Well folks, it’s Friday eve which means there are only two trading sessions left in the week and all eyes are on how the UK is dealing with their economic crisis - since the Pound dropped early Monday, the BoE announced their government bond purchasing program as a way to keep yields from rising further and to remedy their currency’s drop. Since instituting these measures, the pound has risen just over 4% from its lows. Anyways, there’s a plethora of big-picture news that hit the market yesterday and early today, so read on for your daily dose of market inspiration!
Markets in Review
The North American market is showing a lot of red this morning with futures down 79, 98 and 126 bps for the Dow, S&P and Nasdaq currently. This comes after the S&P had a strong trading session yesterday, with a continued stream of buying pushing the index up 150bps by the close. This was key in maintaining its stay above 52-week lows, however, even flirting with this level means we’re in a bearish or sideways territory at best. As such, it’s likely to trade between current price levels and the 3900-point level (which also coincides with the 200-day moving average) for the foreseeable future.
Trade of the Day - Short: Nanobiotix S.A. (NBTX-NASDAQ) | Timeline: 2 days
Nanobiotix S.A. (NBTX), which focuses on developing product candidates for the treatment of cancer, reported earnings yesterday, and although testing for illnesses can change the world, it comes with high operating costs. NBTX reported a net loss of €26.4 million or €0.76 per share and now has to restructure its existing debt obligations with the European Investment Bank (EIB), only giving them runway until the second half of next year. Turning to the chart, the stock has suffered immensely through 2023, losing over 60% of its value. That said, buyers have recently attempted to reverse this extremely bearish narrative pre-earnings this quarter, but after hearing what the company had to say the stock is likely to reject resistance and continue oscillating within this broadening wedge.
Nord Stream Updates
The Nord Stream pipeline continues to stay in the news as Swedish authorities have found an additional leak within the pipes, bringing the total to four. No suspects have been apprehended, however, that hasn’t stopped fingers from being pointed at a wide array of nations including, Russia, the US, and an assortment of EU member states. European states have become especially concerned as German Chancellor Olaf Scholz has said that due to the damage to the pipelines there will be no gas for the foreseeable future. As winter is fast approaching many are seeking alternative heating sources, including firewood. In other gas news, independent reports have claimed that another gas pipeline, this one to Crimea, located within the Kherson region, has been destroyed. There has been little corroboration from major outlets, and as such, we cannot confirm the authenticity of these reports. (Check out the full video) As for the Russians, they’re now planning to absorb the Ukrainian territories that recently voted in the referendums during a treaty signing on Friday. Chinese Amphibious Invasion Drills
Recent satellite images revealed that the Chinese Navy has begun using civilian ships to transport troops and armoured equipment. While this technique has been speculated about for some time, this is some of the first proof being shown to the public. UK On the Brink
A senior banker has broken ranks, and told of the true chaos that is currently besieging the UK markets after the release of the new government’s “mini-budget”. In the days following this budget the Pound and bond values crashed, while rates jumped to counter. While most are aware of the dire consequences of such volatility within a short period, many aren’t aware of how serious it truly is. This banker admitted he thought it was the end as at one point during Wednesday’s morning trading, there were no buyers of long-term UK Gilt. Since then, the Bank of England has announced a ￡65B bond-buying program to detract from or avoid a crisis in the debt markets.
Many also speculate that UK treasuries are being dumped by those who’ve run out of collateral, or were margin called. (Source)
ECB’s Kazaks Says Next Hike Must Be Big, Smaller Steps to Follow
The European Central Bank should raise interest rates by another 75 basis points when it next sets policy in October, with steps likely to get smaller after that, according to Governing Council member Martins Kazaks. (Full Story)
Fewer people seek US unemployment aid amid solid hiring
The number of Americans filing for jobless benefits dropped last week, a sign that few companies are cutting jobs despite high inflation and a weak economy. (Full Story)
Enbridge buys U.S. renewable power project developer Tri Global Energy
Enbridge Inc. says it has bought Tri Global Energy (TGE), a U.S. renewable power project developer, for US$270 million in cash and assumed debt. (Full Story)
Russia says it will formally annex 4 Ukrainian regions
Russia said it will hold a ceremony on Friday to mark the annexation of four Ukrainian territories. (Full Story)
OPEC+ Discusses Cutting Oil Output at Next Week’s Meeting
OPEC+ has begun discussions about cutting oil output when it meets next week, as a fragile global economy continues to pressure crude prices. (Full Story)
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