U.S. Markets Move Down Slowly; CPI Rises 5.4% YoY

U.S markets slowly moved down after a mixed opening, fueled by a 5.4% YoY increase in the consumer price index (CPI) due to supply disruptions. Crude oil is trading calm above the important resistance level around 82.5, after its rally to a 7-years high.

The S&P 500 fell for the fourth day after a small gap-up opening, while the 10-year Treasury yield slipped below 1.55%, The lower rates cooled off the pressure on tech shares, helping the NASDAQ100 to trade in the green.

  • Stoxx Europe is up by 0.77%
  • Dow Jones is down by 0.48%
  • NASDAQ is up by 0.40%

Apple likely to Cut iPhone Production Due to Chip Shortage

US tech giant Apple is the latest one to take a hit due to chip shortage as it may cut the projected iPhone 13 production targets for 2021 by nearly 1 crore units to 8 crores. The company was expecting to produce 9 crore new iPhones from October to December of 2021, but Broadcom and Texas Instruments are struggling to deliver enough components for manufacturing. Over the past few days, Indian automakers were commenting that the chip crisis is cooling off. Let’s keep an eye on what’s happening in the coming days, as the Indian auto sector is having a bull run this week.

U.S Inflation Increases to 5.4% YoY in Sept

The Labor Department announced that the U.S consumer price index rose 5.4% in September from a year ago period and a 0.4% increase compared to August. The core inflation (excluding the volatile food and energy categories) rose 0.2% in September and 4% compared to a year ago. Powell and the White House have blamed supply chain disruptions for the high inflation.

China Coal Prices Hit Fresh Record Highs

China’s thermal coal prices on Wednesday rose to fresh record highs as recent floods affected major coal production plants. The country has already taken a range of steps to boost coal production and manage electricity demand at industrial plants, while power producers and other coal users have been increasing imports.

Hong Kong Suspends Stock Trading Due to Typhoon Kompasu

Hong Kong canceled its $6.3 trillion stock market trading on Wednesday as strong winds and rain from typhoon Kompasu affected the financial hub. Hong Kong Exchanges and Clearing suspended securities trading, including the Hong Kong-China stock connect and derivatives markets, on Wednesday after Kompasu affected after-hours trading on Tuesday.

Can’t Blame Climate Policies for the Energy Crisis: IEA 

International Energy Agency (IEA) said that government climate policies and the transition away from fossil fuels are not the reasons for the energy crisis in Europe and Asia. The rise in natural gas and oil prices is more a result of the economic recovery from the Covid-19 pandemic, which is boosted by a series of supply disruptions, long winter in Europe, and the drought in Brazil.

Hollywood Union To Walk Out on October 18

The International Alliance of Theatrical Stage Employees (IATSE), which represents thousands of art directors, camera operators, and editors, set October 18 as the strike date due to a dispute over pay and work conditions. This move will increase the pressure on studios, which are already struggling to shoot movies and shows due to pandemic restrictions. Both Netflix and Walt Disney are currently facing a weaker-than-expected growth in online subscriptions due to the challenges of getting new programming.