| October 31, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Wall Street's Chilling Markets Charts: 'Rolling Recession,' QT Headwinds
Vildana Hajric and Katherine Greifeld - Bloomberg
Stock investors don't need to look far this Halloween to give themselves a fright.
Plenty has been scary on Wall Street this year, from the crash in equities that's sent some once-high-flying companies down 80% or more, to the spike in yields and the drubbing in cryptocurrencies.
Yet investors see many more potential hazards ahead. Here are some charts keeping Wall Street up at night:
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Derivatives Worth $1.9 Billion Sold to Koreans at Risk on China Stock Fall
Youkyung Lee - Bloomberg
About 2.7 trillion won ($1.9 billion) worth of equity-linked securities sold mostly to retail investors in South Korea are estimated to be at risk of capital losses due to the Hang Seng China Enterprises Index's drop below 5,000, according to Samsung Securities Co. analyst Jun Gyun.
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The Stock Market Could Surge on Any Good News, Lloyd Blankfein Says
Matthew Fox - Markets Insider
Former Goldman Sachs CEO Lloyd Blankfein reminded investors that despite all the bad news this year, the stock market could still move higher.
Investors have had to deal with a months-long bear market, where every meaningful rally ultimately unraveled and led to new lows. The S&P 500 was down 25% at its year-to-date low as investors continue to grapple with persistent inflation and an ever-tightening Federal Reserve.
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Oil funds trapped between low inventories and slowing economy
John Kemp - Reuters
Portfolio investors' oil positions are exhibiting significant week-to-week volatility as traders struggle to anticipate the net effect of an economic slowdown amid exceptionally low inventories of crude and diesel.
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Five of the worst ETF first-year performances are crypto-related
Steve Johnson - Financial Times
Crypto exchange traded funds account for five of the worst seven debuts in the history of the ETF industry.
The funds were launched in the heady days of 2021 â just in time for them for them to face the full force of 2022's market fury, Morningstar Direct data show.
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| | | | | | Exchanges | | | Market for Underlying Security Used for Openings on MIAX Options, MIAX Pearl Options and MIAX Emerald Options for Newly Listed Symbols Effective Monday, October 31, 2022
MIAX
Please refer to the Regulatory Circulars listed below for newly added symbols and the corresponding market for the underlying security used for openings on the MIAX Exchanges. The newly listed symbols will be available for trading beginning Monday, October 31, 2022.
/bit.ly/3NlNsQM
CME Group Announces First Day of Trading of EURSTR Futures
CME Group
CME Group, the world's leading derivatives marketplace, today announced the first day of trading of a new suite of overnight index futures based on the Euro Short-Term Rate (EURSTR). EURSTR futures provide an efficient way to hedge European money market rates, with contracts including EURSTR 3-Month futures and EURSTR 3-Month Single Contract Basis Spread futures, complemented with EURSTR vs SOFR inter-commodity spreads. These contracts enable granular price discovery across the forward curve, IBOR/OIS basis trading, as well as managing cross-country basis spreads and price differentials between the E.U. and U.S. interest rates.
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| | | | | | Regulation & Enforcement | | | U.S. throws out Libor-rigging charges against Hayes
Reuters
A New York judge has dismissed criminal charges against Tom Hayes, the British trader who became the face of the global Libor interest rate scandal.
The former UBS and Citigroup trader served more than five years in prison in Britain for conspiring to rig Libor (London interbank offered rate) - a benchmark used to set rates on trillions of dollars in loans, mortgages and derivatives.
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| | | | | | Moves | | | Senior Options Market Maker | Prime Trading, LLC
Prime Trading, LLC | LinkedIn
Prime Trading, LLC is a technology-driven, Chicago-based proprietary trading firm with access to markets across the globe. As the markets have evolved over the years, so has Prime - rapidly growing and strategically investing resources into our technology and talented staff to move our firm forward.
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| | | | | | Strategy | | | Will The Fed Push The S&P 500 Over 4000?
Mike O'Sullivan - Forbes
In the past three weeks the stock market has rallied from recent lows, in the context of extreme bearish sentiment. Not unlike the rallies we saw at the beginning of the second quarter and during August the expectation is that we now enjoy a bear market rally into the end of this year.
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'Junky' Stocks Have Rallied. Why They Could Falter Soon.
Jacob Sonenshine - Barron's
"Junky" stocks have been the market's shiny object recently. A more hawkish than expected Federal Reserve could cause the rally in reverse.
Junkier stocks are those that carry relatively high risk compared with "quality" stocks. In this context, junkier names have the potential for larger swingsâup and downâin earnings and, therefore, price. The earnings of these companies can be highly sensitive to changes in economic demand or idiosyncratic factors. Whatever the reason, these companies have a lot of "earnings turbulence," note the strategists at 22V Research, who emphasize that these types of stocks have outperformed recently.
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Don't Expect Fed To Pivot At This Week's Meeting
Michael Kramer - Investing.com
The week of October 31 is going to be a tough one. There is a ton of economic data and earnings and an FOMC and BOE meeting. Tuesday is the day the fun begins with JOLTS and the ISM data. The ISM data on Monday will be tricky because it is forecast to come in at 50, which is the level that separates a sector in contraction or expansion. But I always like to look at what it equates to on a real GDP growth basis, which is noted in the actual press release. It is a better indication of the economy. So read the press release!
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| | | | | | Miscellaneous | | | Inside the Republican Jockeying to Be Wall Street's New Congressional Overseers
Jesse Westbrook and Robert Schmidt - TABB Forum
With the Republicans expected take control of the House of Representatives after the mid-term elections, U.S. Rep. Patrick McHenry (R-N.C.) is almost assured to become chairman of the Financial Services Committee. But who else falls in line is a question mark, write Capital Account Co-Founders Jesse Westbrook and Robert Schmidt. In this article, the two co-editors provide their insiders' analysis on what could happen next.
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