Morning Bid: Full of energy | Whuff News

A look at the day ahead in US and global markets from Mike Dolan.

Global stocks are not going to lie down, clinging to the hope that central banks will ease off the policy brakes or that China can ease its COVID curbs, just as energy firms are reaping huge windfall profits.

Heading into the dire month ahead of 2022, equity indices are not looking to deliver anywhere near the 10% rebound since Oct. 13 (.MIWD00000PUS). Everything from central bank speculation, massive swings in equity sectors and talk of the US election season are all accounted for.

And after a rough start to the week, stocks bounced back on Tuesday — even on some positive logic.

Inactive Hong Kong and Chinese stocks rose late in the afternoon, closing up 5%, after media talk that China was planning to reopen from strict COVID measures in March. The reports were dismissed by officials.

The spark was also enough to see the Chinese Yuan jump near a 15-year low against the dollar.

The hope comes as the US Federal Reserve begins its two-day policy meeting amid hopes it could signal a slowdown in inflation next month.

The Reserve Bank of Australia underscored those hopes on Tuesday by reducing its tightening rate to a quarter after a half-year increase earlier – following the Bank of Canada’s move to reduce the size of its rate hikes last week.

US stock futures were higher, with Treasury yields and the US dollar on the back foot.

Europe’s decline was less certain. After Monday’s news that euro zone inflation rose to a record 10.7% in October, European Central Bank chief Christine Lagarde said the ECB should continue to raise interest rates to fight inflation, even if the euro’s weakness worsens. .

Energy sector revenues show clear winners from the year’s Ukraine-related price shock.

BP doubled its third-quarter profit from a year earlier to $8.15 billion, lifted by strong natural gas trading, as it increased its share buyback by $2.5 billion amid growing calls for a windfall tax hike in the sector.

US President Joe Biden on Monday called on the big oil companies that bring huge profits to stop “profiteering from war”, threatening to hit them with high taxes if they do not increase production.

Key developments that should give further direction to US markets later on Tuesday:

* US Federal Reserve begins two-day meeting; Bank of Canada Governor Tiff Macklem addresses parliament

* US Oct manufacturing survey from ISM and S&P Global; Sept US JOLTS job opening data; Dallas Fed Oct services index

* Earnings of US companies: AIG, AMD, Marathon, Pfizer, Eli Lilly, Edison, Clorox, Prudential Financial, Molson Coors, Fox etc.

Reuters Reuters Graphics
Reuters graphics
Reuters graphics
Reuters graphics

By Mike Dolan, editing by Ed Osmond, Twitter: @reutersMikeD

Our standards: The Thomson Reuters Trust Principles.

The opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust’s Principles, is committed to integrity, independence, and freedom of impartiality.

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