The Fed is still waiting for the Robinhood IPO and other important events that affect the dynamics of assets in the financial markets.
The end of support for the US economy
US central bank officials will soon be able to start reducing massive support for the US economy, although Federal Reserve Chairman Jerome Powell said there is still time. "We are not there yet. And we see that we have every reason to come to this, " he said at a press conference after the Federal Open Market Committee left interest rates in a range close to zero and supported the purchase of assets at the level of $ 120 billion per month. The yield on 10-year Treasury bonds initially rose as investors digested the somewhat hawkish tone of the statement, but declined during Jerome Powell's speech.
Robinhood Markets has priced its initial public offering at the lower end of the market range to raise $ 2.1 billion, a modest achievement of one of the most anticipated listings of 2021. This indicates that investors were in no hurry to buy Robinhood shares, as was the case with some of the hottest IPOs of the year. Robinhood became popular during the coronavirus pandemic, when people took up online trading to pass the time and earn money. The shares will start trading on the Nasdaq today.
AstraZeneca is not to blame
According to the study, the AstraZeneca Covid-19 vaccine does not increase the risk of a rare blood clotting disorder after the second dose is administered. According to data published in the medical journal The Lancet, the estimated incidence of the disease is about 2 people per million vaccinated. This is comparable to the figures found in the unvaccinated population. At the same time, the growing number of delta variant diseases continues to challenge various countries.
Today, the pharmaceutical company AstraZeneca, Credit Suisse and the brewing company AB Inbev report on profits. Also the French giant Carrefour.
MSCI Emerging Markets
China's crackdown on its technology and education sectors has helped push emerging market stocks to a 17-year relative low compared to their counterparts from developed countries. The MSCI Emerging Markets index, which accounts for more than a third of its weight in Chinese companies, fell into negative territory over the year, while the MSCI World index of developed market stocks rose by about 14%. Plus, vaccination rates in developing countries lag behind those in the United States and Europe. This leads to a multi-level recovery of the global economy, with the most developed countries coming to the fore, and emerging market countries falling further behind. The fact that China was outperforming in its economic recovery was an important factor for investing in emerging market stocks. But strict regulatory measures have had a negative impact on the country. Therefore, the dissipating markets remained dependent on the deployment of vaccination and control over the spread of the coronavirus. Only favorable news will help to revive the interest of investors in this asset class.
Here are the main movements in the financial markets today
- S&P 500 futures were almost unchanged. The S&P 500 index remained stable.
- Nasdaq 100 futures lost 0.2%. Nasdaq 100 rose 0.4%
- The Japanese Topix index rose by 0.4%
- Australia's S&P/ASX 200 index rose by 0.5%
- The Kospi index in South Korea was almost unchanged
- Hong Kong's Hang Seng Index rose by 2.9%
- China's Shanghai Composite Index rose by 1.4%
- Euro Stoxx 50 futures fell by 0.1%
- The Japanese yen rose 0.2% to 109.73 per dollar.
- The offshore yuan rose 0.2% to 6.4737 per dollar.
- The Bloomberg spot dollar index fell by 0.2%
- The euro exchange rate was at the level of 1.1858 USD.
- The yield on 10-year Treasury bonds was 1.24%.
- The yield on Australia's 10-year bonds was about 1.16%.
- West Texas Intermediate crude oil rose by 0.6% to 72.80 USD per barrel
- Gold fell by 0.6% to 1817.94 USD per ounce.