9.46am: Proactive North America headlines:
Gratomic announces progress update on benching program at its Aukam project in Namibia
Rio2 updates on Fenix gold EIA; files appeal
BetterLife Pharma and collaborators to submit key joint research on BETR-001 to publication
Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) inks software license and distribution deal with Pariplay
BANXA Holdings deepens push into US market with new payment solutions and Reno-based team
Infinity Stone Ventures expands its land position in the James Bay lithium district in Quebec
SPC Nickel posts more encouraging drill results from its Lockerby East project in Sudbury, Ontario
Hapbee Technologies launches ‘Routines By’ featuring wellness routines developed and shared by Hapbee users
Mindset Pharma files 16 national patent applications to protect family of novel next-generation psychedelics
PyroGenesis Canada awarded additional projects for magnesium processing
Lavras Gold hits ‘bonanza’ gold grades from first drilling at Zeca Souza target at Lavras do Sul project
Jushi Holdings debuts cannabis-infused chocolates; marks entry into edibles market
GR Silver Mining (TSX-V:GRSL) hails latest drill results, which show resource expansion potential at San Marcial area of Plomosas
Ortho Regenerative Technologies announces name change to ChitogenX
Delta 9 Cannabis completes acquisition of three retail cannabis stores in Manitoba
Alkaline Fuel Cell Power says Belgium subsidiary earns ISO certification
Givex Information Technology launches point of sale system for three hotels in Mexico
Endexx says its Blesswell premium skincare line for men is now available via Amazon.com
Standard Uranium plans to conduct a non-brokered private placement to raise gross proceeds of up to C$3.5M given the current strength of the global uranium sector
9.35am: More equity losses expected
US stocks opened mixed on Wednesday following a Wall Street Journal report that a 75 basis point rate hike by the Federal Reserve later this month is likely.
Just after the open, the Dow Jones Industrial Average had dipped 13 points at 31,132 points.
The S&P 500 was up 3 points at 3,911 points and the Nasdaq Composite had gained 34 points at 11,579 points.
CityIndex and FOREX.com market analyst Fawad Razaqzada said sentiment towards equities, bonds, cryptos, metals, and foreign currencies remained negative.
“Investors appear reluctant to buy anything in this macro environment, where inflation is soaring, global growth is weakening, and central banks are tightening,” he said.
“Also not helping is the fact we are in a bear market, where traders are happy to sell into the rallies than buy the dips. At this stage, there are not many technical or indeed fundamental signs to appease the bulls. So, expect more losses for equity markets.”
6:30am: Fleeting relief?
US stocks were expected to open slightly higher on Wednesday following sharp recent falls as investors ponder the prospect for more interest rate hikes, elevated levels of inflation, and a stronger dollar.
Futures for the Dow Jones Industrial Average were trading flat pre-market, while those for the broader S&P 500 index were up 0.1%, and futures for the tech-laden Nasdaq-100 were 0.2% higher.
The three major US indices fell on Tuesday, US bond yields spiked and the dollar extended its rally, as Americans returned from their Labor Day break, noted Ipek Ozkardeskaya senior analyst at Swissquote Bank.
“The S&P 500 closed a couple of points above the closely watched 3900 mark, the major Fibonacci 61.8% retracement on the summer rally, which, if cleared should point at a deeper bearish trend in the medium run,” she added.
The US Federal Reserve’s recent series of interest rate increases and its determination to fight inflation with more rate hikes have kept investors on edge as they fear that economic activity in the world’s biggest economy will start to waver. While economic data, especially in the labor market, continue to hold up well, many expect headline figures to soften over the coming months.
These factors are putting equities under pressure although each bout of selling is likely to be tempered by a spot of bargain hunting in US markets, especially as investors look to avoid turbulence in global markets.
Ozkardeskaya pointed out that the equity sell-off has deepened as US companies rush to sell bonds before it gets more expensive.
She noted: “Yesterday alone, 19 US companies including big names like Nestle, Walmart, Target and McDonalds issued a large amount of bonds – about $30 to $40 billion – following an almost 60bp point jump in high-grade yields since the beginning of August. That’s the largest amount sold since September last year.”
The demand for bonds pushed the US 2-year Treasuries yield above 3.50%, and the 10-year yield above 3.35% for the first time since mind-June, she added.
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