Shares in China Evergrande Group’s electric vehicles (EV) unit rose on Monday as the embattled property developer moved to prioritize the growth of its nascent EV business over its troubled core real estate operations. Evergrande rose as much as 6% during the session before closing down 0.7%. China Evergrande New Energy Vehicle Group Ltd rose 11.4%. The benchmark Heng Seng Index (HSI) was flat.
India and Israel agreed to resume talks on a free trade agreement from November, with the aim of signing a deal by mid-2022, both countries said on Monday. Ties between the two countries have grown closer in the seven years since Indian Prime Minister Narendra Modi has been in power, and a number of strategic, military and technology partnerships have been formed during that time. India aims to sign new trade deals with several countries including Australia, the United Arab Emirates, the United Kingdom, and Canada, to boost exports and help the country recover faster from its coronavirus-induced slowdown.
The major Asian stock markets had a mixed day today:
- NIKKEI 225 decreased 204.44 or -0.71% to 28,600.41
- Shanghai increased 27.26 or 0.76% to 3,609.86
- Hang Seng increased 5.10 points or 0.02% to 26,132.03
- ASX 200 increased 25.50 points or 0.34 to 7,441.00
- Kospi increased 14.38 points or 0.48% to 3,020.54
- SENSEX increased 145.43 points or 0.24% to 60,967.05
- Nifty50 increased 10.50 points or 0.06% to 18,125.40
The major Asian currency markets had a mixed day today:
- AUDUSD increased 0.00290 or 0.39% to 0.74953
- NZDUSD increased 0.00120 or 0.17% to 0.71669
- USDJPY increased 0.19 or 0.17% to 113.69
- USDCNY decreased 0.00060 or -0.01% to 6.38224
- Gold increased 15.69 USD/t oz. or 0.88% to 1,808.17
- Silver increased 0.214 USD/t. oz or 0.88% to 24.524
Some economic news from today:
Coincident Indicator (MoM) decreased from -0.2% to -3.1%
Leading Index decreased from 104.1 to 101.3
Leading Index (MoM) decreased from -0.1% to -2.8%
M2 Money Supply (YoY) (Sep) increased from 6.90% to 8.00%
CPI (YoY) (Sep) increased from 2.4% to 2.5%
The boom in domestic holidays fueled a rebound in Britain’s economy in August as bars, restaurants and festivals benefited from the easing of most remaining Covid restrictions during the height of summer. The Office for National Statistics (ONS) said gross domestic product rose by 0.4% in August compared with the previous month as consumers increased their spending on leisure during the first full month without domestic government restrictions in England. However, the ONS cut its growth estimate for July from a monthly rise of 0.1% to a fall of the same amount after fresh economic data revealed a worse hit for car manufacturing caused by global supply chain problems and shortages in computer chips, also known as semiconductors.
The major Europe stock markets had a mixed day:
- CAC 40 decreased 20.82 points or -0.31% to 6,712.87
- FTSE 100 increased 18.27 points or 0.25% to 7,222.82
- DAX 30 increased 56.25 points or 0.36% to 15,599.23
The major Europe currency markets had a mixed day today:
- EURUSD decreased 0.00320 or -0.27% to 1.16126
- GBPUSD increased 0.00190 or 0.14% to 1.37774
- USDCHF increased 0.00300 or 0.33% to 0.91900
Some economic news from Europe today:
German Business Expectations (Oct) decreased from 97.4 to 95.4
German Current Assessment (Oct) decreased from 100.4 to 100.1
German Ifo Business Climate Index (Oct) decreased from 98.9 to 97.7
Treasury Secretary Janet Yellen stated that she believes Biden’s Build Back Better agenda will not impact inflation as it will be spread out over a decade. Despite inflation growing at its fastest pace in 30 years, Yellen believes it will come down to the 2% target during the second half of 2022. “On a 12-month basis the inflation rate will remain high into next year because of what’s already happened, but I expect improvement by the middle to the end of next year – second half of next year,” Yellen stated.
US companies plan to raise prices on consumer goods to offset their own costs under the assumption that Americans will continually pay more. Nestle, Verizon, and Procter & Gamble are among some of the many companies that will raise prices on products. “We have not seen any material reaction from consumers,” P&G finance chief Andre Schulten stated in reference to already altered prices.
US Market Closings:
- Dow advanced 64.13 points or 0.18% to 35,741.15
- S&P 500 advanced 21.58 points or 0.47% to 4,566.48
- Nasdaq advanced 136.51 points or 0.9% to 15,226.71
- Russell 2000 advanced 21.37 points or 0.93% to 2,312.64
Canada Market Closings:
- TSX Composite advanced 68.69 points or 0.32% to 21,284.84
- TSX 60 advanced 2.7 points or 0.21% to 1,277.24
Brazil Market Closing:
- Bovespa advanced 2,418.37 points or 2.28% to 108,714.55
The oil markets had a green day today:
- Crude Oil increased 0.27 USD/BBL or 0.32% to 84.0300
- Brent increased 0.49 USD/BBL or 0.57% to 86.0200
- Natural gas increased 0.545 USD/MMBtu or 10.32% to 5.8250
- Gasoline increased 0.0347 USD/GAL or 1.40% to 2.5168
- Heating oil increased 0.0259 USD/GAL or 1.02% to 2.5648
The above data was collected around 12:10 EST on Monday
- Top commodity gainers: Natural Gas (10.32%) and Platinum (2.01%), Coffee (1.73%) and Bitumen (2.14%)
- Top commodity losers: Lumber (-0.54%), Methanol (-3.33%), Rubber (-1.95%), and Orange Juice (-1.47%)
The above data was collected around 13:20 EST on Monday
Japan 0.101%(+1.2bp), US 2’s 0.4291% (-0.03%), US 10’s 1.6299%(-0.78bps); US 30’s 2.0819%(
+0.01%), Bunds -0.118% (-2.1bp), France 0.2210% (-2.3bp), Italy 0.9181% (-3.96bp), Turkey 19.77% (+38bp), Greece 1.033% (-0.2bp), Portugal 0.408% (-1.4bp); Spain 0.52% (-1.27bp) and UK Gilts 1.138% (-0.9bp).
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Author: Martin Armstrong
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