28 Sep 2022

Last night, the three major U.S. stock indexes fluctuated lower. As of the close, the Dow fell 0.43%, the Nasdaq rose 0.25%, and the S&P fell 0.21%. The yield on the 10-year U.S. Treasury bond rose 0.484% to close at 3.947%, a difference of about -34 basis points compared with the yield on the two-year Treasury bond. The VIX, the fear gauge, rose 1.05%. Brent crude closed up 2.22%. Spot gold closed up 0.41% at $1,629.49 an ounce. The dollar index remained high, closing at 114.16.

U.S. durable goods orders recorded a monthly rate of -0.2% in August, the largest decline since February 2022. In August, orders for core capital goods to U.S. factories rose by the most since the start of the year, suggesting that even amid rising interest rates, business demand for business equipment has remained stable. Bullard said that the United States faces serious inflation problems, there is a risk of recession, the credibility of the Fed's inflation target is at risk, and the policy rate may peak at around 4.5%, with more rate hikes at future meetings.

The U.S. Conference Board Consumer Confidence Index for September was 108, expected to be 140.5, and the previous value of 103.2. Consumer confidence improved for a second straight month in September, supported in particular by lower employment, wages and gasoline prices, and the Conference Board's senior director of economic indicators, Lynn Franco, said the current situation index rose again after falling from April to July. Expectations are also up from their summer lows, but recession risks remain. Concerns about inflation dissipated further in September, largely due to a drop in gasoline prices, which are now at their lowest levels since the start of the year.

The total number of new home sales in the United States in August was an annualized 685,000, compared with an expected 500,000, and the previous value of 511,000. That's in stark contrast to some of the latest comments from home builders. Some argue that since canceled orders are not included in the figure, the number overstates true completed sales.

Russia is likely to propose OPEC+ production cuts by around 1 million bpd at its next meeting, according to sources. The North Stream operating company confirmed that the natural gas pipeline was damaged and repairs may take months. Swedish TV reported that a strong underwater explosion occurred in the area where the Nord Stream natural gas pipeline leaked. Separately, traders ramped up bets on a rate hike by the Bank of England, with the key rate expected to rise to 6.25% by May next year and currently priced at a 390 basis point hike by May next year.

The results of the "referendum" in Donetsk, Luhansk, Zaporozhye and Kherson were announced on the 27th local time. The approval rates for "joining Russia" were 99.23%, 98.42%, 93.11% and 87.05%. Ukraine's presidential adviser, Podoljak, said Ukraine would move forward with plans to retake occupied territories from Russia, despite Russia's nuclear threat and a Moscow-promoted referendum.

Apple rose 0.66% on the verge of an agreement to allow the Web3 startup to sell NFTs through its App Store.

Amazon, down 0.64%, will hold Global Promotion Day twice in a year for the first time, with the second scheduled for October 11-12.

Tesla rose 2.51%, and the Fremont Gigafactory’s third-quarter output and delivery may hit a new high. Some Tesla analysts predict that the potential delivery volume in Q3 is about 366,000 vehicles.

Meta fell 1.44% and will set up its first own game studio in Finland. Game development is still in the early stage; RBC said that the improvement in targeted advertising will offset the negative impact of Reels, giving Meta an “outperform” rating.

Southeast Asian ride-hailing and delivery giant Grab fell 3.2% and expects revenue to grow 45%-55% in 2023, aiming to break even on adjusted EBITDA in the second half of 2024.

Starbucks fell 0.62%. On the morning of September 27, it opened its 1,000th store in Shanghai and will open on September 30. This is also Starbucks' 6,000th store in mainland China.

Sources from: Investing.com; Reuters.com

Louis Yap

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