China's attempts to boost markets and investor confidence have flopped (2 min read) Despite Beijing's efforts to revive Chinese markets, investors continue to sell their holdings, and the overall capital outflows from the country have surged to their highest level since 2015. All the major Chinese equity benchmarks have also reached their lowest in nearly a year. China's growth concerns, including a property crisis and sluggish economic activity, have contributed to this trend. The Fed’s high rates have also made the US treasury an attractive investing alternative.
Bank of England pauses historic rate hikes as UK inflation falls (3 min read) The Bank of England (BoE) has paused its interest rate hike campaign due to the unexpected UK inflation dips in August. This decision was a surprise as most analysts were expecting another hike from the BoE. The key rate remains at 5.25% and this move is seen as a huge relief for households struggling with mortgages as many now believe further hikes are unlikely and rate cuts may come soon due to economic concerns in the UK.
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Business & Stocks
Nvidia's stock feels the full September effect, suffering a $180 billion wipeout (2 min read) Nvidia has seen its stock price drop significantly this month, losing around $180 billion in market value. This decline is partly due to concerns about the Fed keeping rates high and possibly Nvidia’s CEO selling his shares multiple times over the last few weeks. It’s also interesting that this follows a common trend known as the "September effect," where stocks tend to struggle in September. But even with the declines, Nvidia remains one of the top performers this year.
Apple and Goldman were planning stock-trading feature for iPhones (3 min read) Apple and Goldman Sachs were reportedly working on an investment feature that would allow users to buy and sell stocks but shelved the project due to market uncertainties. The idea came in 2020 when users were actively trading stocks during the pandemic. However, concerns arose over potential user losses in the stock market, leading Apple to shift towards launching savings accounts instead. The status of the stock-trading project remains unclear, but if it progresses, then Apple will enter a new market of competition. here.
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Funds & ETFs
New marijuana ETF hits the block amid pot stocks rally (2 min read) Subversive Capital Advisor launched its sixth ETF, Subversive Cannabis ETF (LGLZ), as the sector sparked a rally late last month. Shares of US marijuana companies have soared after a US health agency’s proposal to reclassify it as a lower-risk substance boosted expectations of federal legalization. Cannabis ETFs have jumped more than 25% so far this month as a result. However, LGLZ will focus on the global cannabis sector rather than just the US specifically.
High-Dividend ETFs: Winners Amid Fed's Higher-For-Longer Rate Cues (3 min read) The Fed decided to keep interest rates unchanged and stressed the possibility of keeping rates higher for longer to combat inflation. This has caused concerns, with the stock market dropping on the news. Investors looking for yield amid a prolonged higher-rate environment might consider high-dividend ETFs as they provide solid current income. This article highlighted several high-dividend ETFs that actually saw gains on Wednesday despite the Fed’s cues to keep rates higher.
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