The US stock market closed in the green zone due to the strength of the utilities, technology, and industrial sectors. The Dow Jones increased by 0.30%, the S&P 500 added 0.41%, and the NASDAQ Composite increased by 0.47%. Reducing the QE program seems to be a done deal for the Federal Reserve’s November meeting. Fed Chairman Jerome Powell has set a very low bar for the labor market in terms of what the Fed needs to see in order to begin cutting the stimulus program.
The well-known investor and manager Warren Buffett claims that the US will not face a debt crisis as long as the country issues debt in its own currency. He says that inflation and excessive money printing are the only real risks of government borrowing.
According to Bloomberg, more than $1.5 billion has been injected into four of the highest-yielding exchange-traded funds in the US in recent days. The infusion of funds came just as the chairman of the Securities and Exchange Commission warned that a derivatives-based style of investing was not suitable for everyone.
European stock markets decreased yesterday amid inflation fears and rising government bond yields. The Stoxx Europe 600 composite index of major companies lost 1.03%, Germany’s DAX index decreased by 1.5% (to its lowest in five months), the British FTSE 100 decreased by 1.15% (to its lowest since late September), the French CAC 40 lost 1.3%, Spain’s IBEX 35 and Italy’s FTSE MIB lost 1.7% and 1.35%, respectively. Analysts are worried about the effects of the cold winter and energy shortages in Europe, as EU energy demand hit a 25-year high and credit risk in Europe rose to its highest level since March.
Denmark and Sweden have temporarily stopped offering Moderna Covid-19 vaccines to people under 18 because of the risk of side effects for the heart muscle.
US oil reserves increased by 2.3 million barrels in a week. Goldman Sachs predicts that the energy crisis will lead to an increase in oil consumption later this year, as China has ordered state-owned firms to ensure energy supplies for the winter at any cost. But OPEC officials believe a price of $70 to $80 a barrel is optimal for both producer and consumer. The electricity crisis is worrying energy markets from Europe to Asia, where fuels that can be used for heating or power generation, such as propane, diesel, and fuel oil, are in high demand.
Today, Asia-Pacific stock indices returned to the green zone. All major Asian indices (Hang Seng, Kospi, Nikkei 225, ASX 200) increased yesterday. Mainland China’s exchanges are closed for holidays this week.
US Secretary of State Blinken says that China should stop its actions against Taiwan because China’s steps are provocative and destabilizing.
China’s state-owned COMAC is close to bringing the C919 passenger airliner to market, which is a direct competitor to the Airbus A320 and Boeing 737 MAX.
India’s Silicon Valley, Karnataka state has banned online gambling.
Main market quotes:
- S&P 500 (F) 4,363.55 +17.83 (+0.41%)
- Dow Jones 34,416.99 +102.32 (+0.30%)
- DAX 14,973.33 −221.16 (−1.46%)
- FTSE 100 6,995.87 −81.23 (−1.15%)
- USD Index 94.21 +0.23 (+0.25%)
Important events for today:
- Switzerland Unemployment Rate (m/m) at 08:45 (GMT+3);
- German Industrial Production (m/m) at 09:00 (GMT+3);
- Publication of the Eurozone ECB Account of Monetary Policy Meeting at 14:30 (GMT+3);
- US Initial Jobless Claims (w/w) at 15:30 (GMT+3)
- Canada Ivey PMI (m/m) at 17:00 (GMT+3);
- US Natural Gas Storage (w/w) at 17:30 (GMT+3);
- Canada BoC Gov Tiff Macklem’s Speech at 19:00 (GMT+3).
