Investing.com – Here are 5 big things to know about the financial markets on Thursday, September 29:
1.debtticketPrices tumble again, eyes on U.S. economic data
Global bond markets returned to their losses despite emergency bond purchases by Britain on Wednesday, with a fresh wave of safe-haven demand boosting the dollar.
The benchmark yield rose again by 13 basis points to 3.84% and by 12 basis points to 4.22%. Meanwhile, it rose 0.6% to 113.62.
In addition, the U.S. will be released within days, and the data is expected to change little. The presidents of the St. Louis Fed and the Cleveland Fed will speak,
In addition, He is expected to raise interest rates, and He is expected to keep interest rates unchanged.
2.Britainnational assetsslip again
British assets fell again after Prime Minister Liz Truss defied market turmoil and insisted on a tax cut plan that he called the “right way”. Earlier, in order to appease the market, the Bank of England promised to buy 65 billion pounds of British government bonds to ensure market liquidity.
Last week, many pension funds in the UK sold assets on a large scale to meet margin requirements as gilt yields soared.
Meanwhile, former Bank of England governor Mark Carney accused the Liz Truss government’s tax cuts plan for weakening the role of the Bank of England and the Office for Budget Responsibility.
While the Bank of England’s emergency bond purchases address the short-term problems of market instability, the practice is the exact opposite of its monetary policy. In addition, the Bank of England originally planned to start selling its holdings of British government bonds from October. But now, the Bank of England’s task of lowering inflation is getting harder.
3.U.S. stock futures fall, NikeMicron will report earnings
U.S. stock futures fell, giving back some of yesterday’s gains.
In terms of individual stocks, Tyson Video ( Tyson Foods ) (NYSE:) COO suspended; CarMax (NYSE:) reports pre-market, Nike (NYSE: ) and Micron (NASDAQ: ) will report after the bell.
4. German CPIRecord high and break 10%; Winter’s hit to Germany’s economy may last for two years
Data released earlier showed that it reached double digits, soaring from 7.9% in August to 10.0%, exceeding market expectations of 9.4%; it also soared from 0.3% to 1.9%.
Soaring CPI added to the economic woes in Germany, Europe’s largest economy. Four German research institutes downgraded their forecast for Germany’s economic growth this year to 1.4 percent from 2.7 percent six months ago, and forecast a contraction of 0.4 percent next year, rather than the previous growth of more than 3 percent.
While the economy is suffering from a cold winter, the weather is also getting colder, especially at this moment when Germany is short of natural gas. The above-mentioned agencies also believe that if there is insufficient natural gas, the economic performance will be even worse, with German GDP likely to shrink by 7.9% in 2023 and 4.2% in 2024.
In the face of the tense energy situation, Germany’s energy regulator called on the public to cut natural gas consumption by 20%.
5. Porsche goes public, twice Ferrari’s market value
German luxury carmaker Porsche (F: ) rose 5 percent on its debut in what was Europe’s biggest IPO so far this year.
The IPO raised 19.5 billion euros ($19 billion) for Porsche parent Volkswagen (ETR: ), which still holds a controlling stake in Porsche after the listing. Porsche’s total market value of 78 billion euros is double that of rival Ferrari (NYSE: ).
Ironically, Volkswagen’s market cap of just 81.5 billion euros means that the stock market sees little value in Volkswagen’s own business.
[This article is from Yingwei Caiqing Investing.com, to read more, please log on to cn.investing.com or download Yingwei Caiqing App]
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Compilation: Liu Chuan