Global Markets fall as Bond Yields Shoot up

In what seems like news from half a year ago, markets across the world moved down as bond yields moved up.

The rise in bond yields across the world is seen as a reaction to an expectation that the U.S. will be forced to increase interest rates by March. Goldman Sachs’ trading revenue put pressure on the banking industry, while gaming studio behind Call of Duty and CandyCrush Activision Blizzard shot up 30% after Microsoft announced a $68.7 billion deal to buy it.

SGX NIFTY currently trades at 18,145.00, up 32 points.

  • Stoxx Europe is down by 1.01%
  • Dow Jones is down by 1.58%
  • NASDAQ is down by 1.72%

Oil Prices Reach Highest Since 2014 after UAE Attack

As a primary reaction to yesterday’s terrorist attack on Abu Dhabi, global oil prices gave a breakout to their highest prices since late 2014. Oil traders are paying higher for cargoes in Asia, as supplies are also down after outages from Libya to North America.

In between other indicators, Goldman Sachs has raised its Brent forecasts to $100/barrel, up a further 20% in the third quarter of 2022. Petrol prices in India have been unchanged lately funnily, ahead of the UP Polls in Feb 2022.

Microsoft Buys Activision Blizzard in $69 Billion Game Deal

Microsoft Corp. agreed to buy Activision Blizzard Inc. in a $68.7 billion deal, uniting two of the biggest forces in video games to create the world’s third-biggest gaming company.

In its largest purchase ever, Microsoft will pay $95 a share in cash for one of the most legendary gaming publishers, known for titles like Call of Duty and World of Warcraft but which is also grappling with a cultural upheaval over its treatment of women. 

Israel Extends Help to UAE After Houthis Attack on Abu Dhabi

After months of heightening tensions between the UAE and Houthis, the terrorist group attacked the biggest UAE Emirate yesterday. Now, Israel has offered security and intelligence support to the United Arab Emirates after the drone attack indicating more tensions in the area.

“We stand ready to offer you security and intelligence support in order to help you protect your citizens from similar attacks,” Israeli Prime Minister said in a letter to Abu Dhabi’s Crown Prince. The attack came after the Houthis warned Abu Dhabi against strengthening an airstrike campaign against them. 

Diamond Mining Giant Sharply Increases Prices

De Beers, the world’s largest diamond miner, has raised prices by about 8%. The diamond and jewellery sector has come out with gains after the Covid-19 pandemic increased demand and cut down supplies.

Consumer demand for diamond jewellery is said to have grown strongly last year. At the first big sale of the year, the prices of larger stones rose by about 5%, while some smaller rough diamonds saw price hikes of nearly 20%. Do watch out for stocks related to the sector in our markets in the upcoming days. 

Chinese Central Bank Trying to Stabilise Economy after Evergrande

After yesterday’s surprise interest rate cut, the Chinese Central Bank said that they will aggressively use ‘economic tools’ to stabilise the economy. Currently, the Chinese economy has been hit by a property slowdown due to the Evergrande issue and signs of stress in the banking industry.

Deputy Governor Liu Guoqiang said today that he will “avoid a collapse in credit”, showing that the second-largest economy in the world is in more trouble than earlier thought.