🧸No end to fear: It’s up to the Fed🗽

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The equity market continued to slide into negative territory even after a two-day decline as investors were wary and growing concerned about the Fed’s monetary policy. However, there is a general acceptance that the Fed may persist in tightening the economy even as economic data weakens.

While we expect a smaller hike going into the Dec FOMC meeting, odds are higher now on possible more rate hikes, thus pushing the terminal interest rate to a fresh high, possibly beyond the 5% expected. This fear is ignited by November’s job gain and firm wage growth.

A breather set place, possibly temporarily, is the bond market which saw yield calming. However, Pika World remains highly cautious in a current turbulent wave as we await the upcoming CPI figure.

🍏More Covid-19 easing in China💎

The week presents great light on China’s Covid-19 policy. After a year of immense business disruption, the world’s second-largest economy is prepared to gather steam on its economy with new relaxation on quarantine measures in place.

China appeared not to have sufficient ICU beds should a massive outbreak occur. Thus, the government has been slow and made more calculated measures to manage Covid-19 with its existing medical infrastructure capacity. There is a greater drive to inoculate its elderly population as momentum is gaining speed once more.

Pika World continues to be hopeful of a modest recovery in the Chinese economy.

🚘Carvana: Great distress with debt💣

As news of a possible restructuring of its debt broke out, the online car retailer saw its shares dive more than 40%, as the outcome of such restructuring could lead to equity bankruptcy.

While the company is on the road towards implementing plans to shift gear into profitability, shareholders and creditors appear to have thinning patience with the company.