Buckle up bulls as the bears are in the driving seat and it promises to be a wild ride down. Markets from Wall Street to Dalal Street feel the pain as central bankers globally take up the war against inflation and it may be a battle that only the market loses. There is a new phrase in town that is haunting traders 'GST' - Global Synchronished Tightening, making more costly and pushing a funding freeze across the glove

United States: Where it all started,reading of a 40-year high inflation has opened the doors to multiple 'big hikes'by the Fed who is not confident the rate hikes will be enough to bring inflation down. 
United Kingdown: Bank of England hiked rates for the fifth time in a row as inflation soars. 
Swiss National Bank unexpectedly increased interest rates for the first time since 2007
ECB starts taking some measures, but rate hike pushed to end July. 
Hong Kong raised rates on Thursday following Fed third such hike this year
South Korea cuts growth outlook to the slowest in 3 years, cuts corporate tax to help industry 


Explained: Falling global markets and what is the new 'GST' fear

Explained: Falling global markets and what is the new 'GST' fear for traders worldwide

Central banks globally are vowing to fight inflation with higher rates

Buckle up bulls as the bears are in the driving seat and it promises to be a wild ride down. Markets from Wall Street to Dalal Street feel the pain as central bankers globally take up the war against inflation and it may be a battle that only the market loses. There is a new phrase in town that is haunting traders 'GST' - Global Synchronished Tightening, making more costly and pushing a funding freeze across the globe.&nbsp;
Also read/watch| <a title="US markets collapse, Dow sinks 700 points to year low" href="https://www.editorji.com/business-news/markets/markets-live-updates-us-markets-collapse-dow-sinks-700-points-to-year-low-1655425366697">US markets collapse, Dow sinks 700 points to year low</a>
<ul>
<li>United States: Where it all started, reading of 40-year high inflation has opened the doors to multiple 'big hikes' by the Fed who is not confident the rate hikes will be enough to bring inflation down.&nbsp;</li>
<li>United Kingdom: Bank of England hiked rates for the fifth time in a row as inflation soars.&nbsp;</li>
<li>Swiss National Bank unexpectedly increased interest rates for the first time since 2007</li>
<li>ECB starts taking some measures, but the rate hike pushed to the end of July.&nbsp;</li>
<li>Hong Kong raised rates on Thursday following Fed's third such hike this year</li>
<li>South Korea cuts growth outlook to the slowest in 3 years, cuts corporate tax to help industry&nbsp;</li>
</ul>

The update from the markets is not a good one! The US markets collapsed in overnight trade falling to a year low as risk or recession and rates hit sentiment. The Dow broke below 30,000 for the first time since Jan. 4.&nbsp;The Dow dropped 2.42%, S&amp;P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%&nbsp; and touched its lowest level since September 2020.US markets have suffered steep losses this week. The S&amp;P 500 is down 6%, Nasdaq has fallen 6.1%. US markets are on pace for 11th losing week of the last 12.

Markets live updates: US markets collapse, Dow sinks 700 points to year low


The Dow dropped 2.42%, S&P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%  and touched its lowest level since September 2020.

Buckle up! The bears are taking the street for a wild ride

Fears of recession grip global markets as central bankers vow to fight inflation

The update from the markets is not a good one! The US markets collapsed in overnight trade falling to a year low as risk or recession and rates hit sentiment. The Dow broke below 30,000 for the first time since Jan. 4.&nbsp; The Dow dropped 2.42%, S&amp;P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%&nbsp; and touched its lowest level since September 2020. US markets have suffered steep losses this week. The S&amp;P 500 is down 6%, Nasdaq has fallen 6.1%. US markets are on pace for 11th losing week of the last 12.

Federal Reserve Chairman answered tough questions as he laid out the roadmap for hikes over the next year. Jerome Powell walked back from his May meeting statement where he ruled out a 75 bps hike to make room for many more hikes as inflation continues to be stubborn with no sign of abating. The Fed Chief acknowledged that with rate hikes come the risks of higher unemployment and pain for the common man. Here is an edited transcript of the press conference-: Coming out of our last meeting in May, there was a broad sense on the Committee that a 1/2 percentage point increase in the target range should be considered at this meeting if economic and financial conditions evolved in line with expectations. We also stated that we were highly attentive to inflation risks and that we would be nimble in responding to incoming data and the evolving outlook. Since then, inflation has again surprised to the upside, some indicators of inflation expectations have risen, and projections for inflation this year have been revised up notably. In response to these developments, the Committee decided that a larger  increase in the target range was warranted at today’s meeting. This continues our approach of expeditiously moving our policy rate up to more normal levels. And it will help ensure that longer-term inflation expectations remain well anchored at 2 percentOverall economic activity edged down in the first quarter, as unusually sharp swings in inventories and net exports more than offset continued strong underlying demand. The median projection in the SEP for the unemployment rate rises somewhat over the next few years, moving from 3.7 percent at the end of this year to 4.1 percent in 2024, levels that are noticeably above the March projections.Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2 percent. We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy. Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common. From the perspective of today, either a 50 or 75 basis point increase seems most likely at our next meeting. We will, however, make our decisions meeting by meeting, and we will continue to communicate our thinking as clearly as we can. Our overarching focus is using our tools to bring inflation back down to our 2 percent goal and to keep longer-term inflation expectations well anchored

Watch Fed Chief Powell get quizzed! Can rate hikes really reduce inflation? 

Powell to reporters " Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common."

'Clearly, today&rsquo;s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common.'

Federal Reserve Chairman answered tough questions as he laid out the roadmap for hikes over the next year. Jerome Powell walked back from his May meeting statement where he ruled out a 75 bps hike to make room for many more hikes as inflation continues to be stubborn with no sign of abating. The Fed Chief acknowledged that with rate hikes come the risks of higher unemployment and pain for the common man. Here is an edited transcript of the press conference-:&nbsp; Coming out of our last meeting in May, there was a broad sense on the Committee that a 1/2 percentage point increase in the target range should be considered at this meeting if economic and financial conditions evolved in line with expectations. We also stated that we were highly attentive to inflation risks and that we would be nimble in responding to incoming data and the evolving outlook. Since then, inflation has again surprised to the upside, some indicators of inflation expectations have risen, and projections for inflation this year have been revised up notably. In response to these developments, the Committee decided that a larger &nbsp;increase in the target range was warranted at today&rsquo;s meeting. This continues our approach of expeditiously moving our policy rate up to more normal levels. And it will help ensure that longer-term inflation expectations remain well anchored at 2 percent Overall economic activity edged down in the first quarter, as unusually sharp swings in inventories and net exports more than offset continued strong underlying demand. The median projection in the SEP for the unemployment rate rises somewhat over the next few years, moving from 3.7 percent at the end of this year to 4.1 percent in 2024, levels that are noticeably above the March projections. Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2 percent. We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy. Clearly, today&rsquo;s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common. From the perspective of today, either a 50 or 75 basis point increase seems most likely at our next meeting. We will, however, make our decisions meeting by meeting, and we will continue to communicate our thinking as clearly as we can. Our overarching focus is using our tools to bring inflation back down to our 2 percent goal and to keep longer-term inflation expectations well anchored

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes.The Dow Jones Industrial Average jumped 303.70 points, or 1%, to close at 30,668.53. The S&amp;P 500 rose 1.46% to 3,789.99 while, the Nasdaq Composite gained 2.5% to end the day at 11,099.15.

What the Fed! US Markets rebound despite massive rate hike weak growth outlook

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes.

US markets snap 5 day losing streak after Fed rate hike

Super-sized interest-rate hikes and a weak growth outlook did not deter the bulls on Wall Street that helps the US markets rebound from a 5-day losing streak even as the Fed signalled more 75 bps hikes. The Dow Jones Industrial Average jumped 303.70 points, or 1%, to close at 30,668.53. The S&amp;P 500 rose 1.46% to 3,789.99 while, the Nasdaq Composite gained 2.5% to end the day at 11,099.15.

The Federal Reserve concludes a two-day rate-setting meeting on Wednesday and the markets are bracing for a big hike jolt. Most Wall Street firms are expecting a 75 bps hike, a quantum not done by the Fed since 1994.&nbsp;The Fed rate hike is a game-changer as just a month ago Chairman Powell had almost ruled out the possibility of a 75 bps move but fast-moving&nbsp;inflation has changed the equation. The United States is facing stubbornly high inflation currently clocking in at a 40 year high.&nbsp;Data showed the consumer price index increased 8.6% in the 12 months through May, the most in 40 years. The Fed has a goal of 2% inflation.&nbsp;The worry of not one but multiple big rate hikes to counter this cost of living crisis&nbsp;has pushed the US markets into the clutches of bear territory with the broader S&amp;P500 falling over 20% for the year and the tech index Nasdaq&nbsp;shaving off over 30% for the year so far.&nbsp;

Fed decision day: Here is what to expect from the US central bank

Markets now pricing in a 75 bps hike for the Fed, the big question is how many more?

Fed decision day: Here is what to expect from the Federal Reserve Chair Powell

Markets now pricing in a 75 bps hike, the big question is how many more?

The Federal Reserve concludes a two-day rate-setting meeting on Wednesday and the markets are bracing for a big hike jolt. Most Wall Street firms are expecting a 75 bps hike, a quantum not done by the Fed since 1994.&nbsp; The Fed rate hike is a game-changer as just a month ago Chairman Powell had almost ruled out the possibility of a 75 bps move but fast-moving&nbsp;inflation has changed the equation. The United States is facing stubbornly high inflation currently clocking in at a 40 year high.&nbsp; Data showed the consumer price index increased 8.6% in the 12 months through May, the most in 40 years. The Fed has a goal of 2% inflation.&nbsp; The worry of not one but multiple big rate hikes to counter this cost of living crisis&nbsp;has pushed the US markets into the clutches of bear territory with the broader S&amp;P500 falling over 20% for the year and the tech index Nasdaq&nbsp;shaving off over 30% for the year so far.&nbsp;

Markets extended their sell-off in overnight trade. US markets officially entered bear market territory as the S&amp;P 500 tumbles over 3.6%.,down 22% from its highs.&nbsp;At one point during the trading day, every single stock in the S&amp;P 500 was lower. The tech-heavy&nbsp;Nasdaq Composite tumbled 4.68% to close at 10,809.23, bringing its losses for this sell-off to more than 33%.More brokerages now expect a 75 bps hike from the Federal Reserve that starts it's two day meet on Tuesday.&nbsp;Traders now see about 200 basis points of tightening by the Fed&rsquo;s September decision. For the first time some pockets of Wall Street are even betting on a 100 bps hike from the US central bank.Bloomberg&nbsp;reports that the bond markets&nbsp;are also flashing fears that this aggressive tightening will weigh on economic growth down the line. On Monday, a closely-watched part of the US yield curve&nbsp;inverted&nbsp;on growing concern that more aggressive rate

Market carnage: US markets in a free fall; S&P 500 tumbles nearly 4% to new low for the year

US markets officially entered bear market territory, Tech heavy Nasdaq down 33% for the year so far. 

Market carnage: US markets in a free fall as Fed begins 2-day meet

S&amp;P 500 tumbles nearly 4% to new low for the year

Markets extended their sell-off in overnight trade. US markets officially entered bear market territory as the S&amp;P 500 tumbles over 3.6%.,down 22% from its highs.&nbsp;At one point during the trading day, every single stock in the S&amp;P 500 was lower. The tech-heavy&nbsp;Nasdaq Composite tumbled 4.68% to close at 10,809.23, bringing its losses for this sell-off to more than 33%. More brokerages now expect a 75 bps hike from the Federal Reserve that starts it's two day meet on Tuesday.&nbsp;Traders now see about 200 basis points of tightening by the Fed&rsquo;s September decision. For the first time some pockets of Wall Street are even betting on a 100 bps hike from the US central bank. Bloomberg&nbsp;reports that the bond markets&nbsp;are also flashing fears that this aggressive tightening will weigh on economic growth down the line. On Monday, a closely-watched part of the US yield curve&nbsp;inverted&nbsp;on growing concern that more aggressive rate

Rupee hit a new record low as consistent selling in the stock market kept dollar outflow pressure going. Meanwhile, a gaining greenback added downside to currencies across the globe with the Yen sliding to 28 year low.The rupee dropped to 78/$ for the first time ever but this may not be end of the pain. Bloomberg reports that top forecasters see The currency falling to between 79 to 81 per dollar over the next few months. The rupee declined about 1.6% in May, the biggest drop among emerging Asian currencies as FIIs continued to pull out money. For the year so far foreign investors have withdrawn $24 billion from Indian stock markets. Also weighing on the currency is a widening trade deficit and pressure on the fuel import bill. 

Currency collapse: Rupee sinks to record low, Yen slumps to 28-year low

The rupee dropped to 78/$ for the first time ever but this may not be the end of the pain. Forecasters see the rupee dropping to 80/$ soon. 

FIIs have withdrawn over $24 billion from Indian stock markets this year

Rupee hit a new record low as consistent selling in the stock market kept dollar outflow pressure going. Meanwhile, a gaining greenback added downside to currencies across the globe with the Yen sliding to 28 year low. The rupee dropped to 78/$ for the first time ever but this may not be end of the pain. Bloomberg&nbsp;reports that top forecasters see&nbsp;the currency falling to between 79 to 81 per dollar over the next few months.&nbsp;
Also read/watch|&nbsp;Explained: <a title="Recessions risks and why should we care about an inverted yield curve" href="https://www.editorji.com/business-news/markets/explained-recessions-risks-and-why-should-care-about-an-inverted-yield-curve-1655109834472">Recessions risks and why should we care about an inverted yield curve</a> The rupee declined about 1.6% in May, the biggest drop among emerging Asian currencies as FIIs continued to pull out money. For the year so far foreign investors have withdrawn $24 billion from Indian stock markets. Also weighing on the currency is a widening trade deficit and pressure on the fuel import bill.&nbsp;

Economists have been citing the inverted yield curve a lot these days as they predict a possible recession. But what is inverted yield and how does it predict a recession?
First, we will understand what is yield.
A yield is a return that a bond investor gets. Bond and bond yields are inversely proportional to each other, meaning that when the demand for a specific bond rises, its yield drops.
Basically, high demand means low yields; low demand means high yields.
In a normal case, yields on longer-term maturity bonds are higher than that of shorter-term bonds.
An inverted yield curve is a situation when the yields on short-term debt become more than the long-term debt.
In an easy language, this reflects a shift in demand from short-term credit to long-term credit. This happens when the big money sees a riskier condition in the near term. Hence, reflecting a recession or an economic downturn in the upcoming months.

Explained: Recessions risks and why should care about an inverted yield curve

Economists have been citing the inverted yield curve a lot these days as they predict a possible recession.



Explained: What is an inverted yield curve and how does it signal a recession

Bond and bond yields are inversely proportional to each other, meaning that when the demand for a specific bond rises, its yield drops.

Economists have been citing the&nbsp;inverted&nbsp;yield curve a lot these days as they predict a possible recession. But what is inverted yield and how does it predict a recession?
First, we will understand what is yield.
A yield is a return that a bond investor&nbsp;gets. Bond and bond yields are inversely proportional to each other, meaning that when the demand for a specific bond rises, its yield drops.
Basically, high demand means low yields; low demand means high yields.
In a normal case, yields on longer-term maturity bonds are higher than that of shorter-term bonds.
An inverted yield curve is a situation when the yields on short-term debt become more than the long-term debt.
In an easy language, this reflects a shift in demand from short-term credit to long-term credit. This happens when the big money sees riskier conditions in the near term. Hence, reflecting a recession or an economic downturn in the upcoming months. This conversation comes into the spotlight as in the US the 2-year rate jumped more than 10 basis points to 3.1535%, reaching its highest level since 2007 inching towards the benchmark 10-year Treasury yield at about 3.1762. Just ahead of the Fed meet the yields are starting to signal at the economic winter is just around the corner this summer.&nbsp;

As stock prices from Wall Street to Dalal Street see a meltdown, we look at the factors at play that are making traders jittery: Prices: Higher inflation rate has sparked a fresh round of fears in traders that the Fed will hike rates more than what equities have priced in. Stock markets are now looking at 75 bps hike from the US central bank that is facing 40 year high inflation. Cost of living crisis is causing central banks from ECB to RBI to fast change course of policy making money more expensive as risks of recession rises. Putin: Ever since the Kremlin decided to attack Ukraine on the 24 February 2022, the war has created multiple supply shocks from fuel to food. Crude prices now hovering around the $120/bbl mark hurting importing nations across Asia and EU. Pandemic: The covid outbreak seems to be never-ending with China starting to re-impose Covid-19 restrictions just weeks after major easing in key cities, raising concern the country may once again employ strict lockdowns to control its outbreak. Lockdowns have already roiled global supply chains and impacted the operations of global giants from Sony Group Corp. to Tesla Inc. 

Markets crash: Prices, Putin and Pandemic - the 3 pronged pain for stocks

Federal Reserve meets June 14-15 to decide on rates and present economic outlook

As stock prices from Wall Street to Dalal&nbsp;Street see a meltdown, we look at the factors at play that are making traders jittery:&nbsp; Prices: Higher inflation rate has sparked a fresh round of fears in traders that the Fed will hike rates more than what equities have priced in. Stock markets are now looking at a 75 bps hike from the US central bank that is facing 40-year high inflation. Cost of living crisis is causing central banks from ECB to RBI&nbsp;to fast change course of policy making money more expensive as risks of recession rises.&nbsp;
Also read/watch| <a title="Crypto Crash: Bitcoin prices collapse below $25,000; fall over 9% to 18-month low" href="https://www.editorji.com/business-news/crypto-crash-bitcoin-prices-collapse-below-25-000-fall-over-9-to-18-month-low-1655091654981">Crypto Crash: Bitcoin prices collapse below $25,000; fall over 9% to 18-month low</a> Putin: Ever since the Kremlin decided to attack Ukraine on the&nbsp;24 February 2022, the war has created multiple supply shocks from fuel to food. Crude prices now hovering around the $120/bbl mark hurting importing nations across Asia and EU.&nbsp; Pandemic: The covid&nbsp;outbreak seems to be never-ending with&nbsp;China starting to re-impose Covid-19 restrictions just weeks after major easing in key cities, raising concern that the country may once again employ strict lockdowns to control its outbreak. Lockdowns have already roiled global supply chains and impacted the operations of global giants from Sony Group Corp. to Tesla Inc.&nbsp;

Recession and rates are on top of the agenda as the bulls take a backseat ahead of the Federal Reserve meeting that could now push rates higher at a faster pace. Stock markets from New York to Tokyo headed lower as US inflation surged to a 40 year high and traders raised bets that US central bank will raise rates maybe by 75 bps this week. Noted economists across the US have been highlighting the risk of a recession for the world's largest economy. Markets are fearful of a recession, so stock investors are watching the bond market, which is sending fresh signals that the economy could be weakening.

Monday blues for markets, Fed fears rule; Sentiment Explained

Federal Reserve meet this week sparks global sell-off

The US central bank faces 40 year high inflation battle

Recession and rates are on top of the agenda as the bulls take a backseat ahead of the Federal Reserve meeting that could now push rates higher at a faster pace.&nbsp; Stock markets from New York to Tokyo headed lower as US inflation surged to a 40 year high and traders raised bets that US central bank will raise rates maybe by 75 bps this week.&nbsp; Noted economists across the US have been highlighting the risk of a recession for the world's largest economy.&nbsp;Markets are fearful of a recession, so stock investors are watching the bond market, which is sending fresh signals that the economy could be weakening.

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Melting portfolios across markets as equities, currency and crypto&nbsp;saw a collapse in Monday's trade. Sensex&nbsp;dropped over 1400 points while Nifty lost 16,000 conclusively as the bulls took a back seat.&nbsp;Traders raised bets that the Fed will make money more expensive by raising rates by 75 bps as it concludes its been on June 14-15. The fear gauge on Dalal&nbsp;Street or the VIX&nbsp;soared 10% as midcaps and smallcaps also hurled lower by over 2%.Banks and metals were hit the hardest with newly listed LIC&nbsp;tumbling below the Rs 700 mark.&nbsp;

Nifty down 400 points and Sensex sinks over 1400 points

Melting portfolios across markets as equities, currency and crypto saw a collapse in Monday's trade.

Monday meltdown for markets

US inflation soared to a 40 year high&nbsp;

Melting portfolios across markets as equities, currency and crypto&nbsp;saw a collapse in Monday's trade. Sensex&nbsp;dropped over 1400 points while Nifty lost 16,000 conclusively as the bulls took a back seat.&nbsp; Traders raised bets that the Fed will make money more expensive by raising rates by 75 bps as it concludes its been on June 14-15. The fear gauge on Dalal&nbsp;Street or the VIX&nbsp;soared 10% as midcaps and smallcaps also hurled lower by over 2%. Banks and metals were hit the hardest with newly listed LIC&nbsp;tumbling below the Rs 700 mark.&nbsp;

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&amp;P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%. Weak economic data made the market reverse all early gains as bets rise on aggressive hikes from the Fed. The consumer confidence index fell to a reading of 98.7, down from 103.2 in May.Beyond equities; oil pushed past $112 a barrel on supply risks and Bitcoin striggled around $20,000 as sentiment continues to be sour around digital tokens.&nbsp;

Market latest news: US markets see sharp cuts, bear market loses its bounce

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%.

US markets see sharp cuts, bear market loses its bounce

<div class="abstract-item-text__d2d4dde8">Markets doubtful if the the global economy can face bigger rate hikes</div>

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&amp;P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%. Weak economic data made the market reverse all early gains as bets rise on aggressive hikes from the Fed. The consumer confidence index fell to a reading of 98.7, down from 103.2 in May. Beyond equities; oil pushed past $112 a barrel on supply risks and Bitcoin striggled around $20,000 as sentiment continues to be sour around digital tokens.&nbsp;

Top 5 'fat-finger' trades that rocked global marketsJapan's Jitters with $711 Billion Blunder2014: In what could have been one of most expensive fat-finger trades ever. Someone placed more than 40 erroneous orders in some of Asia’s largest corporations, representing hundreds of billions of dollars of business. Orders included a request for 1.9 billion shares in Toyota, around 57 per cent of its total share capital. Though no real losses were accouted for as the trades were cancelled - the total value of the cancelled trade were greater than the economy of Sweden. Samsung Sec's $140 Billion Slip Up 2018: An employee at one of South Korea's largest brokerages, tried to pay employees 1,000 won ($1.25) per share in dividends under a company compensation plan, but instead gave them 1,000 company shares instead, worth on paper about 112.6 trillion won ($140 billion), more than 30 times the company's market value.Things got worse when 16 employees sold the stock, spurring a rout of as much as 12 per cent in the space of minutes on April 6, the biggest decline since the global financial crisis. Deutsche's $6 Billion Debacle2019: The German bank accidentally transferred $6bn to a hedge fund client in 2015 after a junior trader on its foreign exchange desk mistakenly put through the trade. Even though the trade was reversed it left a unbilled damaged to the bank's goodwill. 
Mizuho’s Mess Up Cost Millions2005: The brokerage arm of Mizuho accidentally offered to sell 610,000 shares of recruitment company J-Com at one yen, instead of the intended one share at 610,000 yen. Mizuho was forced to pay 912,000 yen a share to investors who bought shares of J-Com, suffering a loss of $335 million, as part of an emergency settlement plan
Gold's No Haven2017: Gold traders were rattled in Juneby a huge spike in volume in New York futures when trading jumped to 1.8 million ounces of gold in just a minute, an amount bigger than the gold reserves of Finland. Only possible explanation: a mistaken trade of 18,149 lots of a futures contract, about 100 times the size of a typical trade of 18,149 ounces. 


Top 5 'fat-finger' trades that rocked global markets 

A fat-finger trade is an erroneous&nbsp;trade that happens due to pressing a wrong key on the keyboard or a mouse misclick.

Keto, GM or anything diet will not reduce the losses that arise from having a fat finger! Erroneous&nbsp;trades or infamously labelled fat-finger trades have over the decades rocked financial markets and reminded traders - to err is human!&nbsp;
Japan's Jitters with $711 Billion Blunder 2014: In what could have been one of the most expensive fat-finger trades ever. Someone placed more than 40 erroneous orders&nbsp;in some of Asia&rsquo;s largest corporations, representing hundreds of billions of dollars of business. Orders included a request for 1.9 billion shares in Toyota, around 57 per cent of its total share capital. Though no real losses were accounted for as the trades were cancelled - the total value of the cancelled trade was greater than the economy of Sweden.&nbsp;
Also read/watch | <a href="https://www.editorji.com/business-news/this-edtech-startup-shuts-its-operation-fires-all-the-employees-1654155999177" target="_blank">This EdTech startup shuts its operation, fires all the employees</a>
Samsung&nbsp;Sec's&nbsp;$140 Billion Slip Up&nbsp; 2018: An employee at one of South Korea's largest brokerages tried to pay employees 1,000 won ($1.25) per share in dividends under a company compensation plan, but instead gave them 1,000 company shares instead, worth on paper about 112.6 trillion won ($140 billion), more than 30 times the company's market value. Things got worse when 16 employees sold the stock, spurring a rout of as much as 12 per cent in the space of minutes on April 6, the biggest decline since the global financial crisis.&nbsp;
Also read/watch | <a href="https://www.editorji.com/business-news/rbi-june-monetary-policy-repo-rate-to-be-hiked-all-you-need-to-know-1654154034702" target="_blank">RBI June Monetary Policy: Repo rate to be hiked? All you need to know</a>
Deutsche's&nbsp;$6 Billion Debacle 2019: The German bank accidentally transferred $6bn to a hedge fund client in 2015 after a junior trader on its foreign exchange desk mistakenly put through the trade. Even though the trade was reversed it left&nbsp;unbilled&nbsp;damage to the bank's goodwill.
Mizuho&rsquo;s Mess Up Cost Millions 2005: The brokerage arm of Mizuho accidentally offered to sell 610,000 shares of recruitment company J-Com at one yen, instead of the intended one share at 610,000 yen.&nbsp;Mizuho was forced to pay 912,000 yen a share to investors who bought shares of J-Com, suffering a loss of $335 million, as part of an emergency settlement plan.
Also read/watch | <a href="https://www.editorji.com/business-news/markets/explained-what-is-a-fat-finger-trade-and-how-it-can-make-you-lose-crores-1654228204966" target="_blank">Explained: What is a fat finger trade and how it can make you lose crores!</a>
Gold's No Haven 2017: Gold traders have rattled in June by&nbsp;a huge spike in volume in New York futures when trading jumped to 1.8 million ounces of gold in just a minute, an amount bigger than the gold reserves of Finland. Only&nbsp;possible explanation: a mistaken trade of 18,149 lots of a futures contract, about 100 times the size of a typical trade of 18,149 ounces.

The push of an enter key vs a delete button, or a mistaken forward to the wrong number. A fat finger trader is precisely that; the execution of a wrongly punched command. But in the case of a 'fat finger trade' it could cost the trader a hefty sum when a trade is executed mistakenly by the wrong press of a button.If it is a single retail trader who faces a 'fat finger' error the imapct is not usually dire. But in today's day of  algo trades a fat finger trade can set a chain-reaction of events in place, similar to the domino effect. In some cases, the downward spiral can be catastrophic, such as during the stock market’s flash crash in 2010. And it is not as simple as 'oops' as even the biggest trader may not have the option of reversing the call on their own. It usually requires intervention at the exchange levels and most often requires the regulators nod as well. So next time think before you hit go! 

Explained: What is a fat finger trade and how it can make you lose crores! 

Fat-finger trades have a long and inglorious history

The push of an enter key&nbsp;vs a delete button, or a mistaken forward to the wrong number.&nbsp;A fat finger trader is precisely that; the execution of a wrongly punched command. But in the case of a 'fat finger trade,' it could cost the trader a hefty sum when a&nbsp;trade is executed mistakenly by the wrong press of a button.
Also read/watch| <a title="India's biggest 'fat-finger' trade; broking house loses Rs 250 crore" href="https://www.editorji.com/business-news/india-s-biggest-fat-finger-trade-broking-house-lose-rs-250-crore-1654224975360">India's biggest 'fat-finger' trade; broking house loses Rs 250 crore</a> If it is a single retail trader who faces a 'fat finger' error the impact is not usually dire. But in today's day of&nbsp;algo&nbsp;trades, a fat&nbsp;finger trade can set a chain-reaction of events in place, similar to the domino effect. In some cases, the downward spiral can be catastrophic, such as during the stock market&rsquo;s flash crash in 2010.&nbsp; And it is not as simple as 'oops' as even the biggest trader may not have the option of reversing the call on their own. It usually requires intervention at the exchange&nbsp;levels and most often requires the regulator's nod as well. So next time think before you hit go!&nbsp;

Beyond inflation and growth, the markets were buzzing with the term 'SDF' as the Reserve Bank of India began it's process of post pandemic normalisation but did not tinker with policy rates. In a bid to manage liquidity in the market the central bank introduced Standing Deposit Facility or SDF at 3.75 per cent. This is the rate at which banks can park their excessive funds with the RBI and other side is MSF (@ 4.25%)where they can borrow an additional amount of overnight money from the central bank. 
At both ends of liquidity corridor, the standing facility at the base will absorb liquidity while the one at the other end will inject liquidity, governor Shaktikanta Das said.Generally, RBI uses reverse repo to absorb liquidity. In reverse repo, RBI takes liquidity from the banks and gives reverse repo rate of interest to the banks and keeps government securities (GSec, SDL, Tbills) as collateral. The SDF replaces the need for collateral and makes it a more smooth and efficient process. The impact of an SDF floor being fixed at 3.75% indicates further hikes in fixed deposit and savings rate as effectively the savings rate for banks is also now higher by 40 bps vs the previous benchmark of the reverse repo. 

SDF Explained: It matters for your savings and FD rates

In a bid to manage liquidity in the market the central bank introduced Standing Deposit Facility or SDF at 3.75 per cent. This is the rate at which banks can park their excessive funds with the RBI and other side is MSF (@ 4.25%)where they can borrow an additional amount of overnight money from the central bank. 

SDF Explained: RBI starts 'normalising' rates 

This concept was first recommended by the Urjit Patel committee&nbsp;report in 2014

Beyond inflation and growth, the markets were buzzing with the term 'SDF' as the Reserve Bank of India began it's process of post pandemic normalisation but did not tinker with policy rates.&nbsp; In a bid to manage liquidity in the market the central bank introduced&nbsp;Standing Deposit Facility or SDF at 3.75 per cent. This is the rate at which banks can park their excessive funds with the RBI&nbsp;and other side is MSF&nbsp;(@ 4.25%)where they can borrow an additional amount of overnight money from the central bank.&nbsp;
Also read/watch |&nbsp;<a href="https://www.editorji.com/business-news/what-is-a-non-dom-status-that-has-been-troubling-rishi-sunak-1649668644279" target="_blank">What is a non-dom status that has been troubling Rishi Sunak</a>
At both ends of liquidity corridor, the standing facility at the base will absorb liquidity while the one at the other end will inject liquidity, governor Shaktikanta Das said. Generally, RBI uses reverse repo to absorb liquidity. In reverse repo, RBI takes liquidity from the banks and gives reverse repo rate of interest to the banks and keeps government securities (GSec, SDL, Tbills) as collateral. The SDF&nbsp;replaces the need for collateral and makes it a more smooth and efficient&nbsp;process.&nbsp;
Also read/watch |&nbsp;<a href="https://www.editorji.com/business-news/cryptocurrency/crypto-heist-top-5-blockchain-thefts-of-all-time-1648633725093" target="_blank">Crypto heist: top 5 blockchain thefts of all time</a> The impact of an SDF&nbsp;floor being fixed at 3.75% indicates further hikes in fixed deposit and savings rate as effectively the savings rate for banks is also now higher by 40 bps vs the previous benchmark of the reverse repo.&nbsp;

Bull took a break, got their energy back and came back to Wall Street and displayed a strong comeback but the big question remains is...for how long?Dow Jones Industrial Average jumped 641.47 points, or 2.15%,&nbsp; in its best day for the month. The S&amp;P 500 also climbed 2.45% , making it the index&rsquo;s best day in June. The Nasdaq Composite rallied 2.51%.But many are questioning this recovery as short lived or writing it off merely as a 'dead cat bounce'. Here is why there is low conviction, the S&amp;P 500 has popped more than 2% on 10 other occasions since this bear began at the start of January, only to give up that gain and trade lower.Beyond equities, Crude prices steadied at $114/bbl while in Asian markets Yen trades at 24 year low.&nbsp;

Market moves & cues: Trading day ahead 

Bull took a break, got their energy back and came back to Wall Street and displayed a strong comeback but the big question remains is...for how long?

US markets stage a comeback after Monday holiday

Bull took a break, got their energy back and came back to Wall Street and displayed a strong comeback but the big question remains is...for how long? Dow Jones Industrial Average jumped 641.47 points, or 2.15%,&nbsp; in its best day for the month. The S&amp;P 500 also climbed 2.45% , making it the index&rsquo;s best day in June. The Nasdaq Composite rallied 2.51%. But many are questioning this recovery as short lived or writing it off merely as a 'dead cat bounce'. Here is why there is low conviction, the S&amp;P 500 has popped more than 2% on 10 other occasions since this bear began at the start of January, only to give up that gain and trade lower. Beyond equities, Crude prices steadied at $114/bbl while in Asian markets Yen trades at 24 year low.&nbsp;

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