Marketbites: U.K Playing a Dangerous Game With Financial Markets
MARKET PERFORMANCE:
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Portfolio Manager Commentary:
The stock market continued to fall on Tuesday with the S&P 500 hitting its lowest intraday point since November 2020. The driver of Tuesday's market action was likely uncertainty surrounding the stability of the U.K financial system as well as the continued escalation of the war in Ukraine.
The Bank of England (BOE) basically rescued the British financial market in the last week of September by stabilizing bonds that started to collapse over proposed tax cuts. According to recent comments from the Governor of the BOE, Andrew Bailey, the central bank will lift support measures at the end of this week. This means that investors have until Friday to shape up their portfolios exposed to bonds and leverage. It remains to be seen how this might impact markets this Friday and next week.
Over in Ukraine tensions remained high after Russian President Vladimir Putin threatened further missile strikes across Ukraine.
Looking ahead, earnings season gets underway this week. PepsiCo is on the docket for Wednesday and Delta Air Lines, Walgreens Boots Alliance, and BlackRock will give updates Thursday. JPMorgan, Wells Fargo, Morgan Stanley, and Citigroup will report on Friday.
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