Summary of the Impacts of Releases
24 October 2022 – 4 November 2022
Impact of Economic Releases:
The major economic releases of this week include GDP and Initial Jobless Claims in U.S.
Europe
- Political movements along with activities from the Central Banks in Europe has caused a rally in the stock markets as earning reports from companies are offsetting the gloomy economy outlook
- Rishi Sunak has been appointed the new leader of the U.K’s conservative party making him the new British Prime Minister; On 25th October (Tuesday), in the British Prime Minister’s first address to the nation he pledged to lead the country out of its economy slump and will do all he can to build a stronger economy
- Following the announcement of the newly appointed British Prime Minister, the sterling rallied to a six-week high with the equity markets experiencing some level of boost showing investors’ positive sentiments about the new leadership
- The ECB has raised their interest rates by another 75 basis points as a step to tighten policy in order to fight off the insurging high inflation rates; ECB raised interest rates to its highest at 1.5% making it its highest ever since 2009, Denmark has also raised its interest rates to its highest level at 1.25% in 13 years
- In Sweden, car manufacturer Volvo had to stop its production due to the shortage of semiconductors, chip shortages due to the increasing demand for it; Supply of chips have been the bottlenecks of many such production, causing disruption and increasing the cost of production for many industries
- Lack of supply in energy, shortages of components and supply chain issues has also been the main cause of the increased demand
- With the coming winter season for Europe, the lack in supply could mean a lot to the region, with shortage in gas to keep the countries warm, the government are already taking measures to mitigate the crisis.
U.S.
- Quarterly earnings reports showed mixed results; Global IT companies Google, Microsoft, Apple and Amazon posted lower than estimated quarterly net profit and dropped more than 10% during after trading hours; The impact of the unexpected earning caused the S&P 500 index fall as the companies make up 20% of the index
- As the U.S. government tightens its monetary policies, the average interest rate on U.S. home loan reached the highest level since 2001; Average contract rate on a 30-year fixed mortgage rate rose 22 basis points to 7.16% while mortgage loan application volume fell 1.7%
- U.S. GDP in the third quarter grew 2.6% which was 0.2% higher than the estimated figure; The expansion was propelled by a narrowing of the trade deficit as lower consumer demand dampened imports while exports rose due to the aggressive sales of oil sector
- Comparing with the previous week, S&P 500 Index rose 3.86% to 3,807.30 points, NASDAQ Composite rose 1.68% to 10,792.67 points, Dow Jones Industrial Average rose 5.62% to 32,037.83 points.
All timings here are based on SGT/HKT time zone
Learn more:https://www.eurex.com/ex-en/
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