News

Follow the latest analyses and key economic, financial, and global market news in this section. Our team reviews the most important market events daily and provides comprehensive insights for traders and enthusiasts.

  • JPMorgan blames leveraged ETFs for worsening Wall Street selloff, warns of more to come

    JPMorgan analysts say leveraged exchange-traded funds (ETFs) played a major role in amplifying Friday’s Wall Street selloff, estimating that around $26 billion in ETF-related selling at the close deepened losses triggered by President Donald Trump’s tariff threats against China.

    Reuters cite the JPM note published late Sunday. In summary:

    • JPMorgan’s Americas equity derivatives team said the forced selling from leveraged ETFs left options dealers scrambling to hedge exposures, worsening the late-day slide. The analysts warned that more ETF-driven volatility could follow as such products grow in popularity.

    Leveraged ETFs — which use swaps and options to magnify daily stock moves — have surged in demand this year, with roughly 900 products now on the market, accounting for a third of new ETF launches but just 1% of the industry’s $12 trillion in assets, according to StockTwits data.

    —

    I have to admit this one has me wondering. Its not really news that managers of leveraged products would have had to chase the price lower, just as they have to chase the price higher the other way.

    The JPMorgan report adds to concerns that rapid growth in leveraged ETFs could amplify market swings. Rising demand for 2x and 3x single-stock products may heighten intraday volatility, especially if macro shocks, such as new tariffs, trigger further forced hedging by dealers.

    I think the best thing to do is to learn to deal with it. Hand wringing won’t help.

    This article was written by Eamonn Sheridan at investinglive.com.

  • China has officially begun levying port fees on US ships

    China has officially begun levying port fees on US ships. CCTV with the report.

    More:

    • April 17 is the starting date of the annual billing cycle for the fees

    —

    China announced on Friday:

    • that it’d impose special port fees on US-linked vessels
    • issued implementation rules on port fees on US ships
    • exempted China-made ships owned by US companies from port fees
    • would adjust special port fees on US ships as required

    This article was written by Eamonn Sheridan at investinglive.com.

  • Reserve Bank of New Zealand to ease LVR restrictions

    RBNZ intends to ease mortgage loan-to-value ratio (LVR) restrictions from 1 December 2025

    • For owner occupiers, the limit on the share of new lending allowed with an LVR above 80% will increase to 25%
    • Also reviewed our DTI restrictions and decided to keep settings unchanged

    —

    DTI is Debt-to-income

    —

    • Housing market: The move should support first-home buyers and lift housing demand modestly.

    • Banking sector: Slightly greater flexibility for lenders, but the RBNZ’s retention of DTI limits signals a cautious approach to household leverage.

    • Policy outlook: The easing underscores the RBNZ’s confidence in financial stability and may complement expectations for gradual monetary easing in 2026 if inflation continues to moderate.

    NZD/USD is down a few tics on the announcement.

    This article was written by Eamonn Sheridan at investinglive.com.

  • UK retail sales slow as households brace for Reeves budget, Barclays and BRC say

    UK consumer spending slowed in September as households turned cautious ahead of Chancellor Rachel Reeves’s budget and faced rising energy bills, surveys from the British Retail Consortium (BRC) and Barclays showed.

    The BRC said total retail sales rose 2.3% year-on-year, the weakest since May and down from 3.1% in August, while like-for-like sales eased to 2.0%. “Rising inflation and a potentially taxing budget is weighing on the minds of many households planning their Christmas spending,” said BRC Chief Executive Helen Dickinson.

    Barclays reported a 0.7% annual fall in card spending after a 0.5% rise in August. Essential spending dropped for a fifth month, while non-essential spending growth was the weakest in over a year.

    Despite improving wage growth lifting confidence to a four-year high, nearly half of consumers said they were adjusting spending ahead of the budget, with one-third saving more. Retailers, meanwhile, face uncertainty over business rates and subdued demand heading into the “Golden Quarter.”

    —

    The weaker retail and spending data point to cooling domestic demand just weeks before Chancellor Reeves unveils her budget. Softer consumption could ease near-term inflation pressure but raises growth risks heading into the winter, reinforcing expectations for a cautious Bank of England.

    This article was written by Eamonn Sheridan at investinglive.com.

  • Staunch Trump ally Taylor Greene rings alarm bells on tariffs, deports, harm to business

    Republican congresswoman Marjorie Taylor Greene, a vocal Trump ally and prominent America First conservative, has voiced rare criticism of the administration’s trade and immigration policies, warning that some measures could backfire on U.S. businesses and households.

    US politics site ‘The Hill’ carries the article. In summary:

    Speaking on a podcast, Greene said she is hearing growing concern from manufacturers about the impact of tariffs, which she believes are raising costs and complicating production. “Major manufacturing companies are saying we’re having a problem with these tariffs,” she said, adding that ordinary Americans have yet to see much relief from inflationary pressures. “That should be the focus — not helping crypto donors,” she added, in a pointed reference to priorities within Trump’s policy circle.

    Greene also cautioned that an overly aggressive deportation policy could harm the economy by worsening labour shortages. “We have to do something about labour,” she said, “but that needs to be a smarter plan than just rounding up every single person and deporting them.”

    Her remarks mark a rare instance of intra-party dissent within the pro-Trump camp, underscoring tension between economic populism and business pragmatism as the administration balances tariffs, immigration enforcement, and domestic growth goals.

    —

    Greene’s comments add a political wrinkle to tariff policy, suggesting fractures within the America First bloc. Any widening dissent among congressional allies could pressure the administration to moderate trade or immigration measures seen as inflationary or disruptive to U.S. industry.

    This article was written by Eamonn Sheridan at investinglive.com.

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