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Stock slide on Wednesday – Majority of WEF economists say global recession likely – World shares slip on slowing China economy – Oil moves higher on China demand – Gold retreats as dollar gains
Stock futures traded lower on Tuesday, with the Dow Jones Industrial Average losing 105 points, or 0.3%, while the S&P 500 dropped 0.2% and Nasdaq-100 futures slipped 0.4%, CNBC reported.
Goldman Sachs Group Inc on Tuesday reported a larger-than-expected 69% drop in fourth-quarter profit, which sent its stock down more than 2% in premarket trading. Goldman reported a $1.67 billion full-year net loss from its platform solutions unit, while its income from investment banking fees fell 48% in the quarter, and its revenue from asset and wealth management unit dropped 27%, Yahoo Finance reported.
Shares of Morgan Stanley rose more than 1% in premarket trading after it announced its fourth-quarter earnings exceeded Wall Street expectations, largely boosted by the bank’s record revenue from its wealth management business. The company took in $12.75 billion versus the $12.64 billion expected, CNBC reported.
Oil futures rose on Tuesday as data confirmed a sharp slowdown in China’s economic growth last year, while investors anticipate demand for crude as the Asian nation eases its restrictions imposed during the pandemic, MarketWatch reported.
Futures for West Texas Intermediate crude rose 32 cents, or 0.4%, to $80.18 a barrel, while the global benchmark Brent crude was up 95 cents, or 1.1%, at $85.41 a barrel.
As the dollar ticked up, gold retreated for a second session on Tuesday. Investors still are seeking to find direction along the US Federal Reserve’s path of rate hikes, generating instability and uncertainty.
Spot gold slipped 0.3% to $1,912.29 per ounce, while U.S. gold futures fell 0.34% to $1,915.1, CNBC reported.
The benchmark US 10-Year Treasury Note was up +0.061 to yield at 3.572% as of 8:44 AM EST.
World shares moved mostly lower on Tuesday after China reported that its economy had only expanded at a pace of 3 percent last year, less than half of its rate for 2021. European shares declined, while Asian shares were mostly mixed while investors watched to see where Japan’s central bank would move its key interest rate, WHIO TV7 reported.
The World Economic Forum (WTF) released the results of its Chief Economist Outlook survey, which found that 63 percent of those polled indicated they expect the global economy to experience a recession this year, FOXBusiness reported. Of those 63 percent, 45% said a recession was “somewhat likely,” while 18% said a recession was “extremely likely.”
