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.

Tech Shares Rise Amid Mixed Earnings; Oil Declines

Shares of technology stalwarts rose while the broader U.S. equity market was mostly lower amid a slew of earnings reports, a decline in commodity prices, and renewed concerns about economic growth. Bonds gained.

Google parent Alphabet Inc., Amazon.com Inc., and Tesla Inc. pushed the tech-heavy Nasdaq 100 higher for the third day. The S&P 500 and Dow Jones Industrial Average fluctuated between gains and losses after setting closing record highs Tuesday. 

• Stoxx Europe is down by 0.36%
• Dow Jones is down by 0.29%
• NASDAQ is up by 0.64%

Meme Coin Shiba Inu Hits Another All-time High

Meme coin Shiba Inu on Wednesday hit another all-time high of $0.00006681, skyrocketing over 40% in the last 24 hours. A petition on Change.org asking Robinhood to list Shiba Inu now has more than 326,000 signatures, the fuel behind the run. It has a market cap of $24 billion, more valuable than many companies in India including Adani Enterprises, Tata Steel, Tech Mahindra, and HDFC Life. India has the highest number of Shiba Inu holders on WazirX.

Tokyo Stock Exchange To Extend Trading Day By 30 Minutes

The Tokyo Stock Exchange is planning to extend the trading day by 30 minutes, from the current 5-hour trading. Tokyo has one of the shortest trading hours in the world. The Tokyo market trades between 9 a.m. and 3 p.m. local time, with a lunch break between 11:30 a.m. and 12:30 p.m. Japan is the world’s third-largest stock market with a total market capitalization of about $6.8 trillion.

NRF Estimates U.S. Holiday Sales To Rise More Than 10%

The National Retail Federation (NRF) said on Wednesday that U.S holiday sale is expected to increase between 8.5% and 10.5%, to between $843.4 billion and $859 billion(Rs 643 lakh crores), from November to December, compared with a previous high of $777.3 billion in 2020. The numbers don’t include automobile dealers, gasoline stations, and restaurants. NRF also said supply chain disruptions will have a huge impact on these numbers.

Higher Sales Help Harley To Beat Supply Chain Challenges

Shares of the motorcycle maker Harley-Davidson rose more than 8% on Wednesday on NYSE after higher sales beat estimates despite supply chain disruptions. Adjusted profit was reported at $1.18 per share compared to the estimate of 78 cents. Third-quarter revenue from motorcycles and related products rose 20%, to $1.16 billion (~Rs 8,694 crores).

Malaysia Says Risk from Biscuits Low After H.K. Group’s Warning

Health risk from cancer-causing substances in some ingredients used in biscuits is low, Malaysia’s Health Director-General Noor Hisham Abdullah said. Monitoring of biscuit products by the health ministry’s food safety and quality division since 2015 found that the average level of acrylamide was 246 microgram per kilo, below the 350 microgram level set by the European Union Commission Regulation, Noor Hisham said in a statement on Wednesday.

Robinhood’s Crypto Boom Collapses With Rivals Crowding Into the Market

The difference in Robinhood Markets Inc.’s crypto trading revenue between the second and third quarters is staggering. Crypto revenue totaled $233 million in the second quarter and $51 million in the third. There are so many options for buying and selling crypto now — even payment companies like Venmo are jumping in. The market for crypto wallets is saturated, yet growing. A wallet could make Robinhood a one-stop shop for retail traders who want to dabble in stocks and cryptocurrencies.

U.S. Markets Reach All-Time Highs; Earnings in Focus

Benchmark indices in the U.S market reached more all-time highs, with European markets reaching their record levels. Markets around the world are being boosted by corporate earnings and high liquidity in the economies around the world.

The S&P 500 and Dow Jones hit intraday record highs with United Parcel Service and General Electric gaining after strong quarterly results. NASDAQ is 0.3% away from its all-time high. Facebook fell after a revenue miss on their results. Big names in the U.S. market including Twitter, Alphabet, and Microsoft are reporting earnings after the market closes on Tuesday.

• Stoxx Europe is up by 0.67%
• Dow Jones is up by 0.37%
• NASDAQ is up by 0.86%

Japan Panel To Discuss Stimulus Package Blueprint In Early November

Japan’s economy minister said on Tuesday a panel led by Japanese Prime Minister Fumio Kishida will discuss a proposal for a stimulus package in early November, aimed at neutralizing the economic impact of the coronavirus pandemic. The proposal will consider long-term policy priorities such as building more supply chains, promoting innovation, and distributing wealth to low-income households.

Germany Slashes 2021 Economic Growth Forecast

Multiple media reports say that the German government has cut its GDP growth forecast for this year to 2.6%, down from the April prediction of 3.5%. At the same time, they lifted its estimate for next year to 4.1% from the previous prediction of 3.6% made in April. Similar to all other countries, supply chain disruptions are affecting Germany also, but the government expects the economy to normalize in 2023 with an expansion rate of 1.6%.

Singapore To Open Travel Lanes For Australia, Switzerland

The Civil Aviation Authority of Singapore said on Tuesday that it will allow people coming from Australia and Switzerland to enter starting from November 8  without any quarantine. The authority said that only fully vaccinated travelers will be able to enter Singapore freely after taking Covid-19 polymerase chain reaction tests, through the vaccinated travel lane-VTL. The daily quota for people arriving in-country via the VTL will be increased by 1,000 to 4,000 in total.

Cathie Woods tells Elon Musk that Technology will Ease Inflation

Ace investor Cathie Wood said in a response to Elon Musk said that new technologies will help beat the curve on inflation despite recent supply-chain bottlenecks related to Covid-19 and oil supply constraints.

Artificial intelligence, electric vehicles, robotics, genomic sequencing, and blockchain technology are among phenomena that will help moderate price pressures, the Ark Investment Management founder said in a reply to a tweet by Elon Musk about “strong” short-term inflationary pressure. 

HSBC Upgrades China Stocks To Overweight

HSBC Holdings on Tuesday upgraded the view on Chinese stocks to overweight, saying that issues such as stronger U.S. dollar, slow growth are already featured in. Beijing’s crackdown on private enterprise and tech war have made the dilemma that ‘the country is uninvestable’ and investors are having a too bearish view, HSBC said. The investment bank expects that the government has targeted measures to ensure growth and the market is ready for a rebound.

China Urges Evergrande’s Hui to Pay Debt With His Own Wealth

Chinese authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s deepening debt crisis, according to people familiar with the matter. Beijing’s directive to the Evergrande founder came after his company missed an initial Sept. 23 deadline for a coupon payment on a dollar bond, said the people, asking not to be identified discussing a private matter. Local governments across China are monitoring Evergrande’s bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.

U.S. Markets Cut Gains; Snap Falls 20% in Trade

Stocks in the U.S market moved up with a string of earnings reports from technology heavyweights including Facebook yet to come, while keeping in mind inflation concerns and rising crude oil costs.

The S&P 500 is now in the green after a volatile start, while the Nasdaq 100 stayed in green. PayPal moved up after the company said it isn’t pursuing an acquisition of Pinterest, ending guesses over a potential $45 Billion mega-deal. Tesla moved up after receiving an order for 1 lakh cars from car-rental company Hertz Global. Facebook results will be out today.

Stoxx Europe is up by 0.15%

Dow Jones is up by 0.15%
NASDAQ is down by 0.56%

Goldman Cuts China’s Growth Outlook To 5.2%

According to the Goldman Sachs Group, the Chinese economy will grow 5.2% next year, down from the previous expectations of 5.6%. Goldman said that weaker GDP growth and faster inflation in the third quarter were temporary and will pick up pace in the fourth one.

Banks, Merchants, Etc Can Soon Offer Crypto Services, Says MasterCard

Payment technology company Mastercard said on Monday that merchants, banks, and fintech in the U.S. now have the right to enable customers to buy, sell and hold cryptocurrencies. This is a part of Mastercard’s partnership with digital asset platform Bakkt Holdings and it will add crypto into its loyalty solutions, allowing its partners to offer cryptos as rewards. A piece of great news, right? At the time of writing Ethereum is up by $% and Bitcoin is up by 3.8%.

Tesla Rises On Huge Order From Hertz For 1 Lakh Vehicles

The shares of Tesla rose more than 7% on Monday in NASDAQ after Hertz(an American car rental company) announced its order for 100,000 Tesla cars. The order amount is $4.4 billion(Rs 33020 crores) and is expected to be delivered by the end of 2022. Another news that fueled the shares is Tesla’s Model 3 becoming the first electric vehicle to top monthly sales of new cars in Europe.

China’s Latest Covid-19 Outbreak Spreads To 11 Of Its 23 Provinces

China said on Monday that its latest Covid-19 outbreak had reached 11 of its 23 provinces and the health depart said that the outbreak is caused by the delta variant from overseas. China is one among the few countries that still consider lockdown to curb the spread of Covid-19. However Chinese market closed at 0.76% up on Monday, after Evergrande managed to avoid default on Friday.

Facebook, Alarmed by Teen Usage Drop, Left Investors in the Dark

The time spent for U.S. teenagers on Facebook was down 16% year-over-year, and that young adults in the U.S. were also spending 5% less time on the social network. The number of new teen signups was declining, and perhaps most concerning was a series of slides showing that young people were taking much longer to join Facebook than they had in the past. 

Alibaba Has Lost $344 Billion in World’s Biggest Wipeout

Few people could have predicted the downward spiral for Alibaba Group Holding, when founder Jack Ma delivered a blunt criticism of China’s financial system last October. Yet one year on, the technology titan has lost a whopping $344 billion in market capitalization — the biggest wipe-out of shareholder value globally, according to data compiled by Bloomberg. 

The World’s Most Consumed Edible Oil Is Facing a Supply Crunch

Palm oil production in Malaysia is on course for its weakest showing in five years as planters grapple with the worst-ever labor shortage in the second-biggest grower, and the low yields are likely to last through March. The country’s output may slide below 18 million tons this year, according to Nageeb Wahab, chief executive at the Malaysian Palm Oil Association, a growers’ group that represents 40% of palm plantations by area.

U.S. Markets Cut Gains; Snap Falls 20% in Trade

Stocks in the U.S market moved with volatility on the last day of the week. Big tech companies fell after disappointing corporate results.

The S&P 500 fluctuated and the NASDAQ fell after Snapchat’s parent company fell 22%. Other names in the tech world including Facebook, Twitter fell sharply. Quarterly results from Snap were disappointing after it said ad spending increased due to policy changes by Apple and other stocks including Facebook, Google-owner Alphabet, Pinterest, and Twitter also fell sharply.

• Stoxx Europe is up by 0.72%
• Dow Jones is up by 0.41%
• NASDAQ is down by 0.18%

London Stock Exchange Q3 Updates

The London Stock Exchange said on Friday that its total income rose to 1.78 billion pounds (Rs 18,544 crores) during the third quarter ended September, compared with 1.75 billion pounds a year ago. LSE Group also said that it was on track to reach its cost savings from the integration of the data platform Refinitiv. Refinitiv was bought by LSEG in a $27 billion(Rs 201898 crore) deal finalized in January 2021.

U.S. Would Defend Taiwan From China Attack, Says Biden

President Biden said that the U.S. is committed to defending Taiwan from a Chinese attack. He also said that America doesn’t want a Cold War with China, but won’t change any of the views. China considers the island as part of its territory and has reserved the right to use military force to bring it under its control. 

2021 Production Loses To Be Higher Than Forecast: Renault

The French carmaker Renault said on Friday that production losses in 2021 due to a global semiconductor shortage will be far larger than previously forecast. But they maintained their profit outlook, powered by higher car prices and cost cuts. The CFO said the chip shortage crisis is currently very bad and don’t have clear visibility because the information coming from suppliers is very unreliable

China Trying to avert another Energy Crisis

Oil refineries in China are trying to push and increase production to avoid adding another energy crisis. The country needs more diesel as it tries to boost itself from supply shortages seen in coal and natural gas. State-owned refiners are set to boost crude processing and prioritize the production of diesel to use in heating to powering trucks and industrial purposes.

Evergrande Staves Off Default With Last-Minute Bond Payment

China Evergrande Group pulled back from the brink of default by paying a bond coupon before Saturday’s deadline, giving the property giant at least another week to come to grips with a debt crisis that has rattled investor confidence in the world’s second-largest economy.

Astra Covid Vaccine Found Safe for Pregnancy, Fertility in Study

AstraZeneca Plc’s Covid-19 vaccine has no adverse impact on pregnancy or fertility, according to data from a small group of trial participants who conceived during a study. The rate of miscarriage was roughly the same between the vaccine and placebo groups, and no stillbirths or neonatal deaths were recorded, according to an analysis of the outcomes published in The Lancet medical journal late Thursday. Fertility was also shown to be unaffected by the vaccine.

Malaysia to Open Langkawi to Foreign Tourists in Bubble Plan

Malaysia will reopen the tourist haven of Langkawi islands to overseas visitors beginning Nov. 15, under a pilot international tourism bubble project that will run for three months. The government has approved protocols for international tourists to enter the islands without having to quarantine, Prime Minister Ismail Sabri Yaakob said in a statement on Friday.

U.S. Markets Consolidate Near All Time Highs

Stocks in the U.S. market move sideways after hitting after indices hit all-time highs yesterday. Traders are evaluating different quarterly results along with fears of inflation. The tech-heavy NASDAQ is slightly in the green. Bond yields have moved up. 

• Stoxx Europe is up by 0.01%
• Dow Jones is down by 0.36%
• NASDAQ is up by 0.20%

Britain And New Zealand Enters A Free Trade Deal

Britain and New Zealand have agreed on a free trade deal to reduce tariffs and improve services trade after 16 months of negotiation. PM Jacinda Ardern said tariffs on 97% of products will be eliminated for both countries the day the deal comes into force. The deal would provide a boost of almost NZ$1 billion to its GDP. The deal will reduce tariffs on bulldozers, wine, buses, and clothing. Analysts say that the agreement is not expected to give a boost to the UK economy, but will help Britain to join the Trans-Pacific Partnership (CPTPP), a free trade area of 11 Pacific nations including New Zealand.

Dutch Forensic Lab Decodes Tesla’s Driving Data

The Dutch government’s forensic lab said on Thursday it had decoded electric carmaker Tesla’s highly guarded driving data storage system. This could reveal a lot of information that could be used to investigate many accidents it had in the previous quarters. Netherlands Forensic Institute (NFI) said that Tesla cars store data from accidents, data from autopilot mode, speed, braking, etc. Now, far more data has been discovered than investigators had previously been aware of. The stock opened with a 1.5% gap down in NASDAQ because of the news, but just after the market-open, it shot up. This bounce-back is majorly fueled by its strong quarterly data.

China Confirms that Property Market is Under Control

China has promised that its property market will be under control amidst concerns about Evergrande indicating chances of default in its payments. China Banking and Insurance Regulatory Commission has opined that the government will not use the real estate sector as a measure of the short-term economic stimulus. Strict measures to regulate the property market have had negative effects due to which sales of property developers have gone down. Around the world, including in India, home prices have been rallying due to low-interest rates and excess supply of money in the economy.  

Oil Slips From 7-Year High Amid Broader Commodities Decline

Futures in New York declined as much as 3.2% on Thursday after holding at the highest since 2014 this week. Technical indicators have signaled oil has been due for a pullback since earlier this month. Meanwhile, the resurgence of lockdowns in Eastern Europe and Russia due to rising coronavirus cases is threatening the global economic recovery that has buoyed commodities and energy markets.

U.K Gas Crisis To Get Relief From Two New Projects

Similar to all other countries, the U.K is also facing an energy crisis and new two gas projects are expected to increase the gas outputs, giving some relief to the issue. Royal Dutch Shell and NEO Energy have already started gas production in recent weeks and two news projects from Harbour Energy and IOG are scheduled to start in the coming quarters. With energy-power prices around the world reaching new highs, governments are trying to increase the outputs. The impact has already been seen in the Indian market with stocks like Tata Power, Coal India, etc hitting fresh 52-week highs.

Renault To Share Data Key To Reduce Supply Chain Disruptions

The Head of Supply Chain of Renault Alliance Group said on Thursday that the company has a lot of data that can be shared with suppliers, logistic partners, and governments to reduce supply chain disruptions. The transition to electric mobility and climatic situations is challenging automakers in supplying the units. Renault Alliance group includes Nissan Motors and Mitsubishi Motors.

U.S. Markets Shoot up with Corporate Earnings in Focus

Stocks in the U.S. market moved up for the sixth consecutive day, as bulls take up equities following generally good corporate earnings. Major indices and benchmarks, including the S&P 500 and Dow Jones, are within reach of their all-time highs.

Telecom provider Verizon moved up after better-than-expected results, and AT&T is joining it. Netflix opened with a gap-up after a bad outlook.

• Stoxx Europe is up by 0.28%
• Dow Jones is up by 0.44%
• NASDAQ is up by 0.25%

Bitcoin Hits Fresh All-Time Highs, After U.S. ETF Debut

Crypto investor’s favorite and the world’s largest cryptocurrency – Bitcoin on Wednesday hit a fresh all-time high, a day after the debut of the first U.S. bitcoin futures-based Exchange-Traded Fund (ETF). It has been in a wonderful rally for Bitcoin after taking support around $40k during the September end. From there, it moved 60% in just three weeks. At the time of writing, it is consolidating near the fresh all-time high of $66,342. ProShares Bitcoin Strategy ETF started trading yesterday, giving confidence to millions of crypto investors.

UBS turns optimistic about Chinese equities

Chinese equities were upgraded as bullish by UBS Group AG as the tighter economic regulations over the last few months have already priced in. Corporate earnings and valuations have been anticipated to improve. The general sentiment has gone up as investors believe that the worst effect of the stringent regulatory measures could have subsided.

India orders for more LNG from Qatar

India has sought around 50 cargoes from Qatar of LNG amidst the global energy shortage.

This is over and above the 115 cargoes under the State-linked importer Petronet LNG Ltd.’s long-term contract for the coming year. This unusual move, especially after having thought that the same was too expensive in 2015, backs the desperation of buyers with the energy crisis around the world.  

Citigroup set to sell its loan books in Asia

Citigroup is ready to sell its consumer banking assets in Asia as DBS Group Holdings Ltd. and Standard Chartered Plc show interest. Lenders are drawn to the deal by the high fees from credit cards and wealth businesses. Offers for retail assets (loans) in Indonesia, the Philippines, Taiwan, and Thailand are due Friday while those in India are due next week. Indian companies including HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, and DBS India are also looking to snatch the Rs. 15,000 crore bid.

U.K Not To Have A Fresh Lockdown

U.K Business Secretary Kwasi Kwarteng said on Wednesday the government is not planning a fresh lockdown even though the Covid-19 cases are rising. Kwarteng said that the number of cases is high, but hospitalizations and deaths are much lower than at the start of the year due to the successful vaccination drive. UK Covid-19 new daily cases have risen above 30,000 since early September.

U.S To Vaccinate Children With Smaller Doses

The White House on Monday explained its plans to vaccinate younger children against Covid-19 with smaller doses administered using smaller needles if the shots are authorized by regulators. President Joe Biden’s Covid-19 response coordinator, Jeff Zients, also said that the government has ordered enough supply to vaccinate all kids from 5 to 11 and the new strategy will focus on enlisting paediatricians to work with parents, rather than forming vaccination centers. 

Where do we stand right now? Digging deep into this, we can understand that Covid-19 is trying to make a comeback with Moscow going into lockdown, the U.K reporting higher cases and signs of new Covid variants. So, vaccinating a maximum number of people is the only option we have and India has already vaccinated 99 crores of people. That is, close to three-fourths of the adult population in India have received at least one dose and have administered more vaccine doses than any other country in the world apart from China.

German Agency Regulates Returns From Power, Gas Business

Germany’s federal network agency on Wednesday cut the permitted returns from new infrastructure for power and gas networks in the years to 2029, a move to protect consumers from higher energy bills. Consumers are facing an expensive winter heating season due to the rise in energy prices. The regulator proposed a permitted return for new infrastructure of 5.07%, versus 6.91% now, and rates for old infrastructure were set at 3.51%, down from 5.12%.

U.S. Stocks Rise after Quarterly Earnings Reports; Bitcoin Rises

Bitcoin hit a six-month high and almost hit its all-time high as traders bet that the listing of the first exchange-traded fund (ETF) that tracks Bitcoin futures on the stock exchange would attract investment into cryptocurrency. The ProShares Bitcoin Strategy ETF on NYSE Arca, owned by Intercontinental Exchange Inc (ICE.N), listed on Tuesday under the name BITO. Bitcoin has gone up about 40% this month owing to the anticipated bitcoin ETF. Bitcoin futures rose 1.2%, last trading at $62,380. 

ETFs are securities that track an asset and can be traded on a stock exchange. Crypto ETFs have launched this year in Canada and Europe as well.  

Stocks in the U.S. market moved up in early trading with corporate earnings pushing up major stocks. 

The S&P 500 gained 0.3% with Johnson & Johnson moving higher after beating estimates. Crypto stocks are in high demand with Bitcoin reaching all-time highs, ahead of the planned launch of Exchange Traded Funds (ETFs). Stocks in Europe also moved up.

• Stoxx Europe is up by 0.26%
• Dow Jones is up by 
• NASDAQ is up by 0.45%

Xiaomi To Mass Produce Its Cars In 2024

Chinese smartphone maker Xiaomi CEO Lei Jun said on Tuesday it will mass-produce its cars in the first half of 2024. The shares of Xiaomi rose 5.4% today, the biggest daily percentage rise since May 12. It’s for sure that the EV era is coming. So, analyze the stocks from bearing producers to battery makers that will benefit from the EV revolution in India and be prepared to enter them at the right time.

Hungary Central Bank Hikes Rates As Expected

Hungary’s Central Bank on Tuesday raised its benchmark base rate by 15 basis points to 1.8% and pledged to fight against rising inflation risks. Deputy Governor Barnabas Virag said that the rate hike will continue in the coming months also. BUX is a blue-chip stock market index consisting of up to 25 (currently 14) major Hungarian companies trading on the Budapest Stock Exchange (BSE). It didn’t react much to the rate hike because it was already expected and is trading flat.

More Info: When interest rates are raised, both businesses and consumers will cut short their spending. Then the companies will have lesser business and stock prices may fall if the hike is unexpected. If the hike is as expected, there may not be a sudden fall because the impact would already be featured. We may witness such things in Indian markets also in the coming quarters.

Ericsson To Cut China Operations

Swedish networking and telecommunications company Ericsson on Tuesday announced to cut China operations after facing a huge sales fall in the country. This can be considered as the reaction to Sweden’s ban on China’s Huawei from selling 5G gear in the country. The company has reported better than expected third-quarter earnings fueled by strong sales of 5G equipment in most of all other countries except China. Ban has been imposed on Huawei a year ago, and Ericsson was losing market share in China since then

China’s Property Sector Shrinks For 1st Time Since Pandemic 

The property and construction sectors of China shrunk in the third quarter for the first time since the beginning of the pandemic owing to the debt crisis of one of the biggest developers, Evergrande and Beijing’s stringent measures to regulate the property market. The real estate market output shrunk by 1.6% whereas the output in construction industries shrunk 1.8% in the third quarter. This comes as the China GDP slows down and grew only 4.9% in the third quarter from a year ago compared to the expected 5.2% as reported by the National Bureau of Statistics. In India, realty stocks rallied last month on account of high disposable income among rich families.

China considers intervening in the Coal Market to control surge in prices

As the China coal futures fell 8% to their downward limit overnight, state planner is thinking about intervening in the coal market. The most active thermal coal contract on the Zhengzhou Commodity Exchange fell 4.4% overnight. The National Development and Reform Commission is reviewing measures to bring the record high prices for fuel under control. China has been struggling with an energy crisis that has been slowing the country’s growth while affecting the entire globe. Meanwhile, Beijing’s state-asset regulator has pushed for more coal production at mines.

Evergrande makes interest payment on yuan bond

Evergrande Group’s main onshore unit has made payments against the interest due on a yuan bond, after having warned of default and missing the initial interest payment on many dollar bonds. The offshore bonds of Evergrande are trading at around 20 cents on the dollar, and the stock has dropped 80% this year.

U.S. Markets Move Up Slowly; Crude Oil Rally Creates Inflation Fears

Stocks in the U.S. market opened with a gap-down and moved up as traders assessed inflation fears against the economic rebound. Crude oil continued its rally to a 7-years high, just after breaking an important resistance from 2018.

• All 3 benchmark indices in the U.S including the tech-heavy NASDAQ stayed in the green after 2 hours of trade. Shares of the country’s largest company, Apple, moved up more than 1.2%. The current market-wide rally is led by commodity and financial shares.

• Stoxx Europe is down by 0.026%
• Dow Jones is up by 0.39%
• NASDAQ is up by 0.55%

Lenovo Takes A Hit After Withdrawing Shanghai Listing Application

The shares of Lenovo fell more than 17% on Monday after the tech giant withdrew its application for a 10 billion yuan (Rs 11,644 crores) listing in Shanghai. The stock hasn’t witnessed such an intraday decline in over a decade. The withdrawal is days after it had been accepted by Shanghai’s STAR Market and is due to some issues in the validity of financial information in its prospectus.

China To Regulate Data Sent Abroad By Cars

China said on Monday that it has decided to impose major assessment measures to regulate data sent abroad by vehicles. This lies in line with the country’s efforts to protect data and privacy. China said automakers and tech companies are gathering more data from vehicles and it’s raising privacy and security concerns.

Cleveland-Cliffs Rises On Buying Ferrous Processing and Trading Company

The shares of Cleveland-Cliffs rose 5% on Monday in NYSE after the company decided to buy Ferrous Processing and Trading(FPT) Company that gives access to prime scrap and expand its portfolio of high-quality iron-ore pellets and other ferrous raw material. FPT owns 15% of the domestic merchant prime scrap market in the US and it will be a great addition to Cleveland-Cliffs, the largest supplier of flat-rolled steel in North America.

Dollar Nears A 3-year High Vs Japanese Yen

The U.S dollar rose on Monday, nearing a three-year high against the Japanese yen as investors expect the U.S. Federal Reserve to announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures. (Tapering is the gradual slowing of the pace of the Fed’s large-scale asset purchases). The Japanese currency, which is highly sensitive to global events, hit 113 yen per dollar for the first time since December 2018 in the morning London trade. The Indian Rupee has also considerably fell against the US Dollar this month.

Southwest Expects Flight Traffic To Normalize This Week

Southwest Airlines of the United States said on Monday it expects passenger traffic to reach a normal level this week after it had to cancel more than 1,900 scheduled flights over the weekend. The cancellation was majorly due to unfavorable weather and air traffic issues in Florida. In a larger view, the share of major airlines across many countries is recovering from the pandemic hit, and they are one of the sectors that took more time to reach pre-Covid highs.

Merck seeks FDA Emergency use Authorization for Antiviral Covid-19 treatment Molnupiravir

Merck, the biopharma company which last week unveiled its antiviral drug Molnupiravir, is trying to get US Food and Drug Administration emergency use approval. The drug comes in a capsule form, and it would be the first oral antiviral treatment to tackle Covid-19 if authorization is granted. Merck is tied up with Divi’s Lab in India for distribution of Molnupiravir.

Studies that were stopped midway revealed that the drug worked well in more than 700 patients randomly assigned to take the pill or a placebo. However, data from the trial has not been peer-reviewed or published. 

Singapore Travel websites crash after border opening

In a major confidence boost to travel companies around the world, Singapore, one of the most strictly locked down countries, has decided to open its borders to countries such as the US and UK. 

The country has increased the number of countries that qualify for quarantine-free travel. Following this, travel websites in the country crashed as a huge flow of travellers logged in. 

Global Energy Crisis Piles Pressure on Aluminum Supply

Prices of Aluminum jumped to its highest since 2008, as the power crisis in China deepened. The metal requires high amounts of energy to be manufactured, and demand is ever high as it is used in everything from beer cans to iPhones. 

KKR’s billionaire founders hand over reins to Joe Bae, Scott Nuttall

Brent Oil Approaches $85 With Energy Crisis Boosting Demand

Global benchmark Brent crude advanced, approaching $85 a barrel, as a growing power crisis from Europe to Asia boosts demand for oil ahead of winter. Brent futures rose as much as 2.7% to the highest since October 2018 on Monday. Prices of coal and natural gas have surged globally with stockpiles running low before the Northern Hemisphere winter, prompting some switching to oil products such as diesel and fuel oil.

China Coal Futures Surge to Record as Flood Swamps Mine Hub

Heavy rains and flooding expanded mine shutdowns in China’s biggest coal-producing region, sending prices to a record and hindering efforts by Beijing to boost energy supplies for winter. Floods have closed 60 of the 682 coal mines in Shanxi province, a region that has produced 30% of China’s supply of fuel this year, adding to a worsening energy crisis that threatens the country’s economic growth.

U.S. Markets Shoot Up; Energy Fears Subside

Equities in the U.S. market consolidated with some volatility. The indices are trying to close the week flat after closing more than 1% up or down for the last many days. Treasury yields have started to gain with lesser than expected jobs being added in September. The Fed is still expected to announce cutbacks to its bond buying programme next month, but the lower jobs data is good for keeping inflation down. Gold prices are trading flat, after trying to give an upwards move.

Stoxx Europe is down by 0.24%
Dow Jones is up by 0.3%
NASDAQ is down by 0.27%

Asda To Expand Rapid Delivery Business

Britain-based supermarket group Asda said on Friday it will expand a rapid online service for delivery within one hour to 96 stores. They have already completed the trial process and it topped expectations. Asda in June launched the “Express Delivery” service with a four-store trial. Customers can order up to 70 grocery products for delivery within one hour if they live within a three-mile radius of a store

Norway GDP Rises in August

Data from Statistics Norway (SSB) on Friday showed that August mainland GDP, which excludes oil and gas production, jumped 1.1% compared to the revised 0.6% in July. Developments in fisheries made significant contributions to the higher growth. Economists are expecting a hike in interest rates by the end of this year.

Hungary PM To Hike Wages Ahead Of 2022 Election

Hungary Prime Minister Viktor Orban, who faces elections next year said on Friday the government will raise nurses’ salaries by 21% from January and plans to lift the monthly minimum wage to 200,000 forints (Rs 48200). He also said that the government will cut taxes for businesses if they are ready to raise the minimum salary. 

Brazil Crosses 600,000 Covid-19 Deaths

Brazil on Friday become the second country in the world to pass a dark milestone, 600,000 COVID-19 deaths. More than 70% of Brazilians have received the first dose, but the slow start in vaccination adversely affected the efforts to escape from Covid spread. The United States reported 6 lakh deaths in June. Deaths in the country are down 80% from their peak of more than 3,000 per day in April.

Taiwan Exports Surge to Record, Defying Predictions of Slowdown

Taiwan’s exports grew faster than even the most bullish economist forecast last month, fueled by ongoing global demand for semiconductors. Exports rose 29.2% in September from a year earlier to a record $39.7 billion, according to a statement from Taiwan’s Ministry of Finance on Friday. That compares to a median estimate of 25% in a Bloomberg survey of economists.

Evergrande Creditors Brace for Battle on Fate of Offshore Assets

Kirkland & Ellis and Moelis & Co. are working on contingency plans with offshore holders of China Evergrande Group’s bonds who fear the struggling company may sell assets that they’re counting on to back up their claims if the business collapses. The law firm and New York-based investment bank are advising a group that so far includes six members holding $2.5 billion of Evergrande offshore bonds, a Moelis managing director said on a call with bondholders Friday.

China’s Energy Crisis Is Hitting Everything From iPhones to Milk

The hit from China’s energy crunch is starting to ripple throughout the globe, hurting everyone from Toyota Motor Corp. to Australian sheep farmers and makers of cardboard boxes.

U.S. Markets Shoot Up; Energy Fears Subside

Equities in the U.S. market moved up sharply as fears of an energy crisis eased. Yesterday, Russian President Vladimir Putin had offered to increase supplies to Europe and gas prices cooled down.

The S&P 500 and NASDAQ 100 both gained more than 1%, with the rally led by tech Apple and Facebook. European equities also moved up, the Central Bank of Europe looking to bring in new liquidity programmes. The debt ceiling issue between the Democrats and Republicans in the U.S. is also expected to be resolved soon.

Stoxx Europe is up by 1.61%
Dow Jones is up by 1.50%
NASDAQ is up by 1.67%

U.S. Weekly Jobless Claims Drop Once Again

The U.S Labor Department said on Thursday the initial jobless claims dropped by 38,000 to a seasonally adjusted 326,000 for the week ended Oct. 2 and this is the biggest drop in three months. This indicates the economic recovery after the Covid lockdown. California led the drop in claims followed by Michigan, Ohio, Washington DC, and Missouri.

IMF Asks Governments To Make Fiscal Plans To Tackle Pandemic Debt

The International Monetary Fund(IMF) said on Thursday that governments should plan a more sustainable budget with policies that win the trust of investors. But each country can decide the timing and pace of the policies based on its circumstances. IMF also said that fiscal plans should be flexible to allow economies to stabilize and avoid cuts in key public investments.

Venezuela Blames IMF On Covid Fund Delay

Venezuelan Vice President Delcy Rodriguez said on Wednesday that the country has not received funds from International Monetary Fund (IMF) to fight the COVID-19 pandemic. The country is expecting around $5 billion(RS 37,422 crores) in Special Drawing Rights (SDR) as part of a $650 billion(Rs 48 lakh crores) global effort to boost liquidity for the world’s most vulnerable countries. Venezuela’s central bank a few days back reported an increase in reserves of $5.1 billion but did not specify the origin of the funds

Tilray Gains On Higher Cannabis Demand

The shares of Canadian pharmaceutical and cannabis company Tilray rose more than 4% on Tuesday in NASDAQ after reporting a higher revenue from the Cannabis business. From June to August revenue jumped to $168 million(Rs 1257 crores) from $117.5 million(Rs 875 crores) a year earlier and the net cannabis revenue jumped 38%. Legal acceptance of cannabis in more states in the U.S also helped the business. But the net loss increased to $34.6 million in the first quarter from $21.74 million, caused by the 175% jump in total operating expenses.

UAE To Be Net Zero Emissions By 2050

The United Arab Emirates on Thursday launched a plan to be net-zero emissions by 2050 and would invest 600 billion dirhams (Rs 12 lakh crores) in renewable energy. UAE has already invested $40 billion(Rs 2 lakh crores) in the past 15 years in clean energy. Its first nuclear power plant, Barakah, is expected to produce 14 GW of clean energy by 2030, up from about 100 MW in 2015.

U.S. Markets Volatile; Dip Buyers fight Bears

Stocks in the U.S. market moved sharply around in the first few hours of trading, continuing on its 4th day of volatile trade this week. 

The S&P 500 fell more than 1% after opening but managed to gain back a bit. The NASDAQ 100 is trading flat after opening in the red. Every day of this week, the S&P 500 has moved more than 1%. European indices, which were in deep red when the Indian market closed, have slowly managed to gain back. Stocks were in the red earlier with Natural Gas prices in Europe jumping nearly 40%. Russia’s President Vladimir Putin said the country is ready to help, and things have now cooled down.

Stoxx Europe is down by 0.94%
Dow Jones is down by 0.77%
NASDAQ is down by 0.38%

Tesco Jumps On Higher Profits

Britain’s biggest retailer- Tesco on Wednesday raised its full-year earnings outlook after its store and online operations reported a better-than-expected 16.6% increase in profit. The sales helped the company to reduce net debt by 1.7 billion pounds (Rs 17,200 crore)) since February, and so it is planning to buy back shares. At the time of writing the stock is 5% up.

German August Industrial Orders Slip More Than Expected

Data from Federal Statistics Office on Wednesday showed that German industrial orders in August dropped more than expected due to weaker demand from other countries. After reporting unusually strong gains in June and July due to major contracts, orders for goods ‘Made in Germany’ fell by 7.7% in August. Anyway, overall industrial orders are still at a higher level and are already 8.5% above their pre-crisis levels of February 2020.

U.S. Private Payrolls Top Estimates

The ADP National Employment Report showed on Wednesday that U.S private payrolls rose above estimates in September as more businesses like restaurants started operating. Private payrolls increased by 568,000 jobs in September and the numbers for August were revised lower to 340,000 jobs instead of the initially reported 374,000.

Crude Oil Prices Fall Back Down with Supplies Increasing

Crude Oil prices in New York moved down after a U.S. government report showed that its stockpiles of crude increased by more than expected. Futures of West Texas Intermediate(WTI) Crude Oil in New York has fallen nearly 2% today. The commodity is still trading above an important level above $76/barrel.

Russia also signaled that it would increase supplies to Europe to help ease the current natural gas crisis.  

Russia To Stabilize Soaring Global Energy Prices

The crude oil price fell heavily on Wednesday after Russian President Vladimir Putin said the country is ready to stabilize soaring global energy prices and would boost supplies to Europe. Russia has been limiting the supplies for many days and crude oil prices continued hitting multi-year highs. He also said that the jump in oil price is a threat to industrial activity and would cause inflation to rise. U.S crude oil price has fallen more than 3% from highs.

Sweden And Denmark To Pause The Use Of Moderna’s Covid-19 Vaccine For Younger People

Sweden and Denmark said on Wednesday the countries have decided to pause the use of Moderna’s COVID-19 vaccine for younger people because of possible rare side effects. The side effects include Myocarditis, which is an inflammation of the heart muscle and can reduce the heart’s ability. Sweden and Denmark now recommends the Comirnaty vaccine, from Pfizer/BioNTech