China is pushing Asian markets to rise

American companies Asian stock markets Chinese indices

China is pushing Asian markets to rise and a prospective week for the profits of major American companies

China is pushing Asian markets to rise and a prospective week for the profits of major American companies :On Tuesday morning, the situation in world markets looks promising.

Major Asian stock markets, led by Chinese indices, are growing and Brent oil tries to return above $85 per barrel. 

Evest follows all this in the following report.


Positive dynamics in Asia thanks to China

Big companies are announcing their financial results this week

Yellen calls for resolving the problem of the national debt limit as soon as possible.

Brent is trying to get back to the $85 level again

Today’s agenda



Positive dynamics in Asia thanks to China

On Tuesday, positive dynamics for Asian stock indices prevailed.

Japan’s Nikkei 225 rose by 0.7%, China’s Shanghai composite – 0.7%, Hong Kong’s Hang Seng by 1.4% and Standard & Poor’s future by 0.2%.

Investors are expecting signs from the Central Bank of China regarding possible actions to support the economy.

The outlook for easing monetary policy has subsided amid signs from the regulator that he has other ways to support GDP growth.

The Chinese stock market was recovering on Tuesday after intensive sales. The consumer staples sector was among the growth leaders after the previous day’s decline under Chinese President Xi Jinping’s statements about the need to increase the sales tax. 

The coal production sector is growing again with another record price for coal and coke.

In northern China, night frosts are expected, referring to the active use of fossil fuels for heating. 

With the rise in current gas prices, petroleum products, including heating oil, have become a clear alternative.

Big companies are announcing their financial results this week

Stock indices in the United States changed on Monday by 0.1-0.8%.

The Dow Jones Industrial Index fell by 0.1% amid the current quarterly reporting season. 

Netflix, Johnson & Johnson, United Airlines, Procter & Gambell, Tesla, Verizon, IBM and Comunicshens will announce the results this week.

To date, 41 companies on the Standard & Poor’s 500 index have submitted reports, 80% of which have exceeded expectations, according to FactSet.

In the meantime, the 10-year US Treasury yield rose back to 1.627%.

Rising yields put some pressure on tech companies’ stocks this year.

Yellen calls for resolving the problem of the national debt limit as soon as possible.

US Treasury Secretary Janet Yellen once again called on the US Congress to resolve the national debt limit problem as soon as possible.

In a letter to congressional leaders, Yellen said that a bill passed earlier this month is set to raise the government debt ceiling by $480 billion,
allowing the Treasury to pay off the debt by December 3 and provide only temporary ease.

“It is necessary for Congress to take action to lift or suspend the national debt limit so that the Government is confident that it can meet its long-term obligations,” Yellen said.

Republicans said they would not help Democrats raise the United States national debt limit anymore.

Last Thursday, US President Joe Biden signed a bill to increase the national debt limit by $480 billion.

Raising the public debt ceiling would not add new costs, but would essentially allow the government to repay its debt.

In the event that Congress fails to comply with the increase bill, the Treasury Department will have to suspend payments of debt obligations,
which could mean a government default.

Yellen said in September that the default of the United States could lead to a historic financial crisis,
that would exacerbate the damage to the global economy caused by the Coronavirus pandemic.

A default can lead to a jump in interest rates, a decline in stock markets and other financial problems.

The United States economy’s recovery, which we are witnessing now, may turn into a recession,
and we will lose billions of GDP’s dollars and Yellen also warned against job losses. “After this crisis, we will become a weaker country forever.”

Brent is trying to get back to the $85 level again

Oil prices are trying to rise again after yesterday’s correction.

Brent crude rose the previous day to $86 per barrel in the morning and fell below $84 per barrel in the evening.

The cost of Brent crude futures for December on Tuesday was $84.7 per barrel (+ 0.4% and -0.6% the previous day),
and the November price for West Texas Intermediate crude was $82.96 per barrel (+ 0.6% and + 0.2% on Monday).

Brent crude declined on Monday for the first time in three sessions, while West Texas Intermediate crude ended trading in the positive zone,
although it pared gains by the end of the day.

According to Bloomberg, citing sources in OPEC +, OECD countries’s oil production in September was 15% lower than planned,
since some participants,
including Nigeria, Angola and Azerbaijan, were unable to increase production in sufficient quantities.

According to MarketWatch analysts: “Volatility in the oil market is likely to increase as prices are now at their highest levels in several years.

Meanwhile, the current balance of supply and demand indicates a further increase in oil prices.”

OPEC + countries are intensifying production slower than expected,

while demand for oil and petroleum products will rise as the United States prepares to lift travel restrictions and thus increase aviation fuel consumption



In the afternoon, figures on the construction’s volume in the Eurozone will be released, Bank of England President Andrew Bailey will speak,
new construction data and their statements for September will be published in the United States,

and the American Petroleum Institute will announce the oil inventory report.