On November 4, the three major indexes of the US stock market diverged, and the Nasdaq and S&P 500 index hit new record highs. As of press time, the Dow Jones Industrial Average fell 0.03%, the Nasdaq rose 0.72%, and the S&P 500 rose 0.42%.
is the following summary of important information in the global market:
Global Macro
The Federal Reserve officially announced the reduction of bond purchases! Starting from November, we will buy 15 billion US dollars less per month
On November 3, local time, the Federal Reserve issued a statement after a two-day monetary policy meeting, saying that it will maintain the target range of the federal funds rate between 0-0.25%, which is in line with market expectations. Meanwhile, the Federal Reserve announced that as the economy recovers, it will launch a reduction in asset purchase plan later this month, with the scale of asset purchases set to decrease by $15 billion per month.
The Federal Reserve said that U.S. economic activity continued to strengthen in October, and the situation of industries hit by the epidemic improved. At the same time, the labor market has rebounded. Data released by the US employment data research firm ADP on November 3 showed that the number of U.S. corporate employment increased by 571,000 in October, higher than expected.
US ports are stranded with 30 million tons of cargo, the world's largest contract logistics supplier: The supply chain crisis has "peaked"
In recent months, the global supply chain situation has further deteriorated. Before the holiday season, 30 million tons of cargo were stranded outside US ports. However, recently, top warehousing operators have said the supply chain crisis has "peaked". “We’ve had the toughest times,” said Malcolm Wilson, CEO of GXO Logistics (GXO.US). It is reported that the company is the world's largest contract logistics supplier, with more than 860 warehouses around the world. "Hopefully things will get smoother as we move forward." A large backlog of container ships at ports on the west and east coasts of the United States, Wilson said, "A lot of cargo is flowing into our warehouses now." Mario Cordero, executive director of Portof Long Beach, the largest container port in the United States, said that as port congestion continues to intensify, Americans should buy holiday gifts in advance. He believes that port delays and bottlenecks will continue until the end of the year. "Hopefully we have some strong mitigation factors." About 40% of container cargo flows through the Port of Long Beach and the adjacent Port of Los Angeles. The port congestion reached an all-time high, with about 100 ships waiting at the dock or offshore. Before the outbreak, the average number of backlogs of ships at the two ports was between 10 and 20. Goldman Sachs economists have previously predicted that the backlog of U.S. ports may continue until the second half of 2022. To alleviate congestion at the port, U.S. President Biden issued a directive last month requiring ports to operate 24/7.
US stocks focus
Taper boots landed! US stocks hit a new high, and US dollar bonds were sold. How to interpret this market?
Chief analyst at Oxford Economic Research Institute John Canavan said the Fed's actions were in line with expectations. Although the wording in the Fed's statement "recognizes the uncertainty of the temporal theory of inflation to a certain extent, the Fed continues to support the temporal theory. Canavan said this has led to a steeper yield curve.
Of course, it should be pointed out that although the stock, bond and foreign exchange market did not provide hawkish feedback last night because the Fed initiated QE reduction, the current expectations of the Fed's interest rate hike next year are still high. Federal funds rate futures show that the possibility of the Federal Reserve hike in July 2022 is still as high as 90%. Traders also continue to expect the Fed to raise interest rates twice by December 2022.
This may also indicate that the overnight Fed resolution is by no means the end of Taper's "suspense", but may just be the beginning. In fact, although Powell said a lot last night, many questions still did not give clear answers: Although the Federal Reserve has currently set the rate of reducing bond purchases before the end of the year, it can still change it at any time if it wants to change in December; and the softening of the temporary wording of inflation and Powell's persistence are also making people's sense of distrust in it increasing day by day!
US stock company
Novartis sold 53.3 million shares of Roche, cashing out $20.7 billion
Novartis (NVS.US) said on Thursday that it had agreed to sell Novartis' bearer shares in a bilateral transaction, with a total price of $20.7 billion.
Novartis said in a statement that it had agreed to sell 53.3 million shares of Roche bearer shares at $388.99 per share (approximately CHF 356.93), the institution reflects the weighted average price of the Roche Novosing Stock Certificate (Genussschein) over the past 20 trading days ended November 2. The shortage of
chips is alleviated! Ford's US car sales and inventory improvement in October
latest data shows that Ford's US new car sales narrowed year-on-year in October, and inventory also rebounded from last month, indicating that the global chip shortage may ease.
On Wednesday (3rd), Ford Motor Co., Ltd. announced that its sales of new cars in the United States in October were 175,918, a year-on-year decrease of 4%, a decrease of significantly narrower than in previous months. This is Ford's best sales since April and the first time since May, the year-on-year decline narrowed to single digits.
"The continuous improvement of inventory and new products has made Ford the best-selling automaker in the United States for the second consecutive month. The last time this result was achieved 23 years ago," said Andrew Frick, Ford's vice president of sales in the United States and Canada. "Retail sales increased by 16% from September, and the retail market share rose by 1.6 percentage points."
drug research and development company Evotec was listed in the United States tonight, with an IPO price of $26.16 per share
At the proposed price, Evotec's market value will reach $9.2 billion. Founded in 1993 and headquartered in Hamburg, Germany, Evotec focuses on partnering with leading pharmaceutical and biotech companies, academic institutions, patient groups and venture capitalists to advance innovative therapeutic products and methods, including neurological diseases, diabetes and diabetes complications, pain and inflammation, tumors, infectious diseases, respiratory diseases, fibrosis, rare diseases and women's health.
In 2019-2020, the company's revenue was US$446 million and US$501 million, respectively, and the corresponding net profit during this period was US$37.23 million and US$6.25 million, respectively. In the first half of 2021, its revenue was US$271 million, compared with US$231 million in the same period last year, and its corresponding net profit was US$113 million and US$7.26 million respectively.
US Federal Aviation Administration: Boeing still has a lot of work to do on passenger aircraft safety issues
On the 3rd local time, US Federal Aviation Administration Director Steve Dixon said that Boeing still needs to do a lot of work on passenger aircraft safety issues. The Federal Aviation Administration is reducing Boeing's authority on aircraft certification, "requiring manufacturers to increase transparency." According to Maria Cantwell, chairman of the U.S. Senate Commerce Committee, who held a hearing on the 3rd, she plans to release a report by the end of this year, which disclosed that engineers on the Boeing production line had early warnings about passenger aircraft safety defects, but these warnings were ignored.
(Article source: Oriental Wealth Research Center)
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