US Session (10/27/2021)
Stocks in the US fell from all-time highs, with small-company shares leading the way below, while Treasuries rose in response to an increase in growth fears.
The S&P 500 and Dow Jones industrial average dropped after setting closing records Tuesday. The tech-heavy Nasdaq 100 established an intraday high before narrowly breaking even, with Alphabet, Amazon.com and Tesla rising.
After missing revenue forecasts, Robinhood Markets saw its stock plummet. The Russell 2000 index fell by 1.9%, the biggest drop since late September.
Prior to the government's auctions of 5-year notes on Wednesday and a 7-year sale on Thursday, long bonds continued to outperform shorter-maturity US debt. The yield spread between 5-year and 30-year bonds has shrunk to 78 basis points, the lowest since March 2020.
Mining and energy stocks led the Stoxx Europe 600 index lower as raw material prices, such as aluminum and iron ore, fell with crude oil prices. Germany's Dax fell as Europe's largest economy lowered its growth outlook for 2021, citing the pandemic's lingering effects and a supply shortage.
Investors are relying on earnings to support equity prices, the reporting season has been good so far. However, concerns linger that rising raw material and wage prices, as well as supply-chain snarls, will pinch profits and slow the global economy's recovery.
The debt issue in China's property sector continues to loom over the market, with officials telling billionaire hui ka yan that he should utilize his personal riches to help China Evergrande. Meanwhile, a top Chinese regulator has urged businesses to make active preparations to fulfill offshore bond payments.
Bitcoin has dropped below $60,000 for the first time. On the virus front, the Pfizer and Biontech vaccine for young children received approval from an FDA panel.
Asia Session (10/27/2021)
Most Asian stocks fell amid fears that the recovery from the pandemic will be slowed by higher inflation, which forces tighter monetary policy.
A gauge of the dollar ticked up.
Shares fell in Japan and China, fluctuated in Hong Kong, and rose in South Korea, where Samsung Electronics Co.'s third-quarter profit surpassed expectations.
US futures rose after the tech-heavy Nasdaq 100 set an intraday record and the S&P 500 fell but remained close to all-time highs.
Ten-year and 30-year US treasuries pared gains. This week, sovereign-yield curves flattened, adding to signs of growth concerns as price pressures fueled by an energy shortage and supply-chain snarls push central banks to reduce accommodation.
Australia's April 2024 security fell after the country's central bank decided not to defend the bond-yield target.
Commodities including aluminum, iron ore, and crude oil dropped.
Officials in China intend to set a price cap on a key coal commodity. The risks posed by the country's property market slowdown and a crackdown on private enterprise are also under consideration.
Europe Session (10/27/2021)
US futures fluctuated, while European stocks fell from near-record highs on Wednesday, owing to mixed earnings announcements, a drop in commodity prices, and fresh fears about economic growth. bonds gained.
Futures contracts for the S&P 500 and the Nasdaq 100 were slightly moved. McDonald's surged in pre-market trade after-sales above analysts' expectations, while Coca-Cola soared after raising earnings forecasts. Following the close of the market on Tuesday, Microsoft and Twitter gained over 2% on positive news.
Mining and energy firms led the decline in the Stoxx Europe 600 index, as raw material prices, including aluminium and iron ore, fell with crude oil. Germany's Dax fell as Europe's largest economy lowered its growth projection for 2021, citing the pandemic's lingering impact and a supply bottleneck. Bund yields have fallen in line with those of other European bonds.
UK Finance Min. Sunak: A 1-percentage-point rise in inflation and interest rates will cost us about $23 billion.
Iran is ready for direct negotiations with European participants to the 2015 nuclear deal, according to state television.
The billionaire's tax would apply a capital gains rate of 23.8% on tradable assets such as stocks - aides
China has agreed to a plan to establish a price restriction on thermal coal sales.
China's Foreign Ministry's Zhao: Recent US efforts on Taiwan may pose great risks.
Fitch Ratings: China is projected to accelerate infrastructure fixed-asset investment in 4Q 21 to compensate for lower property developer investment.
China's NDRC on Tuesday, instructed developers to pay all debts, including those incurred abroad.
Thursday FX Options Expiries
USD/BRL: 5.5000 ($396M), 5.4000 ($373M), 5.6000 ($300M)
USD/JPY: 113.00 ($1.47B), 113.75 ($980M), 113.70 ($735M)
EUR/USD: 1.1610 (EU915.6M), 1.1600 (EU665.2M), 1.1500 (EU577.6M)
USD/CAD: 1.2375 ($1.19B), 1.2660 ($970M), 1.2300 ($483M)
AUD/USD: 0.6500 (AUD1.38B), 0.7475 (AUD1.02B), 0.7375 (AUD654.8M)
USD/CNY: 6.3900 ($805M), 6.4570 ($500M)
USD/KRW: 1173.00 ($480M)