Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
08:00
The main stock indices in Asia are registering price increases. The Nikkei index rises by 1%, the Hang Seng by 1.1%, the Kospi in Seoul strengthens by 1.4% and the flagship index in Sydney jumps by 2%. The trend is also positive in China, Taiwan and India.
Futures are stable with a slight upward trend this morning. Wall Street closed last night in sharp gains, snapping a 7-day losing streak for the Dow Jones and the S&P 500, which jumped 2% and 1.9% respectively. More than 80% of Nasdaq stocks traded higher and it ended the evening with a jump of 2.05%.
At the same time, bond yields in the US were cut substantially – the 10-year bond yield, which earlier climbed and crossed the 4% mark, plunged by 24 basis points to 3.71%. The two-year bond yield fell by -19 points, to 4.11%. This is the sharpest daily drop in yields since 2009. This morning there is a slight recovery in yields – the 10-year bond yield rises to 3.76% and the two-year bond yield to 4.14%.
Porsche shares will begin trading this morning in Frankfurt after its IPO was completed after raising 9.4 billion euros at a market value of 75 billion euros, making it the fourth-largest carmaker after Tesla, Toyota and Volkswagen. The biggest European IPO in the last decade. The offering was carried out at a share price of $82.5, in the upper range of the prospectus estimates.
At 15:30 Israel time, the final growth data for the US economy in the second quarter will be published. According to the measurements already published, the GDP in the second quarter is expected to decrease by 0.6% (a correction for the better after the initial data indicated a decrease of 0.9%). Also, during the day, preliminary data of the September consumer price indices will be published in Germany and Spain. In Germany, a sharp monthly increase of 1.3% is expected, which will bring the annual inflation to the level of 9.4%, after an increase of 7.9% in August.
Against the background of the change of direction in the markets last night, the Bank of England announced that it will purchase long-term government bonds to stabilize the state capital market, which also resulted in the recovery of the British pound after it plunged to an all-time low this week against the US dollar. The dollar lost ground last night against most currencies, but this morning the euro weakened against it by 0.5% to 96 cents and the pound retreated by 0.7% to $1.08.
Slight declines are recorded in the commodity market after yesterday’s strong gains. American oil contracts jumped by 4.5% (and this morning are trading around $82 per barrel) and Brent oil contracts jumped by 3.5% (and at this time retreat slightly to $88.9 per barrel). At the same time, gold jumped by 2% last night (and is now trading slightly lower around $1,654 per ounce) but still has not covered its weekly loss which was reduced to 1%.