Bond yields worldwide stabilized Tuesday after extending the biggest gains in seven decades.
The U.K. 10-year yield, which has skyrocketed since Friday when the new British government announced a series of big tax cuts, pulled back to 4.052%, down from as high as 4.282% on Monday. The U.S. 10-year Treasury yield was little changed at 3.838%. German and Japanese 10-year bonds also were little changed.
'Financial markets are throwing in the towel': Recession fears escalate as Fed slams brakes on the economy
The likelihood of sharply higher interest rates has tilted the odds toward another recession within a year, economists say. Yet some still hold out hope the U.S. can muddle through with a period of slow growth instead of outright decline.
In a move widely expected by financial markets, the Federal Reserve orchestrated another jumbo-size hike in U.S. interest rates last week. What was unexpected was the central's bank aggressive forecast for even higher rates in the year ahead.
Senate Democrats Release Text of Proposal to Avert Government Shutdown
Senate Democrats on Monday night released the text of the proposal that lawmakers could pass to avoid a government shutdown after federal funding runs out on Friday.
The 237-page continuing resolution, which was made public minutes before midnight by the Senate Committee on Appropriations, would extend current funding levels until Dec. 16.
World Bank Cuts China Growth Forecast as Covid-19, Real-Estate Crunch Take Toll
SINGAPORE-The World Bank said it expects developing economies in East Asia to grow faster than China this year for the first time since 1990, as the world's second-largest economy struggles with a real-estate crunch and the government's zero-tolerance approach to Covid-19.
The Washington, D.C.-based lender cut its forecast for Chinese growth this year but said it expects growth among 22 neighboring economies to more than double in 2022 compared with the pace they notched last year, as countries benefit from dismantling most Covid-19 restrictions and a revival in tourism.
China's Industrial Profits Drop Further
China's industrial profits fell 2.1% in January-August, widening from the 1.1% drop recorded in the first seven months of the year, data from the National Bureau of Statistics bureau showed.
The bigger year-over-year decline comes after China reported improved factory production, which rose 4.2% on year in August compared with July's 3.8% growth.
Sweden reports leaks on Nord Stream 1, shortly after damage found on Nord Stream 2
Swedish maritime authorities have warned of two leaks on Russia's Nord Stream 1 natural gas pipeline in Swedish and Danish territories, Reuters reports.
The leaks, located northeast of Danish island Bornholm, were reported shortly after another report of an overnight gas leak from the non-operational Nord Stream 2 pipeline.
Ukraine's Zelensky Urges Russians to Keep Protesting Mobilization Orders
Kyiv reiterated calls for Russian men summoned to fight in Ukraine to lay down their arms as soon as they arrive in the country, as protests against mobilization continued in Russia and authorities there sought to curb an exodus of fighting-age males.
In a video address late Sunday, Ukrainian President Volodymyr Zelensky called on Russians to continue protesting against the draft and urged them to desert or give themselves up to Ukrainian troops as prisoners of war. Ukraine has pledged to treat Russian POWs fairly.
Jan. 6 Committee Hearings Enter Final Phase Wednesday
The House select committee investigating the Jan. 6, 2021, riot at the Capitol is set to reconvene its next live hearing Wednesday, putting the finishing touches on its case that former President Donald Trump was at the center of a plan to overturn the 2020 presidential election.
Since its last hearing in late July, the panel has continued to interview witnesses, collect documents and seek out new evidence about the months-long effort to overturn the election. Committee members said that as the eight summer hearings were wrapping up, new witnesses were coming forward to provide information.
Biden's Student-Loan Forgiveness Plan Could Cost $400 Billion, CBO Says
President Biden's plan to cancel student debt for some borrowers will cost the federal government an additional $400 billion, according to the nonpartisan Congressional Budget Office.
The estimates released Monday are the latest to put a price tag on the administration's student-loan-modification plans, in the absence of a detailed accounting from the White House. A range of analyst estimates reflects the considerable complexity of projecting the performance of the federal government's student-loan portfolio, and raises questions about how the moves will ultimately affect the federal budget.
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Expected Major Events for Tuesday
06:00/JPN: Aug Revised Machine Tool Orders
08:00/ITA: Aug Foreign Trade non-EU
08:30/UK: 2Q Business Finance Review
08:59/JPN: Jul Final Labour Survey - Earnings, Employment & Hours Worked
12:30/US: Aug Advance Report on Durable Goods
12:55/US: 09/24 Johnson Redbook Retail Sales Index
13:00/US: Jul U.S. Monthly House Price Index
13:00/US: Jul S&P CoreLogic Case-Shiller Indices
14:00/US: Aug New Residential Sales
14:00/US: Sep Richmond Fed Business Activity Survey
14:00/US: Sep Consumer Confidence Index
17:00/US: Aug Money Stock Measures
20:30/US: 09/23 API Weekly Statistical Bulletin
23:01/UK: Sep Shop Price Index
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Expected Earnings for Tuesday
Allied Healthcare (AHPI) is expected to report for 4Q.
Aytu BioPharma Inc (AYTU) is expected to report for 4Q.
BlackBerry (BB,BB.T) is expected to report $-0.20 for 2Q.
Boku Inc (BOKU.LN) is expected to report for Interim.
Cal-Maine Foods Inc (CALM) is expected to report $2.55 for 1Q.
Cracker Barrel Old Country Store Inc (CBRL) is expected to report $1.33 for 4Q.
FTI Consulting (FCN) is expected to report $2.00 for 4Q.
Fonar Corp (FONR) is expected to report for 4Q.
Jabil Inc (JBL) is expected to report $1.93 for 4Q.
Matrix Service (MTRX) is expected to report $-0.14 for 4Q.
Neogen Corp (NEOG) is expected to report $0.11 for 1Q.
NetSol Technologies Inc (NTWK) is expected to report for 4Q.
Progress Software Corp (PRGS) is expected to report $0.44 for 3Q.
Schmitt Industries (SMIT) is expected to report for 4Q.
TD SYNNEX Corp (SNX) is expected to report $2.07 for 3Q.
Unico American (UNAM) is expected to report for 2Q.
United Natural Foods Inc (UNFI) is expected to report $1.20 for 4Q.
tinyBuild Inc (TBLD.LN) is expected to report for Interim.
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ANALYST RATINGS ACTIONS
Adtran Raised to Buy From Hold by Loop Capital
Ameresco Raised to Buy From Neutral by B of A Securities
Chegg Raised to Buy From Hold by Needham
Helmerich & Payne Raised to Equal-Weight From Underweight by Morgan Stanley
Immunovant Cut to Neutral From Buy by UBS
Las Vegas Sands Raised to Buy From Hold by Jefferies
Lyft Cut to Neutral From Buy by UBS
NexTier Oilfield Soltns Cut to Equal-Weight From Overweight by Morgan Stanley
Paymentus Holdings Cut to Neutral From Outperform by SMBC Nikko
Perella Weinberg Partners Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
Planet Fitness Raised to Strong Buy From Market Perform by Raymond James
Sotera Health Cut to Sector Weight From Overweight by Keybanc
Wynn Resorts Raised to Buy From Hold by Jefferies
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
September 27, 2022 05:58 ET (09:58 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.