FT News Briefing Schrödinger’s dead cat bounce
Jun 22, 2022
The S&P 500's surprising 2.4% rise sparks debate among analysts, highlighting ongoing market volatility. Tensions surface as Russia threatens Lithuania over EU sanctions, showcasing the geopolitical stakes involved. The podcast dives into the pressing issue of rising food prices linked to the Ukrainian conflict, questioning the ethics of using crops for biofuels. Additionally, Kellogg announces plans to split into three companies, reflecting strategic shifts amid economic challenges that could reshape the food industry.
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S&P 500 Bounce
- The S&P 500 saw its best performance since late May, climbing nearly 2.5% on Tuesday.
- However, stocks remain in a bear market, and the rally's cause is uncertain, possibly due to bargain hunters or short covering.
Dead Cat Bounce?
- A "dead cat bounce" describes a temporary market spike during a downward trend.
- It's uncertain if Tuesday's rally is such a bounce, as the market's future direction is unknown.
Russia-Lithuania Tensions
- Russia threatened Lithuania with "painful measures" for blocking sanctioned goods to Kaliningrad.
- Lithuania, however, appears unfazed, believing Russia's options for retaliation are limited.