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Banking Instability

All articles tagged with #banking instability

finance3 years ago•3 min saved

Small-cap stocks struggle amidst banking woes and tech success.

The small-cap Russell 2000 is down about 1% this year, compared to a rally that has boosted the S&P 500, an index representing the largest U.S. companies, 7% year-to-date. The weakness in shares of smaller companies is one of several signs that investors are uneasy about the economic outlook. Small caps have tended to waver ahead of economic weakness in the past. Since 1980, the Russell 2000 has lagged the S&P 500 by an average of about four percentage points in the six months after the economic cycle has peaked, ahead of a recession, according to Strategas data.

via Reuters|

#banking-instability #economic-outlook #finance

finance3 years ago•3 min saved

Investors Brace for Volatility Ahead Despite Positive Jobs Growth

Warren Buffett warns that the US economy is facing an inventory build-up as consumers are no longer splurging, which could lead to lower earnings for Berkshire Hathaway this year. Meanwhile, China's April exports grew 8.5% in US dollar terms, beating the 8% forecast, but imports fell 7.9% YoY. Banking fears persist amid high interest rates, with the Federal Reserve's most recent Financial Stability Report identifying banking-sector stress as a major economic fear. Additionally, concerns about persistent inflation and tighter monetary policy persist, while the specter of the US defaulting on its debt looms as Congress meets to discuss the issue.

via CNBC|

#banking-instability #debt-ceiling #finance

finance3 years ago•3 min saved

Investors Optimistic Despite Deceptive Calmness: The Week Ahead in Jobs Growth

Markets made fractional moves on Monday as concerns over banking instability, inflation, and the U.S. debt ceiling persist. Warren Buffett warns that consumers are no longer splurging, causing an inventory build-up in the companies that Berkshire Hathaway owns, and expects lower earnings this year. Despite this, Berkshire Hathaway's Q1 earnings jumped 12.6%. Oil prices have declined for three consecutive weeks due to fresh interest rate hikes and an unexpected contraction in China's April manufacturing activity. The Federal Reserve's most recent Financial Stability Report confirms that banking-sector stress is a significant economic fear. The U.S. Treasury Secretary warns of an "economic catastrophe" if Congress doesn't reach an agreement to raise the debt ceiling.

via CNBC|

#banking-instability #debt-ceiling #finance