U.S. Markets Reach All-Time Highs; Earnings in Focus
Benchmark indices in the U.S market reached more all-time highs, with European markets reaching their record levels. Markets around the world are being boosted by corporate earnings and high liquidity in the economies around the world.
The S&P 500 and Dow Jones hit intraday record highs with United Parcel Service and General Electric gaining after strong quarterly results. NASDAQ is 0.3% away from its all-time high. Facebook fell after a revenue miss on their results. Big names in the U.S. market including Twitter, Alphabet, and Microsoft are reporting earnings after the market closes on Tuesday.
- Stoxx Europe is up by 0.67%
- Dow Jones is up by 0.37%
- NASDAQ is up by 0.86%
Japan Panel To Discuss Stimulus Package Blueprint In Early November
Japan’s economy minister said on Tuesday a panel led by Japanese Prime Minister Fumio Kishida will discuss a proposal for a stimulus package in early November, aimed at neutralizing the economic impact of the coronavirus pandemic. The proposal will consider long-term policy priorities such as building more supply chains, promoting innovation, and distributing wealth to low-income households.
Germany Slashes 2021 Economic Growth Forecast
Multiple media reports say that the German government has cut its GDP growth forecast for this year to 2.6%, down from the April prediction of 3.5%. At the same time, they lifted its estimate for next year to 4.1% from the previous prediction of 3.6% made in April. Similar to all other countries, supply chain disruptions are affecting Germany also, but the government expects the economy to normalize in 2023 with an expansion rate of 1.6%.
Singapore To Open Travel Lanes For Australia, Switzerland
The Civil Aviation Authority of Singapore said on Tuesday that it will allow people coming from Australia and Switzerland to enter starting from November 8 without any quarantine. The authority said that only fully vaccinated travelers will be able to enter Singapore freely after taking Covid-19 polymerase chain reaction tests, through the vaccinated travel lane-VTL. The daily quota for people arriving in-country via the VTL will be increased by 1,000 to 4,000 in total.
Cathie Woods tells Elon Musk that Technology will Ease Inflation
Ace investor Cathie Wood said in a response to Elon Musk said that new technologies will help beat the curve on inflation despite recent supply-chain bottlenecks related to Covid-19 and oil supply constraints.
Artificial intelligence, electric vehicles, robotics, genomic sequencing, and blockchain technology are among phenomena that will help moderate price pressures, the Ark Investment Management founder said in a reply to a tweet by Elon Musk about “strong” short-term inflationary pressure.
HSBC Upgrades China Stocks To Overweight
HSBC Holdings on Tuesday upgraded the view on Chinese stocks to overweight, saying that issues such as stronger U.S. dollar, slow growth are already featured in. Beijing’s crackdown on private enterprise and tech war have made the dilemma that ‘the country is uninvestable’ and investors are having a too bearish view, HSBC said. The investment bank expects that the government has targeted measures to ensure growth and the market is ready for a rebound.
China Urges Evergrande’s Hui to Pay Debt With His Own Wealth
Chinese authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s deepening debt crisis, according to people familiar with the matter. Beijing’s directive to the Evergrande founder came after his company missed an initial Sept. 23 deadline for a coupon payment on a dollar bond, said the people, asking not to be identified discussing a private matter. Local governments across China are monitoring Evergrande’s bank accounts to ensure company cash is used to complete unfinished housing projects and not diverted to pay creditors, the people said.