Forthcoming events in the United States of America and what is their impact on global markets?

2021-09-22T17:51:41
Nikkei United States Wall Street
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Forthcoming events in the United States of America and what is their impact on global markets?

Forthcoming events in the United States of America and what is their impact on global markets:Today, there is a marked variation in the performance of global stock exchanges, with the Chinese stock exchange rising in Asia,
while the Japanese declined, amid anticipation for the Federal Reserve meeting. 

Evest follows all developments in the trading markets and relays them to you daily in the following report.

Topics:

Forthcoming meeting to pass the United States Government Finance Act?

Republicans And Democrats

Variation in the performance of Wall Street indices

Nikkei declines and Shanghai rises

Oil rises following US inventories decline

 

Forthcoming meeting to pass the United States Government Finance Act?

House Democrats on Tuesday passed a bill to fund the US government through December 3 and suspend the borrowing limit until the end of 2022,
sending it to the Senate, where Republicans vowed to block it.

The House vote was 220-211 along party lines. It’s not clear when the Senate will act.

If Republicans stick to their refusal to support a measure in the Senate, Democrats will have to come up with a new strategy or face the government’s dual problems in the event of a partial shutdown,
inability to pay bills and the risk of default for the first time in recent history.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer on Monday set the stage for a showdown with Republicans ,

when they said they would combine spending and debt measures in one bill,
despite Senate Republican Leader Mitch McConnell’s pledge to block a $28.4 trillion debt increase. 

McConnell reiterated that pledge on Tuesday. But he added: “I want to repeat again: America must never fall behind.

It’s never happened and we’ll never do it.”

Speaking to reporters, McConnell repeated an argument he’s been making for weeks that it was the majority party that decided to raise the debt ceiling.

Which in turn would allow Republicans to avoid a vote to increase the debt limit before next year’s congressional elections.

After the House vote, McConnell and fellow Republican Senator Richard Shelby said they had introduced a bill to fund current government operations through December 3, without any increase in the debt limit.

Republicans And Democrats

Republicans said Democrats could raise the debt limit themselves through conciliation, a maneuver meant to guide the Senate’s ruling by forcing 60 of the Senate’s 100 members to approve the legislation. Democrats continue to resist that act, saying that a vote to raise the debt limit must be bipartisan.

“Manipulating the debt ceiling could lead to dire consequences for the American people,” Schumer said in a speech.

A source familiar with the planning said that Schumer and Pelosi will meet their Democratic colleagues, President Joe Biden, at the White House on Wednesday afternoon.

The meeting coincides with Washington’s fight against double deadlines for government funding and raising the debt ceiling, as well as pushing Democrats to pass Biden’s massive $3.5 trillion domestic agenda, using a reconciliation maneuver.

A Variation in the performance of Wall Street indices

US stock market indices changed on Tuesday by 0.1-0.2% after rising at the start of the session.

The Dow Jones index fell (-0.2%) for the fourth session in a row, and the rise of the Nasdaq index (+ 0.2%) was due to increased demand for super-tech stocks after their prices fell the previous day.

The US Commerce Department said on Tuesday that the number of homes starting in August in the US increased by 3.9% from the previous month to 1.615 million at an annual basis.

Experts predicted an average rise of 2%.

The market awaits the results of the September meeting of the Federal Reserve system, which ends on Wednesday.

Federal Reserve Chairman Jerome Powell’s speech is expected to highlight the timing of ending the $120 billion-a-month asset buyback program.

Nikkei declines and Shanghai rises

Indices dynamics in Asia were also mixed on Wednesday, with Japan’s Nikkei 225 index declining by 0.7%, China’s Shanghai Composite index rising by 0.4%, and the Hong Kong and South Korea exchanges stock exchanges closed for holidays, as well as US stock futures, with the Standard & Poor’s 500 future rose by 0.6%.

Investors are still under pressure from the stance on potential defaults by one of China’s largest developers, China Evergrande Group.

The day before, Bloomberg reported that Evergrande had defaulted on loan payments to at least two banks on Monday. The heavily indebted company is due to pay interest on two bond issues on Thursday.

The People’s Bank of China decided in September to keep the loan prime rate (LPR) for first prime borrowers unchanged for 17 consecutive months.

The annual loan prime rate (LPR) remains at 3.85% per year.

This rate was last reduced in April 2020. The Bank of China said the interest rate on the five-year loan was stable at 4.65%.

According to the results of its September meeting, the Bank of Japan also kept the short-term interest rate on commercial bank deposits at the central bank at -0.1% annually
, and the target yield on 10-year government bonds at about zero.

Oil rises after two sessions of decline

Oil prices rose on Wednesday morning amid concerns that the US production’s recovery in the Gulf of Mexico
after Hurricane Ida is slower than expected, according to the Wall Street Journal. 

Brent crude futures are trading at $1.2 above the level seen at the close of major trading yesterday, Tuesday.

Brent crude futures for November rose by 1.4% to $75.39 per barrel, and November futures for West Texas Intermediate rose by 1.6% to $71.61 per barrel.

The American Petroleum Institute (API) announced Tuesday that, over the past week,
US oil reserves have declined by 6.1 million barrels, and gasoline – 432,000 barrels and distillation products – by 2.7 million barrels.

Inventories at the terminal in Cushing, Oklahoma,
where oil traded on the New York Stock Exchange is stored, declined by 1.7 million barrels.

API receives information from refinery operators, storage tanks and pipelines on a voluntary basis.

While official data from the United States Department of Energy on reserves will be released today, Wednesday.

Analysts interviewed by S&P Global Platts expect oil reserves to decline by 3.8 million barrels, and gasoline – by 900 thousand barrels and distillates – by 1.4 million barrels. 

 

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