Global Market Trends (4th Oct., 2021)

Analyst View
U.S. stock indexes on Wednesday responded positively to the news that the Federal Reserve will begin tapering its asset purchases later this month, the indices notched to very high records. The Dow Jones Industrial Average rose 104 points, or 0.29%, while the S&P 500 index and the Nasdaq Composite index rose 0.65% and 1.04%, respectively. The gains registered by all the three monitored major averages hinges on record-high territories.

The Federal Reserve concluded a two-day meeting on Wednesday, announcing it would begin reducing the pace of its Treasury purchases by $10 million and mortgage-backed securities by $5 billion. The market expects the first rate hike to occur in July 2022. Following the Fed's decision, the yield on the 10-year note closed up 3 basis points to 1.58% 

Economic data, the ADP Employment report showed private-sector payrolls added 571,000 workers in October, exceeding the 400,000 new jobs that analysts surveyed by Refinitiv were expecting. The October nonfarm payroll report is due out Friday. 

Deere & Co. workers rejected a contract offer, continuing a three-week-old strike. The latest offer would’ve raised wages by 10% this year and 5% in 2023 and 2025 in addition to giving lump-sum bonuses in 2022, 2024, and 2026.   

Commodities, West Texas Intermediate crude oil fell $3.05 to $80.86 a barrel and gold slid $25.10 to $1,763.60 an ounce.  

 

European bourses trading outcome yesterday was mixed with France’s CAC 40 adding 0.34% and Germany’s DAX 30 edging up 0.03% while Britain’s FTSE 100 declined 0.36%. 

Asia indexes had a declined position with China’s Shanghai Composite index slipping 0.2% and Hong Kong’s Hang Seng index lost 0.3%. Japan’s Nikkei 225 was closed for holiday. 













SOURCE: CNBC
IMAGE SOURCE: PIXABAY