U.S. Markets Fall from Early Highs; NASDAQ in Red Again

Stocks in the U.S. market started with a bounce-back but fell later even as bond yields cooled down.

The S&P 500 is now in red near a one-month low, while the Dow Jones index lost early gains. Tech-heavy Nasdaq 100 also crashed down before moving up in the morning. Banking stocks are in the green with the last of the big six banks reporting quarterly results. Morgan Stanley moved up after reporting a rise in equities-trading revenue. 

SGX NIFTY currently trades at 17,970, up 32 points.

  • Stoxx Europe is up by 0.78%
  • Dow Jones is up 0.01%
  • NASDAQ is up by 0.75%

Sony Loses $20 Billion in Market Value After Microsoft’s Activision Deal

Half a world across, shares of Sony crashed 13% in Japan after Microsoft announced the acquisition of Activision. Activision owns popular titles including Call of Duty and the acquisition may see the game being pulled out from the PlayStation console. 

This is challenging Sony’s traditional gaming console business that relies on hardware sales and exclusive games. Sony lacks the financial power to compete with Microsoft in this spending spree.

Have you owned a Sony or Microsoft console? Let us know in the comments below!

U.K. Authority planning to Restrict Crypto Ads to Wealthiest Investors

Crypto assets have been proposed to be changed to “restricted mass marketing investments” by the British watchdog. This means that only high net worth investors can be at the receiving end of promotions for crypto assets. The measure has been proposed in the interest of consumer protection. 

In November, Indian Finance Minister had said that they are monitoring Crypto Ads, but not weighing a ban.

China considering releasing Restrictions on Property Developers

Chinese regulators are looking at lifting restrictions on developers’ access to cash from past sales, in a major step toward helping the industry’s liquidity crunch. 

As a result, there is now a record-breaking rally in Chinese property bonds. This shows the huge funds flowing into the risky securities in expectation of the country lifting restrictions. This might have a rub-off effect on property developer stocks around the world. 

China’s leading LNG importer Floods LNG spot market 

Sinopec, a top Chinese LNG importer has issued a sales tender offering up to 45 cargoes of delivery to ports in North Asia. Usually, a buyer, Sinopec’s surprise move indicates that it is well-stocked and is expected to trigger a bearish sentiment in the LNG spot market.

This comes in between a slowing demand of the LNG spot market as the Asian buyers cut back on purchases. Lower demand and higher supplies indicate a potential; fall in prices.

Oil continues Rally as demand aims for pre-pandemic levels

The International Energy Agency said that demand seemed to still be high despite Omicron and that the global supply surplus is shrinking. With increased demands in Asian countries and the unrest in the Middle East owing to the drone attack in the UAE. The report suggests that stockpiles are below pre-pandemic levels.

Also, a major crude pipeline running from Iraq to Turkey was affected by an explosion on Tuesday, after which Futures in New York exceeded $87/barrel. 

Profits Of BOA And Morgan Stanley Jumps After Demand For Advisory Services

The share of Bank Of America and Morgan Stanley jumped nearly 5% on Wednesday in NYSE after reporting strong Q4 results. Morgan Stanley earned robust fees from managing assets for wealthy clients and the Bank Of America’s results were backed by the growth in demand for advisory services. Morgan Stanley was ranked third in the global investment banking league tables, after Goldman Sachs and JPMorgan.

U.K Inflation Rises Near 30-Year High

According to the Office for National Statistics, the UK’s rate of inflation increased to 5.4% in December 2021 from November’s 5.1%. This is the highest mark since March 1992. The numbers will force the Bank of England to raise interest rates again on February 03, 2022. After increasing the interest rates last month, BoE became the world’s first major central bank to do so, since the beginning of the COVID-19 pandemic.

Canadian Inflation Also Hits A 30-Year High

Canada’s statistics office said on Wednesday that the country’s annual inflation rate rose to 4.8% in December, a 30-year high since the 5.5% acceleration marked in September 1991. This is the ninth consecutive month in which inflation jumps out of the Bank of Canada’s 1% to 3% control range. Analysts strongly believe the central bank will start increasing interest rates next week despite the rising Omicron concerns.