Aug 19 2021 0
These are still the gloomy days of the market as the pandemic just hit back stronger than ever. Moreover, the chaos around the world just makes it worse for the economy. Yet, we still can turn those into trading signals and make some profits.
- Minutes of the July FOMC meeting were not as hawkish as expected.
- On Tuesday, Boston Fed President Eric Rosengren said that bond buying is not the right policy tool to solve current economic problems, such as supply chain problems. response, and call for immediate reduction in this action.
- U.S. retail sales fell 1.1% in July, more than economists expected, but Industrial Production Numbers showed output at the country's factories rose sharply in July.
- The NZD is also a currency with high volatility after their Central Bank (RBNZ) unexpectedly left interest rates unchanged, which is considered an extremely rapid change when the market has highly valued the increase in interest rates. interest rate of 0.25% at this meeting. The cause is believed to come from New Zealand falling into lockdown after the first COVID-19 infection in 6 months.
- Iran has nearly doubled its enrichment capacity dedicated to refining uranium close to levels needed for nuclear weapons, signaling that it will not de-escalate its nuclear activities.
President Joe Biden said chaos in Afghanistan was inevitable after the US withdrawal from the country, while US intelligence reports did not foresee such a rapid collapse of the Afghan military, according to experts. Pentagon leadership. Meanwhile, the International Monetary Fund said the new government in Afghanistan was cut off access to the fund's reserve assets and other resources days before the country was expected to receive nearly $500 million. And what happened when the Afghan president fled the country after the Taliban entered Kabul? The United Arab Emirates said that Ashraf Ghani and his family were in the Persian Gulf country "for humanitarian reasons". The Russian earlier claimed he left Afghanistan with four cars and a helicopter full of cash.
Government-backed investors will refinance China Huarong after the bad debt manager reported a record $15.9 billion loss, ending months of speculation over whether Beijing considers the financial giant is too big to fail or not. The rescue package shows that the current President Xi Jinping's government does not want to let one of China's most important state-owned companies go bankrupt. Elsewhere in China, Xi Jinping has turned his attention to the country's wealthiest citizens, outlining a "common prosperity" that includes the regulation of income and the redistribution of wealth. Tencent warned investors to prepare for more restrictive measures on China's tech sector. Looks like some are finally starting to give up on Chinese tech stocks.
Asian stocks are set to fall after a slide on Wall Street was sparked by Federal Reserve minutes, suggesting officials could start cutting back on stimulus measures from the end of the year. . Futures markets in Japan and Australia were lower, but stable in Hong Kong. U.S. stock futures fluctuated after the S&P 500 and Nasdaq 100 indexes fell for a second day. Most Fed officials agreed last month that they could begin to slow down their bond purchases later this year with progress being made on inflation and employment targets. Treasury bonds and the dollar were little changed. Crude oil in New York fell to its lowest level since May after gasoline inventories in the United States rose unexpectedly.
The start-up boom
The IPO market in India is going crazy. The amount raised in IPOs this year has reached $8.8 billion, surpassing the total of the past three years even though it is only August. At the current rate, 2021 will surpass all records. era is 11.8 billion USD. Founders, bankers, attorneys, and advisors are racing to cash in on hot demand for new offerings. India's success with startups has long lagged that of the US or China. But this year there was something groundbreaking. With the Covid-19 pandemic, many consumers have turned to online services, from grocery delivery to medical diagnosis. Revenue has skyrocketed.
More than three decades ago, Zhang Congyuan converted a pig farm next to rice fields into a sports shoe company, Huali, in western Taiwan. Today, the founder of Huali is worth more than $13 billion. Huali, which includes customers like Nike, Converse and Vans, produces more than 180 million pairs of shoes a year. Shares of Huali have surged 162% since listing in Shenzhen in April, putting Zhang, who owns 87% of the company with his family, to the top of the island's rich list. He is now richer than more famous names like Terry Gou of Foxconn Technology Group, the company that makes iPhones for Apple.