Coming soon are new quarterly numbers from America’s largest and most important companies. Everything from big bank Goldman Sachs to Tesla to IBM will be releasing new status updates this week.
According to FactSet, analysts covering US stocks are anticipating a dull earnings season, with earnings estimates down an average of seven percent from the same quarter a year ago.
Ahead of this week’s results, the main indices of the US stock market rose:
- The S&P 500 rose 0.4 percent.
- The Dow Jones Industrial Average rose 0.2 percent.
- The Nasdaq Composite Index rose 0.9 percent.
And so the good mood of last week is back, except perhaps on Friday. The week that passed was, among other things, colored by the best prices of both the Nasdaq Composite and the S&P 500, while there were also high inflation figures from the USA.
“I think the market is thrilled about a soft landing scenario and lower inflation,” Ed Yardeni, CEO of Yardeni Research, a consulting firm, commented to CNBC on Monday.
Russia withdrew from the grain agreement
In commodities markets, there were bigger moves: The price of wheat for delivery rose in September after Russia announced that the country would not extend an agreement for grain exports across the Black Sea.
Moscow has already threatened to do so several times, and the decision will primarily affect such important buyers as China, Spain and Egypt, according to Bloomberg. The price of wheat for September delivery rose 2.7 percent on Monday in early trade, but fell again, falling 1.1 percent.
The agreement, which was brokered by the United Nations and Turkey, ensures that ships loaded with grain are freely chartered in the Black Sea. Since the signing of the agreement at this time last year, about 33 million tons of different types of grains, mainly corn and wheat, have been transported from the Black Sea.
– The fact that Russia will not extend the grain agreement is unlikely to have a significant impact on world grain prices, says food economist Henning Otte Hansen at the University of Copenhagen to the TT news agency.
He says the situation is much better than it was a year ago.
– In the short term, this will lead to a slight decrease in the supply of grain on the world market and, accordingly, to a certain increase in prices. But it is unlikely that we will witness a new food crisis. He says we are in a much better place than we were a year ago.
Many countries had a good grain harvest, and there are more grains in global stocks than last year. In addition, supply chains with closed outlets are not affected by Corona as they were last year.
He also notes that grain prices often depend on energy prices, and that they are falling. And shipping rates are low.
– We will likely see a slight price drop at the top, says Ote Hansen.
The dollar falls further
Otherwise, the greenback is hovering at lows from last week, as the reported low (a) inflation figures in the US led to notable weakness. Bloomberg’s reference to the inflation figures has caused a new bevy of market players to bet that the US central bank now sees itself finished with an interest rate hike.
The dollar is still close to its weakest level in more than a year, and this has global consequences: import prices fall in a number of countries when the dollar weakens, a factor that relieves inflationary pressure for the economies themselves. (conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.
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