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.