June 12, 2024

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Stay on top of Monday’s top 5 market news from Investing.com

© Reuters.

By Jeffrey Smith and Anna Beatrice Bartolo

Investing.com – The Covid-19 CPI report has been postponed. China’s economy slowed more sharply in the third quarter than expected, with the industry in particular ending the quarter on a weak indicator. US industrial production data for September will be released later. British bonds fell as the Bank of England gave its clearest warning of an impending interest rate hike, while the European Central Bank raised eyebrows at signs of rising price expectations. It was close to a historic record.

Here’s what you need to know about the financial markets on Monday, October 18.

1. The final stages of the Covid’s CPI

The reading of the final CPI Covid report has been postponed to Wednesday, 20th, due to disagreements between committee members and text leaks over the weekend. The vote on the opinion has also been postponed to next week.

Senators from the Group of Seven major industrialized nations, which comprise the majority of party members and have no connection to the government, are deadlocked over the inclusion of the indictment of President Jair Bolsonaro of genocide of the indigenous population and also on the impeachment of Senator Flavio Bolsonaro (Patriota-RJ). ) for the “management call,” in other words, to nurture private interest to take the president of Need Medicines to a meeting at the BNDES.

The report should mention President Bolsonaro in at least 11 crimes, including murder by omission. Another 60 names should also be proposed, according to a preliminary version of the text obtained by O Globo, including three ministers and three eldest sons of Jair Bolsonaro.

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Last Friday, the 15th, Senator Flavio Bolsonaro issued a memo categorizing the opinion as a “hallucination” and that the CPI would be a “political piece to please the Labor Party and try to tire the president in the 2022 election.”

2. Slowing growth in China

China’s economy slowed more than expected in the third quarter as a wave of Covid-related lockdowns disrupted activity in key sectors and China Evergrande Group (HK 🙂 (OTC 🙂 and other highly indebted home builders made it difficult.

Annual growth slowed to just 4.9% from 7.9% in the three months to June as slumping home sales and tighter credit conditions hit properties and pollution regulations forced a broader shutdown of the energy-intensive industry. Meanwhile, the blockade has dented retail sales, despite a recovery in September, when measures were lifted.

On a quarterly basis, the economy grew by only 0.2%, less than expected 0.5%, with significant weakness at the end of the quarter due to the deteriorating energy market balance.

3. Bitcoin reaches its highest point

The coin approached all-time highs, reaching $62,634 overnight, buoyed by expectations that the US Securities and Exchange Commission is offering at least two exchange-traded funds an exposure to the digital currency.

Such a measure would immediately expand the access of retail and institutional investors to moves, although it would not immediately affect the adoption of the digital asset as a means of payment, given that both funds are under consideration – backed by Invesco and Proshares – based on Bitcoin futures that It is settled in cash which is actually traded on the Chicago Mercantile Exchange rather than Bitcoin itself.

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The ProShares Bitcoin Strategy ETF (NYSE:) has set Monday as the date for its listing on the New York Stock Exchange, but that doesn’t necessarily mean that trading will start today.

4. US market outlook

US stock markets are likely to open the week with caution, in response to Chinese data and looking ahead to this week’s quarterly earnings spree.

However, the week begins relatively quietly with Albertson’s chain of supermarkets and banks State Street (NYSE 🙂 and Zions (NASDAQ 🙂 (SA 🙂 top the company’s report shortlist. Overnight, Dutch Philips medical devices became the latest company to lower its guidance level due to semiconductor shortages and transportation issues.

Almanac data, however, has only NAHB and SEP.

At 8:18 a.m., futures were down 0.25%, while 100 futures and futures were down 0.29% and 0.26%, respectively.

5. Bailey refers to a short-term BOE rate increase

The European interest rate futures market contracted after the governor of the Bank of Italy – who is not one of the most aggressive members of the European Central Bank – admitted that inflation expectations were higher than the ECB would have liked.

Euro short-term interest rate futures rose amid comments on growing speculation that the European Central Bank will have to reluctantly follow other central banks to begin removing stimulus.

There was more action on UK interest rates after Bank of England Governor Andrew Bailey gave his clearest warning yet about an impending rate hike. Bailey told an audience of central bankers that the bank “will have to act” to ensure that “inflation expectations do not fall below the fulcrum”. Interest rate sensitivity increased by 13 basis points, while government bond yields increased 7 basis points to 1.17%.

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