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Global contraction, Fed under focus, GameStop Mania returns, bitcoin steady above $20k

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Global contraction, Fed under focus, GameStop Mania returns, bitcoin steady above $20k


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The US stock market is finishing October with a negative note, as Wall Street prepares for any Fed signs that they are close to the end of their tightening cycles. ​All major global manufacturing indicators show that the economic slowdown continues to worsen. ​ The appetite for risk is struggling today as China’s manufacturing data was ugly and surging European inflation basically guarantees a recession. Russia’s suspension of the grain deal also raises fears that the war in Ukraine could lead to further disruptions in wheat shipments. ​

​Contraction territory

It began in China and continued in Chicago. ​The global manufacturing sector is experiencing a contraction. ​China’s COVID crisis is causing a significant drop in factory activity. Europe is heading towards a recession and the US economy is beginning to feel the effects of Fed tightening and inflation. ​

China’s October PMIs were very disappointing and it suggests that given the current COVID struggles that November won’t be providing much relief. ​Official Chinese manufacturing readings fell from 50.1 to 49.5. ​

Some believe that the Chicago PMI report fell in October which could support calls to see an even bigger drop with ISM manufacturing readings tomorrow ….



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