The main events of today in financial markets
2023.01.09 09:07
The main events of today in financial markets
By Ray Johnson
Budrigannews.com – A day after Alibaba (NYSE:), a top official in China declared that the country’s clampdown on large Internet companies had effectively come to an end. Ant Group, a major provider of financial services, was sold by its founder, Jack Ma.
After a crowd supporting ousted President Jair Bolsonaro stormed Congress and government buildings on Sunday, Brazilian police restored order. Over 300 people were detained, and the new president, Lula da Silva, promised to bring them to justice. After a “Goldilocks” jobs report on Friday, stocks are expected to open higher, building on Friday’s gains.
On the other hand, videogame publishers are under pressure following a big profit warning in the sector. Also, crude oil goes up as China shows that it’s getting ready for a big increase in consumption this year. On Monday, January 9, here is everything you need to know about financial markets.
1. The two-year crackdown on Internet giants in China has ended, according to a top Chinese official, prompting a rise in technology stocks.
After months of regulatory actions that have significantly impacted the fortunes of China’s largest Internet entrepreneurs, Guo Shuqing, chairman of China’s Banking and Insurance Regulatory Commission, informed state media that the authorities had effectively ended their campaign against the country’s big platform companies.
The news came a day after the financial services giant Ant Group said that Jack Ma had given up control of the company. This seemed like a reward for the company getting permission to raise money.
As a result, Alibaba ADRs increased 5% in premarket trading.
2. After Bolsonaro supporters stormed government buildings on Sunday, police in Brazil declared that Lula had regained complete control. The buildings were stormed by supporters of the ousted right-wing President Jair Bolsonaro.
Similar to the riot at the U.S. Capitol on January 6 following President Donald Trump’s defeat in the election, Bolsonaro criticized the rioters and denied any involvement. Ignacio “Lula” da Silva, the new president, said he would “follow the money” in an investigation into who was behind it and promised to punish those responsible. More than 300 people were detained.
In the meantime, the governor of Brasilia, Brazil’s capital, was given a 90-day suspension by the Supreme Court for failing to quell the riot.
3. Stocks set for a higher opening U.S. stock markets are set to open higher on Friday, building on Friday’s gains that were made following a jobs report in December that sparked speculation regarding when the Federal Reserve will switch from raising interest rates to cutting them.
Hopes were raised that the Federal Reserve would still be able to achieve its goal of a “soft landing” for the economy because the report showed that wage and job growth were slowing down to a more manageable level without indicating that there would be a recession soon.
were up 85 points, or 0.3 percent, by 06:30 ET (11:30 GMT), while and were up the same amount. Deere (NYSE:), which may be put under pressure if farmers are allowed to repair their own Deere equipment. A lucrative stream of after-sales service for the company is in jeopardy as a result of a deal that was made over the weekend with representatives of farmers.
Goldman Sachs (NYSE:) will also be a topic of discussion. which, according to Bloomberg, was overhiring during the pandemic, resulting in its largest round of layoffs since 2009.
Tilray, a cannabis company (NASDAQ:) is going to announce earnings.
4. Publishers of video games in the spotlight following a significant profit warning in Europe Video game publishers will be another area of focus on Monday, following Frontier Developments (LON:) in the United Kingdom. reported a significant decrease in the number of people purchasing its most popular Formula 1 racing game.
In addition to Planet Coaster and Jurassic World Evolution sales, Frontier reported that demand for its F1 Manager 2022 game fell “materially below” expectations in 2022. In 2023, its predicted revenue may decrease.
Frontier’s F1 Manager 2022 is a benchmark for that particular gaming subgenre, even though it isn’t widely known. However, the results could be used by other companies like Electronic Arts (NASDAQ:) likewise Ubisoft (EPA: The latter fell 3.5 percent in Paris morning trading.
5. Oil prices rise in response to China’s announcement of a significant increase in import quotas for the upcoming year, which suggests that China is preparing for a significant increase in demand as it reopens its economy. Sources from Reuters suggested an increase of 20% from import levels in 2022.
Futures were up 3.3% at $76.17 a barrel by 06:45 ET, while spot prices were up 3.0% at $80.89 a barrel.
During the following week, as Chinese travelers prepare to travel without restrictions during the Lunar New Year holiday for the first time since 2020, the impact of the change in China’s public health policies will be evident.
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A ship that ran aground in the Suez Canal was quickly freed by tugboats, resuming vital waterway traffic and eliminating a brief threat to the spot market elsewhere.
