Morning Note: A Round-up of Today's Market News.
Market News
JPMorgan Chase CEO Jamie Dimon registered his doubts that the world’s largest economy can straddle slowing growth without tipping into a recession. Fed futures now price 52% chance of 50bps rate cut at the 7 November meeting (two days after US election) and 48% chance for 25bps rate cut. The 10-year Treasury yields 3.76%, while gold touched a record high and currently trades at to $2,615 an ounce. This week, investors will get fresh data on PMI, GDP, and the Fed’s preferred inflation gauge, PCE.
In Asia this morning, shares in China (Shanghai Composite, +0.4%) and Hong Kong (Hang Seng, +0.1%) edged high amid expectations that China may ramp up efforts to revive growth. The country announced plans for a rare economic briefing on Tuesday by three top financial regulators just as it cut one of its short-term policy rates, fuelling speculation that fresh stimulus is on the way. Japan was closed for a holiday.
The S&P Futures currently predict a small increase at the open this afternoon. Apollo offered to make an equity-like investment of up to $5bn in Intel; the chipmaker is considering the proposal. The development comes as Qualcomm is said to have floated a friendly takeover of Intel in recent days. Broadcom isn’t currently evaluating a bid for Intel. The market cap of Intel is currently around $93bn.
The FTSE 100 is currently little changed at 8,230. Rea Group has sweetened its offer for Rightmove, pushing the stock up 3% in early trading this morning. Sterling trades at $1.3296 and €1.1924.
The world needs more mines to meet rising demand for key energy-transition metals like copper, as M&As will not plug a looming supply gap, Rio Tinto Chairman Dominic Barton said. Brent Crude gave up some of its recent gains and currently trades at $74 a barrel.
Uranium stocks bounced after the Microsoft Three Mile Island deal with Constellation Energy. The agreement, which will require regulatory approval, will involve the reopening of a nuclear reactor that has been shut since 2019.
Source: Bloomberg