U.S. Markets start the week in red; Bonds Move Up

Equities around the world, including in the U.S. moved down with fresh economic data and the fast spread of the delta variant caused concern that the economies are not keeping up with the market rally. Treasury bonds climbed.

Markets were at their all-time highs on Friday, and this could be a small correction move. China’s economy showed lower than expected growth.

Stoxx Europe is down 0.60%

Dow Jones is down by 0.23%

NASDAQ is down by 0.86%

HSBC Holdings Agree To Acquire Axa’s Singapore Assets For $575 Million

British investment bank HSBC Holdings has agreed to acquire French insurer Axa’s Singapore assets for $575 million(Rs 4,265 crores). This is a part of the company’s plan to scale up its wealth-management business in Asia to raise fee income. HSBC expects the combined unit would be the seventh-largest life insurer and the fourth-largest retail health insurer in Singapore.

Will Need $30 Billion More To Fight Covid: Thailand Central Bank Governor 

Bank Of Thailand’s governor said an additional $30 billion(Rs 2,22,570 crores) in government spending will be required to counteract the effect of the Covid pandemic. The governor also said the current economic hit from the pandemic is greater than from the Asian financial crisis in 1997 and the government can fund additional spending by borrowing more.

Hong Kong Tightens Travel Curbs For Residents Returning From 16 Countries

According to the latest reports, Hong Kong has tightened its travel curbs for residents returning from 16 countries and the list includes the U.S., France, and Spain. The new restrictions will take effect starting August 20 and this change is just two months after the country started easing quarantine measures. The reversal is due to the rise in Covid Delta cases in major countries. 

Singapore Property Market Rises Again 

Singapore property market rises up as home sales rebound after the easing of Covid restrictions. According to the data from Urban Redevelopment Authority, purchases of new private units rocketed 82% to 1,589 in July against 872 units in June. This is the second-highest purchase compared to 1633 in January. 

Malaysian PM Muhyiddin Yassin Resigns

Malaysian Prime Minister Muhyiddin Yassin and his cabinet resigned after they failed to get majority support. Muhyiddin has been in power for more than 17 months and resigned as the shortest-ruling leader. He will continue as caretaker PM until a successor is found.

Oil Falls and Recovers  after China Economic Data

Crude oil prices in the U.S moved down for the 3rd straight day after Chinese economic data showed the economic recovery in the country was slowing down. Concerns of fall in global demand for crude pulled down the commodity.

West Texas Intermediate(WTI) Crude futures in New York were down 3.5% at one point but now have gained back. $65/barrel looks like a good support for the commodity which is now trading at $67.70/barrel.

Biden to speak on the Afghan Situation Today

U.S. President Joe Biden will return to the White House from the President’s vacation house at Camp David on Monday. He is expected to address his nation about the crisis in Afghanistan, where Taliban terrorists took hold of the capital of Kabul.

Biden will speak soon from the White House, where just 5 days ago he said he did not regret his decision to withdraw U.S. troops from the country. Disturbing footage of civilians running for cover as the final U.S. military aircraft left the country have been shaking countries around the world. Markets do not like instability, let us see if we may see a reaction.