Stock Markets

Stocks under pressure as investors play terminal rates guessing game

Published

10 months ago

June 24, 2023

Global stocks were poised to end the week lower on Friday as investors bet on interest rates remaining higher for longer to quell stubborn inflation, helping to lift the dollar and send oil tumbling.

Euro zone government bond yields fell on news that German business activity slowed notably in June, while French business activity contracted this month for the first time in five months.

There was also worrying economic news in Asia with Japan’s core consumer inflation exceeding forecasts in May.

Gold steadied after trading near a three month low and was set for its biggest weekly drop since February as the greenback was buoyed by hints from U.S. Federal Reserve Chief Jerome Powell of more rate hikes to come.

The MSCI All Country stock index was down 0.38% at 673.66 points, and off 1.6% for the week, though still up 11.5% for the year. “We are probably close to peak terminal interest rates for the Federal Reserve and Bank of England, but there is a feeling that central banks are prepared to risk a recession to try get core prices lower,” said Mike Hewson, chief markets strategist at CMC Markets.

“The idea that we get rate cuts in 2024 is starting to give in to the realisation that we are in for a much longer period of rates at current levels, and that is causing a revaluation of stock markets,” Hewson said.

In Europe, the STOXX 600 index was down slightly and set to end the week lower.

With a lack of stimulus for China’s sputtering recovery, recent unexpected hikes in Australia and Canada, and the Federal Reserve’s forecast of two more rate hikes, the growth fears are global.

“Central bankers are saying they have a very strong willingness to tame inflation and markets are believing this,” said Kevin Thozet, a member of the investment committee at Carmignac.

Investors, however, should keep a cool head because economic growth was not falling off a cliff, disinflation was on its way, long-term bond yields were behaving well, and central banks are near the end of their rate tightening cycle, Thozet said.

S&P 500 futures were down 0.4%.

OIL DOWN, DOLLAR UP

Oil prices fell for a second straight session and were headed for a weekly decline of more than 3% as a more hawkish tone from central banks cast a cloud over demand. A rising dollar also makes the commodity more expensive for some customers.

Brent oil futures were down 1.6% $72.95 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 1.8%, at $68.26.

The U.S. dollar index rose 0.59% to 102.99 and was ontrack for a weekly gain, reversing three straight weeks oflosses as it drew support from growing risk aversion in markets.

The pound, still digesting news of Thursday’s bigger-than-expected 50 basis points rate hike from the Bank of England, fell 0.31% to $1.2709 and was on track for a weekly loss of nearly 1%, snapping three straight weeks of gains. Elsewhere, the euro fell 0.8% to $1.0869.

In Asian markets, the MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.2% and is down more than 4% for the week, its worst in nine months.

Japan’s Nikkei fell 1.45% and was set to snap a 10-week winning streak with a 2.7% weekly drop.

In bonds, U.S. Treasuries were steady after being sold when Fed Chair Jerome Powell reiterated on Thursday that further rate hikes are likely. Two-year Treasury yields were slightly weaker at 4.75% and 10-year yields at 3.73%.

Gold was trading at $1,917 an ounce, up 0.2% on the day.

Wheat futures took a breather after surging 20% in two weeks as traders braced for Russia to quit a deal guaranteeing the safe passage of grain over the Black Sea.

Related Topics:Crude Oil Featured Gold Nikkei

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Oak Valley Community Bank Named One of Central Valley’s Best Places to Work

Published

8 hours ago

April 27, 2024

OAKDALE, Calif., April 26, 2024 (GLOBE NEWSWIRE) — Oak Valley Community Bank, a wholly-owned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY) is pleased to announce that it was named by Best Companies Group as one of 2024 Best Places to Work: Central Valley. At the same time, OVCB was recognized by Opportunity Stanislaus for Growing the Economy by increasing their workforce by 10% or more throughout 2023.

We are honored to be acknowledged for our growth and named one of the Best Places to Work in the Central Valley. This recognition is a testament to our commitment to fostering a positive and supportive workplace environment and excellence in all that we do. Our success is built on our service culture, which is embraced by all members of our team. Our exceptional service is what distinguishes us. It’s not just about meeting expectations; it’s about exceeding them in ways that build lasting trust and loyalty. By delivering on this promise consistently, we create our own brand ambassadors “ who speak highly of the bank and refer colleagues and friends. We would like to take this opportunity to recognize our team. We are grateful for their loyalty and commitment to our customers, our communities, and each other, stated Chris Courtney, CEO.

Best Places to Work: Central Valley is a survey and recognition program dedicated to celebrating those employers locally who excel at creating quality jobs and environments where employees are happy to work. As a research-driven program from Best Companies Group, Best Places to Work examines a company’s practices, programs, and benefits and surveys employees for their perspective. All companies that participated in the 2024 Best Places to Work: Central Valley program receive an in-depth evaluation identifying strengths and weaknesses according to their employees. In turn, this report can be used in developing or enhancing employee retention and recruitment programs.

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We are honored to be recognized with this year’s Best Places to Work recipients; Automation Group; O’Dell (NYSE:) Engineering, Inc., Grimbleby Coleman Advisors & Accountants, Haggerty Construction, Inc., ITSolutions-Currie, One Digital, The Wonderful Company, and Community Hospice & Health Services.

Best Places to Work: Central Valley is brought to you by Opportunity Stanislaus. For more information on Best Places to Work: Central Valley visit www.bestplacestoworkcentralvalley.com.

About Opportunity Stanislaus Opportunity Stanislaus is a local economic development organization focused on improving the economic vitality of Stanislaus County. To do so, they help local entrepreneurs start and grow businesses and work to attract innovative companies to the county. For more information visit www.opportunitystanislaus.com.

About Oak Valley Community Bank OVCB offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop. For more information visit www.ovcb.com.