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Business and Market Discussion

2022-01-26

Business and Market Discussion

2022-01-26
US stocks made another stunning comeback on Tuesday for the second day in a row as the major indices pared big losses late in the trading session. The Dow was down over 800 points in the morning session before recovering to close 67 points lower at 34,298. The S&P 500 fought its way back from a 2.8% loss to close down 1.2% at 4,356. The Nasdaq Composite Index, which was down 3.2% in the morning session, ended the day with losses of 2.3% at 13,539.

The International Monetary Fund has cut its 2022 global growth forecast from 5.9% in 2021 to 4.4% in 2022, with this year’s figure being half a percentage point lower than previously estimated. The revised outlook was led by markdowns in the world’s two largest economies. The US is expected to grow 4.0% in 2022, 1.2 percentage points lower than previously forecast, as the Fed withdraws its monetary stimulus. China is predicted to grow 4.8% this year, down 0.8 percentage points from earlier estimates because of disruptions caused by its zero-Covid policy, as well as “projected financial stress” among its property developers.

China’s Commerce Ministry said on Tuesday that the foreign trade situation will be grim in 2022, and warned of “unprecedented” difficulties ahead this year. Li Xingqian, head of the MOFCOM’s foreign trade department, said the faltering global recovery, due to Covid outbreaks, supply chain disruptions and rising inflation, will affect foreign trade. He warned some countries are cutting economic stimulus too fast which will lead to demand contractions and hit exports from Chinese industry in 2022.

On Wednesday’s Money Talk we’re joined by Alicia Garcia Herrero, Chief Economist for Asia Pacific at Natixis, Carlos Casanova, Senior Asia Economist at UBP and RTHK’s International Economics Correspondent, Barry Wood.

Money Talk

A fast moving and topical business and finance show bringing you breaking business and economic news and financial market updates. Presented by former CEO and investment bank global trading head Peter Lewis, with over 30 years' industry experience. Join Peter and his expert guests for analysis and discussion on the day's top business stories live every weekday morning 8 to 8:30 a.m. on RTHK Radio 3. We have a podcast to download after the show and you can also listen through the RTHK Radio 3 website live or later in the day. We welcome your questions, comments and feedback to read out in the show. You can email us at moneytalk@rthk.hk, post on our Facebook page "Money Talk on RTHK Radio 3 " or find us on twitter "MoneytalkRadio3") .
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