US Session (10/15/2021)
Solid corporate profits and a surprising uptick in retail sales fueled a surge in firms that are more likely to benefit from an economic rebound, giving stocks their best week since July. Treasuries fell.
Even after data showed that consumer sentiment fell in early October, equities moved higher. Gains in the S&P 500 were driven by retailers, banks, and industrial shares. Goldman Sachs gained after reporting a boost in its trading division, while Charles Schwab soared after reporting record earnings. J.B. Hunt Transport Services and Alcoa, the largest aluminum manufacturer in the US, both jumped on better-than-expected results.
Goldman Sachs CEO Solomon stated that inflation, particularly wage inflation, is still a major concern for CEOs and shareholders. Other CEOs, like Bank of America's Moynihan and Morgan Stanley's Gorman, have expressed similar concerns this week.
Energy shortages drove more output cuts, putting pressure on manufacturers and increasing inflation fears. The world's most crucial metals continued to rise at a blistering pace. Brent oil was hovering at $85 a barrel, marking the latest milestone in a global power shortage that has seen prices rise. Bitcoin reached $60k.
Asia Session (10/17/2021)
Most Asian equities and US futures fell as rising oil costs fueled inflation fears, pushing bond rates higher.
MSCI's Asia Pacific share index was set to fall for the first time in four sessions, as stocks in Japan, Hong Kong, and China fell.
US futures fell as American equities rose on Friday, with the S&P 500 having its best week since July as results boosted confidence.
Bond rates in New Zealand and Australia have risen after New Zealand's inflation has surged to its highest rate in ten years.
The yield on Australia's three-year bond increased by as much as 18 basis points, reaching its highest level since January.
Treasury rates continued to rise, while the dollar rose.
Energy prices continued to rise, with WTI crude oil reaching a high of more than $83 a barrel for the first time since 2014. Brent has surpassed $85 per barrel, the highest level since 2018.
PBoC Governor Yi Gang said that authorities can control the dangers presented to the Chinese economy and financial system from the struggles of the China Evergrande Group.
Europe Session (10/15/2021)
Equity futures in the United States edged higher on Friday, boosted by a strong set of company reports that allayed concerns that an inflationary rise would stifle growth.
S&P 500 contracts rose in pair with Nasdaq 100 contracts. Banks and energy companies led increases in Europe, which are linked to a cyclical resurgence.
Brent oil futures were trading around $85 a barrel, despite an energy shortage that is raising inflationary pressures and raw material costs. At the London Metal Exchange, a measure of six industrial metals reached a new high.
Fears that increasing prices and supply-chain snarls would wreak havoc on company balance sheets and growth have been dampened by strong profits in the reporting season. At the same time, the larger question over whether a stagflationary background is looming remains unresolved.