Tag: us inflation

Stocks Recover from Gap-Down; Bond Yields Bouncing Back

Stocks in the U.S. market opened with a gap-down and recovered after bond yield tried to move up in the opening hours of the day. 

The S&P 500 crept into the green, bouncing up more than 0.64% from the day-low. Meanwhile, crude oil prices and bond yields fell after opening with a gap-up on Monday. Currently, strong corporate earnings and economic numbers are pushing the market up which is being hit by the global energy shortages.

• Stoxx Europe is down by 0.49%
• Dow Jones is flat
• NASDAQ is up by 0.45%

Goldman Sachs Set to Own All of China Unit

China has signaled that it will be opening up its financial system to big players from the U.S. by approving Goldman Sachs Group Inc’s application to full ownership of a key local unit that it has co-owned since 2004. The wholly-owned subsidiary will perform most key banking operations such as investment banking functions, trading, and wealth management. This clearance to own all of its operations by itself happened after Morgan Stanley earlier secured majority ownership of its operations in China. 

Former USFDA Commissioner Calls For A Probe Into Delta Plus Covid Variant

Former US FDA (Food and Drug Administration) Commissioner Scott Gottlieb on Monday called for thorough research into the mutated version of the delta variant, delta plus as Covid-19 cases surge in the U.K. He said that there is no clear indication that it’s more transmissible, but needs deeper analysis on this. The U.K. on Sunday has reported the highest daily rise in new cases since mid-July.

Amazon Seeks to Hire 150,000 Seasonal U.S. Workers

Amidst the unemployment crisis in the US, Amazon.com Inc. sought to hire 150,000 seasonal workers as the holiday season is around the corner. Competing companies such as Walmart Inc. and Target Corp. have also indicated plans to increase their hiring.  Many industries have been finding it difficult to hire during the pandemic as the labour force shrunk by 4.3 million workers compared to pre-pandemic levels.

The Indian market is also having a festive season with many consumer durables stocks including Havells, Bluestarco moving up for the last many weeks.

Green Investing Looks to Clean Up the Maritime Industry

Sustainable investing has been gaining traction as indicated by Seaspan Corp, the world’s largest containership lessor, selling blue bonds worth nearly $1 billion. These blue bonds are issued in the promise of funding vessels that will lower emissions and pollution at sea and are derived from the concept of green bonds which seek to fund environment positive initiatives. 

The first blue bond was headed by the country Seychelles and World Bank, raising $15 million. The increase in investors due to such environmentally-friendly objectives should ideally reduce the borrowing costs for the companies. But there is no guarantee that the funds are being directed to the promised projects.

China slows down with a weak GDP growth of 4.9% in third-quarter

China’s GDP 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. Industrial production did not reach the expected 4.5% mark and grew only by 3.1% in September. The power and shortage and rise in coal prices which led to many factories shutting down production is believed to have affected the growth.  Data also reveals the hesitation of businesses to invest in future projects. On a positive note, retail sales beat expectations crossing the predicted 3.3% growth to hit a 4.4% growth.

Geely’s Volvo Cars Gets Ready For Listing

Volvo Cars, owned by Geely said on Monday its Initial Public Offering(IPO) is priced within a range of 53 to 68 Swedish crowns(Rs 461-591) per share, with a valuation up to $23 billion(Rs 1,73,220 crores)and is expected to be one Europe’s biggest listings this year. The maker of models such as the high-end XC-90 SUV is expecting to raise $2.9 billion(Rs 21,800 crores) through the listing. At the time of writing Geely Holding is up by nearly 2%.

Oil prices climb to highest in years with COVID recovery

Brent crude oil futures reached the highest price since October 2018, rising by 1% to hit $85.73 a barrel and US West Texas Intermediate (WTI) rose by 1.4% reaching $83.40, the highest ever since October 2014. The rise in oil prices takes place as oil and diesel seem cheaper compared to gas and coal. Expect higher petrol prices in India also soon!

U.S. Markets Move Down Slowly; CPI Rises 5.4% YoY

U.S markets slowly moved down after a mixed opening, fueled by a 5.4% YoY increase in the consumer price index (CPI) due to supply disruptions. Crude oil is trading calm above the important resistance level around 82.5, after its rally to a 7-years high.

The S&P 500 fell for the fourth day after a small gap-up opening, while the 10-year Treasury yield slipped below 1.55%, The lower rates cooled off the pressure on tech shares, helping the NASDAQ100 to trade in the green.

• Stoxx Europe is up by 0.77%
• Dow Jones is down by 0.48%
• NASDAQ is up by 0.40%

Apple likely to Cut iPhone Production Due to Chip Shortage

US tech giant Apple is the latest one to take a hit due to chip shortage as it may cut the projected iPhone 13 production targets for 2021 by nearly 1 crore units to 8 crores. The company was expecting to produce 9 crore new iPhones from October to December of 2021, but Broadcom and Texas Instruments are struggling to deliver enough components for manufacturing. Over the past few days, Indian automakers were commenting that the chip crisis is cooling off. Let’s keep an eye on what’s happening in the coming days, as the Indian auto sector is having a bull run this week.

U.S Inflation Increases to 5.4% YoY in Sept

The Labor Department announced that the U.S consumer price index rose 5.4% in September from a year ago period and a 0.4% increase compared to August. The core inflation (excluding the volatile food and energy categories) rose 0.2% in September and 4% compared to a year ago. Powell and the White House have blamed supply chain disruptions for the high inflation.

China Coal Prices Hit Fresh Record Highs

China’s thermal coal prices on Wednesday rose to fresh record highs as recent floods affected major coal production plants. The country has already taken a range of steps to boost coal production and manage electricity demand at industrial plants, while power producers and other coal users have been increasing imports.

Hong Kong Suspends Stock Trading Due to Typhoon Kompasu

Hong Kong canceled its $6.3 trillion stock market trading on Wednesday as strong winds and rain from typhoon Kompasu affected the financial hub. Hong Kong Exchanges and Clearing suspended securities trading, including the Hong Kong-China stock connect and derivatives markets, on Wednesday after Kompasu affected after-hours trading on Tuesday.

Can’t Blame Climate Policies for the Energy Crisis: IEA 

International Energy Agency (IEA) said that government climate policies and the transition away from fossil fuels are not the reasons for the energy crisis in Europe and Asia. The rise in natural gas and oil prices is more a result of the economic recovery from the Covid-19 pandemic, which is boosted by a series of supply disruptions, long winter in Europe, and the drought in Brazil.

Hollywood Union To Walk Out on October 18

The International Alliance of Theatrical Stage Employees (IATSE), which represents thousands of art directors, camera operators, and editors, set October 18 as the strike date due to a dispute over pay and work conditions. This move will increase the pressure on studios, which are already struggling to shoot movies and shows due to pandemic restrictions. Both Netflix and Walt Disney are currently facing a weaker-than-expected growth in online subscriptions due to the challenges of getting new programming.