1. Markets Move up After Jobs Data
Markets reacted positively with the S&P 500 climbing for a seventh straight day. Data is showing that U.S. job growth increased the most in 10 months adding nearly 8.5 lakh jobs. Unemployment data is also looking positive to economists and market participants.
Jason Pride, chief investment officer of private wealth at Glenmede: said “Today’s report likely does not significantly change the Fed’s calculus here, as the U.S. labour market is far from its ‘full employment’.”
Stoxx Europe is up by 0.21%
Dow Jones is up by 0.13%
NASDAQ is up 0.32%
2. OPEC’s Crude oil output increased in June to as demand recovers
OPEC+ reported boosted oil production in June, as demand also recovered from economies opening up.
A Bloomberg survey has shown that production rose by 8,55,000 barrels a day in June to 26.47 million a day, with just over half the increase coming from group leader Saudi Arabia.
This was also the month when oil prices hit multi-year highs. This is a sign of high demand in the markets, and possibility that the high prices might sustain.
3. Japan Pension Fund Books $339 Billion Profits in FY21
Japan’s Government Pension Investment Fund booked a 25% profit on its investments of $339 billion(~Rs 25.26 lakh crores) between April 2020 and March 2021. It was the highest profit number since the fund started managing pension reserves in 2001.
Overseas stocks gave a return of 59.4%, while domestic stocks gave 41.6%. The funds President said it was a historically high number boosted by the equity market rally and that he does not expect it this year.
4. Didi Shares Fall after China Starts Review
Didi shares fell 7% as China’s crackdown on its biggest corporations continued. The country has started a cybersecurity review of the ride-hailing company. This comes just 2 days after the biggest public listing in the U.S. market in the last decade.
Fun fact – Didi was the company that forced Uber to get out of China with a buyout, but Uber gained $8 Billion(~Rs 57,000 crores) from the IPO from Didi shares.
5. Norway’s $1.4 Trillion Fund warns of Climate Change Effect
Norway’s sovereign wealth fund worth more than Rs 100 lakh crores has sounded its caution that its investments might take a hit as climate change targets hit. “We should be careful about making major changes to the principles underlying the fund’s investment strategy,” Norges Bank Governor Oystein Olsen and wealth fund’s Deputy CEO Trond Grande said in a letter to the Finance Ministry.
Norway, which is western Europe’s biggest oil and gas producer, has transferred most profits to this wealth fund and reinvested it overseas.
6. Ant Group-Backed Kakao Pay Seeks Up to $1.4 Billion in IPO
South Korea’s largest online payment service with 3.6 crore users, Kakao Pay is looking to raise $1.4 Billion(~Rs 10,000 crores) in its IPO this week. The company is looking to raise this amount at a valuation of $11 Billion(~Rs 80,000 crores) from the public.
It is backed by China’s Ant Group and may set a precedent for PayTM India’s IPO which is coming up soon. “The Covid-19 has fueled transitions to online financial service,” Alex Ryu, CEO of Kakao Pay, said in an interview in May.
7. Glaxo Reaches $2.2 Billion Dementia Drug Deal With Alector
British Pharma major GlaxoSmithKline has agreed to pay U.S-based Alector Inc a $2.2 Billion(~Rs 15,000 crore). This deal is to develop drugs against diseases such as Parkinson’s and Alzheimer’s.
Shares of Alector gained as much as 90% in today’s trade before moving down.
8. London Back Ahead of Amsterdam as Europe’s Trading Capital
London moved back ahead of Amsterdam as Europe’s largest volume share-trading center in June. The English city has claimed the top spot for the first time this year after Brexit pushed down volumes to Amsterdam.
Trading in London is still below pre-Brexit levels. FTSE, the country’s major stock market index, is still 7% under its February 2020 levels.