U.S. stocks move to all-time highs; Crude Oil Falls
U.S. stocks reached all-time highs with fresh corporate earnings reports. Bond yields continued to be volatile.
Ford Motors and Tesla pushed the S&P 500 index higher. The Dow Jones index also moved back up from Wednesday’s losses. The Treasury yield curve inverted between 20 and 30 years on Thursday for the first time since the U.S. government reintroduced a two-decade maturity in 2020.
- Stoxx Europe is up by 0.15%
- Dow Jones is up by 0.48%
- NASDAQ is up by 1.21%
UK Car Output Falls To The Lowest Sep Level Since 1982
The data from the Society of Motor Manufacturers and Traders (SMMT) shows that U.K car production was dropped by 41.5% in September compared to the same month of the previous year. A total of 67,169 cars was produced, the lowest September level since 1982. The shortage of semiconductors is affecting automakers worldwide. In India, companies like Maruti are failing to meet the demand from customers.
WHO In Need Of $23 Billion To Expand Access, Fight Covid-19
The World Health Organization(WHO) estimates $23.4 billion for its ACT-Accelerator plan that aims to help provide access to Covid-19 vaccines, treatments, and tests in low- and middle-income countries. The organization is targeting to vaccinate at least 40% of people in every country by the end of the year. The organization also said that the estimates are far below the ‘trillion dollar’ recovery plans of wealthier countries.
Trying To Bring Down U.S.- China Tensions, Says U.S. Trade Chief
U.S. Trade Representative Katherine Tai said on Thursday that she is in talks with China to bring a healthy trading relationship between the countries, which is negatively impacted by the recent events. Since March, Tai has been conducting a top-to-bottom review of Washington’s China trade policy. The two countries are in the final months of the “Phase 1” U.S.-China trade deal, which called for China to boost purchases of U.S. farms and manufactured goods, energy, and services by $200 billion over the two years to the end of 2021 compared to 2017 levels.
No New Targets For China In Climate Summit
China- the world’s biggest emitter of greenhouse gases said at the COP26 summit in Glasgow it’s continuing with the current climate change targets to zero out emissions. China currently has plans to reach peak greenhouse gas emissions before 2030 and to hit net zero by 2060. China could have set a better target, as it’s a major source of methane emissions, the biggest producer and consumer of coal.
Bulls Return to China’s Markets Just as Risks Start to Multiply
The recent pummeling in China’s markets has made their valuations look attractive relative to almost anything, but bulls may find they need strong nerves to stay the course in a country that repeatedly shocked global investors this year. The rationale for why much of the sell-side is turning more confident on China right now is that things can’t get much worse. Analysts and investors are betting prices already reflect a slowdown in the property market, weaker growth, and President Xi Jinping’s campaign to shake up private enterprise.
Evergrande’s Next Bond Deadline Nears With Contagion Risk Rising
China Evergrande Group’s next bond payment deadline is fast approaching as investors scrutinize the developer for clues on the severity of a cash crunch that’s eroding confidence in other highly indebted peers. The 30-day grace period on Evergrande’s $45.2 million coupon payment that was initially due Sept. 29 is set to end on Friday. The closely-watched deadline comes amid a selloff in Chinese junk bonds that were paced on Thursday by Kaisa Group Holdings Ltd., one of the property sector’s largest issuers of dollar debt.