.


European Stocks Extend Gains, Energy Prices Jump

Sep 21, 2022
Bridgette Randall
European markets traded higher tracking the rise in U.S. indexes. Energy prices advanced on the rising tensions with Russia and natural gas prices stayed above 200 euro-mark. Germany following France nationalized its natural gas based electric utility company.

Stocks on Wall Street traded higher with all eyes on Fed's rate decision and comments on future rate paths. Fed is not only battling sky-high inflation but also its diminished credibility in tackling rapid price increases.

Treasury yields rise ahead of the Fed's rate-hike decision on Wednesday. and investors seek a deeper understanding of the future rate path and inner workings of the economy.

Oxford, the parent of Tommy Bahama, lifted its annual earnings and sales outlook. Ford said costs are running ahead of expectation this quarter. A federal judge rejected Optum's plan to acquire Change Healthcare.

Oxford acquired California-based Johnny Was and lifted sales and adjusted earnings outlook for the fiscal third quarter and 2022.

European markets dropped after Sweden lifted its key lending rates by 100 basis points and wholesale price increase accelerated in Germany.