Rally in Global Markets Continue to second day
Dip buyers continued to buy up stocks after the discount sale from last week. Equities rose as data showed economic strength along with a lower threat of the omicron coronavirus variant.
The S&P 500 gained for a second straight day. Pfizer climbed after U.S. regulators gave emergency authorization to a Covid-19 pill for people at high risk of severe complications. Tesla rallied as Elon Musk said he has sold off enough shares to reach a target of reducing his stake in the electric-car giant by 10%.
SGX NIFTY currently trades at 17,088.50, up 110 points.
- Stoxx Europe is up by 0.77%
- Dow Jones is up by 0.62%
- NASDAQ is up by 0.40%
Thailand Central Bank Keeps Interest Rate Unchanged
The Central Bank of Thailand’s Rate Setting Committee on Wednesday kept the one-day bond repurchase rate at the record-low 0.5%. The bank also cut its 2022 gross domestic product growth forecast to 3.4%, from previously 3.9%. But they raised this year’s growth outlook to 0.9% from 0.7%. They also said that the omicron outbreak would affect the economy in early 2022.
Used-Car Retailer Stocks Jumps On Record Revenue
American Used-car retailer companies CarMax and Carvana surged on Wednesday after reporting strong quarterly revenue. Customers had to wait for a longer period for new cars, due to global chip shortage and supply chain issues. As a result of this people started considering second-hand vehicles and more and more used vehicles were sold at higher prices due to the rising demand. Average selling prices for both retail and wholesale increased by about 31% and 58% during 2021. You can read the article about ‘CarTrade Tech Limited’ (a similar Indian company in this segment), which was published during its IPO here.
Omicron Has 80% Lower Risk of Hospitalization, Study Says
According to a study by the National Institute for Communicable Diseases, South Africa, 80% of the infections caused by Omicron are less likely to get hospitalized compared to other variants. Compared to the delta cases, Omicron infections are associated with a 70% lower risk of severe disease. The study also said that fewer hospitalizations may be due to higher population immunity in November compared to earlier in the year.
Japan Plans Record Annual Budget For Next Year
Nikkei newspaper reported on Wednesday that Japan Prime Minister Fumio Kishida is planning for another record budget this week. The budget for the year starting in April 2022 will be raised to 107.6 trillion yen (Rs 71 lakh crores), around 0.9% up from the initial spending plan for last year. Income from taxes is expected to rise to a record of 65.2 trillion yen. Looking into the Covid data, Japan has registered less than 70 omicron cases as of last weekend, giving more confidence to the economy. The official announcement is expected later this week.