By Geoffrey Smith
GossipMantri.com – Apple 5G iPhones (NASDAQ 🙂 don’t quite meet expectations, bank profits continue to flow from Bank of America (NYSE :), Wells fargo (NYSE 🙂 and Goldman Sachs (NYSE :), the Chinese stock market hits a new benchmark and oil prices are struggling to regain the $ 40 level. Here’s what you need to know about the financial markets on Wednesday, October 14.
1. Apple’s new iPhones
Apple’s iPhone 5G launch fell short of optimists’ hopes as the company admitted much of its increased functionality would hardly benefit U.S. customers, due to slow rollout of networks. 5G.
Apple stock stabilized in pre-market trading after falling 2.7% on Tuesday as the new product launch unfolded. The company’s restrained prices for its four new models have raised concerns among analysts that gross margins could suffer.
Elsewhere, the Dutch company, whose machines allow chipmakers to print the new 5G chips, reported third quarter results well ahead of expectations and guided for another year of growth well above 10% in 2021 The two companies will have to deal with the potential fallout from any further deterioration in US-China relations.
2. Chinese stocks hit a benchmark
The Chinese stock market first crossed the $ 10 trillion mark, a testament to the strength of its tech companies and the size of the domestic market they enjoy, as well as the country’s relative success in tackling the Covid-19 virus.
China is the only major economy in the world to avoid a contraction this year, according to the International Monetary Fund, which forecast growth of 1.9% for it in its updated forecast released on Tuesday.
However, that hasn’t stopped businesses and individual industries from encountering problems: Evergrande (HK :), the country’s largest real estate developer, saw its shares in Hong Kong drop 16% after failing to raise as much as expected through a capital increase. Investors are increasingly concerned about a wall of maturing debt, and its 2025 dollar-denominated bonds are now trading at just 75 cents on the dollar, implying high expectations of debt restructuring.
3. US stocks should drop; the results of the bank always on point
US stock markets are expected to retreat again, after breaking a four-day winning streak on Tuesday under pressure from various sources. In addition to the continued impasse of the stimulus and its short-term effect on the economy, there have also been setbacks in the search for a Covid-19 vaccine, as well as less reassuring bank profits than it does. did not appear at first glance. Late Tuesday, Eli Lilly (NYSE 🙂 followed Johnson & Johnson (NYSE 🙂 to suspend their trial on the drug Covid-19 due to an adverse event.
As of 6:20 a.m. ET (10:20 a.m. GMT), were down 11 points, or less than 0.1%, while they were down 0.2% and down 0.1%.
Banks should be in the limelight again today, with and all reports, with PNC Financial (NYSE 🙂 and US Bancorp (NYSE :).
The results will also be reviewed after Delta missed expectations on Tuesday.
4. The IMF is preparing to scare the bond markets
Preparation for the fall meeting of the International Monetary Fund continues with the release of the IMF’s Budget Monitor, which will chart the likely course of budget deficits next year following the pandemic.
It is also the occasion to make a multitude of speeches by central bankers, including the President of the ECB, Christine Lagarde.
The IMF said on Tuesday it expects the pandemic to hit emerging markets, excluding China, harder than advanced markets, with a cumulative production loss of around 8.1% between the start of this year and the end of 2021.
5. Oil is struggling to stay above $ 40; API data due
Oil prices continued to struggle to stay above the $ 40 a barrel level overnight, after last week’s supply constraints faded from memory.
As of 6:20 a.m., futures were down 0.5% to $ 39.99 per barrel, while the international benchmark was down 0.4% to $ 42.28 per barrel.
At 4:30 p.m. ET, the will release its estimate of last week’s inventories in the U.S. Analysts expect government data, due Thursday this week due to the Columbus Day holiday, to show a drop of 3, 39 million barrels of crude stocks last week.