Dow shot up 683, advancers over decliners 7-1 & NAZ gained 182. The MLP index recovered 5+ to the 206s & the REIT index jumped 7+ to the 366s as yields dropped. Junk bond funds rose along with stocks & Treasuries had massive buying, bringing a major decline in yields. Oil jumped 3+ to the high 82s & gold went up 24 to 1696.
AMJ (Alerian MLP index tracking fund)
OPEC+ is meeting this week to decide on production. The group of oil producers will reportedly consider cutting output by more than 1M barrels a day. The meeting will take place on Wed in Vienna. A production cut would reflect the concern that the global economy is slowing fast in the face of rapidly tightening monetary policy. Oil prices have also been affected by the stronger $. A final decision on the size of the cuts won't be made until ministers meet. Brent crude soared above $125 a barrel following Russia's invasion of Ukraine in Feb. It's since dropped to $85, cutting into the profits that members of the coalition have enjoyed.
OPEC+ meeting may consider output cut this week
The British gov has scrapped plans of cutting taxes on the wealthy, a move that prompted turmoil in financial markets & led to record lows for the £. Treasury chief Kwasi Kwarteng said he would no longer pursue plans to eliminate the top 45% rate of income tax paid on earnings above £150K or $167K a year. "We get it, and we have listened," he said, adding that "it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country." The reversal comes after a number of lawmakers from the governing Conservative Party turned on gov tax plans revealed 10 days ago & just hours after the Conservatives released advance extracts of a speech Kwarteng is scheduled to deliver later today, when he was expected to say, "We must stay the course. I am confident our plan is the right one." Prime Minister Liz Truss defended the plans yesterday but admitted she could have "done a better job laying the ground" for the announcements. Truss, who took office last month, promised to reshape Britain's economy & put an end to years of slow growth. But the announcement of a stimulus package on Sep 23 that features £45B ($50B) in tax cuts that would have been funded by gov borrowing, dropped the £ down to a record low against the $.
UK government drops plans for tax cut on wealthy that prompted turmoil on financial markets
Ukrainian President Volodymyr Zelenskyy said yesterday that the success of Ukraine's soldiers is not limited to the recapture of Lyman, a key logistics hub for the occupying Russian forces, in the northeast of the country. He said in his nightly address that more settlements around Kherson have been liberated. Russia's Defense Ministry said it had withdrawn its forces from Lyman on Sat to prevent them from being encircled. Ukraine is continuing its counteroffensive in the northeast of the country as it tries to reclaim more occupied land from Russia, which last Fri announced it was annexing 4 regions in Ukraine, a move branded as illegitimate & farcical by the intl community. The Russian defeat in Lyman in northeast Ukraine & other parts of the Kharkiv region, combined with the Kremlin's failure to conduct a partial military mobilization effectively & fairly "are fundamentally changing the Russian information space," according to analysts at the Institute for the Study of War. "The Russian information space has significantly deviated from the narratives preferred by the Kremlin and the Russian Ministry of Defense that things are generally under control," analysts at the think tank said.Markets rebound after a brutal September
Ukraine's forces gain ground in the south as counteroffensive builds; Russia acknowledges advances
Markets were heavily oversold last month & due for a recovery from bargain hunters. A proposed cut in oil production sent oil prices higher today. But that is based on a gloomy outlook for the world economy. The question for today is how long will today's rally last?
Dow Jones Industrials
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