Five Things Everyone Will Be Talking About Today
China stocks enter a bull market, it's 'Super Thursday' at the Bank of England and bonds tumble around the globe after Yellen speaks. Here are some of the things people in markets are talking about today.
China back in bull market
The Shanghai Composite index closed 1.8 percent higher, taking its advance from the August low to more than 20 percent. While the index is still far from its June highs, government actions against short selling and a return of margin debt have managed to turn the tide.
The Bank of England announces its monetary policy decisions at 7:00 a.m. ET, with none of the economists surveyed by Bloomberg expecting any change in rates. Investors will be concentrating on Governor Mark Carney's press conference, delivered as part of the bank's final Inflation Report of the year, for signals as to when the BoE will start to raise rates.
Bonds across the globe fell following Federal Reserve Chair Janet Yellen's testimony to congress yesterday, in which she made clear that a rate rise at the central bank's December meeting is a “live possibility.” Market-based expectations for a December rate rise now stand at 58 percent, after falling below 25 percent in October.
Facebook Inc. beat revenue expectations in the third quarter, announcing sales of $4.5 billion in the three-month period. The company said that daily users of its platform topped 1 billion for the first time. Facebook shares are 4.4 percent higher in premarket trading this morning.
EU cuts euro-area growth outlook
The European Commission has cut its growth and inflation outlook for the euro-area for 2016 citing lower oil prices and the weakening global outlook. That weakening outlook was reflected in this morning's German factory orders data which unexpectedly declined for a third month in a row. Investors continue to look to next month's ECB meeting for further stimulus to the economy.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Is Europe's economy so bad that the ECB will run out of things to buy?
- Narendra Modi wants to get his hands on India's massive gold stash.
- The buddhist priest who became a billionaire by snubbing investors.
- E.U. says Germany's refugee intake is set to boost the economy.
- Putin thinks he is "Vladimir the Great," according to Condoleezza Rice.
- The rise and fall of a mining company that once tried to buy Harrods.
- The meteorologists who help fight U.S. fires.
Want to receive this post, and more, into your inbox every morning? Sign up here