Wall Street Today: Liquidity is evaporating before the fed taper hits markets
Asia eyes steady start amid taper debate; bonds up: markets wrap
Asian stocks look set for modest gains early Thursday after U.S. shares and Treasuries climbed on signs of moderating inflation that reduced concerns about an imminent paring back of Federal Reserve stimulus.
Futures edged up in Japan and Australia and were steady in Hong Kong. U.S. contracts fluctuated after the S&P 500 hit a record and the tech-heavy Nasdaq 100 fell amid a rotation to cyclical shares. Treasuries rose following a strong auction of 10-year notes and a U.S. inflation report lending support to the Fed’s assessment that price pressures are transitory. The dollar held a drop.
Liquidity is evaporating even before the fed taper hits markets
A measure of U.S. financial liquidity whose declines foreshadowed two of the decade’s worst equity routs is flashing alarms even before the Federal Reserve embarks on its planned winding down of asset purchases.
The signal is obscure, but has sent meaningful signs in the past. Roughly speaking, it’s the gap between the rates of growth in money supply and gross domestic product, an indicator known to eco-geeks as Marshallian K. It just turned negative for the first time since 2018, meaning GDP is rising faster than the government’s M2 account.
Inflation stayed high in July as economy rebounded
Inflation remained elevated in July as the economic recovery continued, but prices showed evidence of cooling amid pandemic-related supply problems and signs that the recent rise in infections is starting to crimp some business activity.
Consumer prices rose 5.4% in July from a year earlier, the same pace as in June, the highest 12-month rate since 2008, the Labor Department reported Wednesday.
Southwest Airlines says delta variant is hurting its business
$Southwest Airlines (LUV.US)$said the recent surge in cases is causing bookings to slow and cancellations to rise, showing how quickly the Delta variant is denting economic activity.
The airline said Wednesday that while demand for the key Labor Day weekend remained healthy, the recent slowdown would make it difficult to turn a profit in the third quarter, excluding the impact of government payroll assistance. That is even after a fare sale designed to stoke the return of business traffic in the fall.
Fed should announce bond taper in September, begin it in October, says Dallas Fed President Kaplan
Dallas Federal Reserve President Robert Kaplan said Wednesday that the central bank should begin to taper its monthly purchases of Treasury bonds and mortgage-backed securities in October.
His view that the central bank ought to begin cutting back in two months is perhaps the most ambitious from a Fed president to date.
White House calls on OPEC to boost oil production as gasoline prices rise
The White House is calling on OPEC and its oil-producing allies to boost production in an effort to combat climbing gasoline prices, amid concerns that rising inflation could derail the economic recovery from Covid.
Biden administration officials spoke with representatives from OPEC’s de facto leader Saudi Arabia this week, as well as with representatives from the United Arab Emirates and other OPEC+ members.
Chinese EV maker NIO’s quarterly loss narrows on demand rebound
Chinese electric vehicle startup $NIO Inc (NIO.US)$reported a narrower second-quarter loss on a recovery in car-buyer demand, and said it’s working with semiconductor suppliers to mitigate the impact on production from a global chip shortage.
The Shanghai-based company posted a net loss of 587.2 million yuan ($90.6 million) in the three months ended June 30, compared with a 1.18 billion yuan shortfall a year earlier, it said in a statement. Revenue surged to 8.45 billion yuan, exceeding analyst estimates of 8.29 billion yuan, according to data compiled by Bloomberg.
Deliveroo orders double in first results since IPO
Deliveroo narrowed its pre-tax losses by almost a fifth to £104.8M in the first half, as revenue rose 82 per cent to £922.5M and orders doubled, the food delivery company said in its first results since March’s initial public offering.
The London-based company delivered 148.8M meals and groceries in the first six months of 2021, twice as many orders as in the same period a year ago. Monthly active consumers increased 81 per cent year on year to 7.8m people.
Source: Bloomberg, Dow Jones, CNBC, Financial Times
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102780775 : Good
smallbaguette : yes tapering should be coming.
moolele : Run first talk later, lol
money 8888 :
money 8888 : Good
101819108 : Good
102315873 : Liquidity is evaporating even before fed taper hits the market << this isn't "good" in any sense at all for stock prices. Fed tapering means less support for the economy.
Those saying this is "good" should really go read up alot more before investing.
MaleMooMoo :
♤方展博♤ : Time to get in now.