Final Reading of U.S. GDP Data Surprises Markets

Final Reading of U.S. GDP Data Surprises Markets: The final reading of the U.S. GDP data, released by the Bureau of Economic Analysis on Thursday,
showed that the GDP growth rate for the first quarter of this year was revised upward, aligning with market expectations.

 

Content
Details

 

 

 

Details

The data revealed that the U.S. GDP grew by 1.4% in the first quarter,
matching the anticipated 1.4% growth, up from the initial 1.3% growth reported for the previous quarter.

The GDP price index also grew by 3.1% in the first quarter, slightly above market expectations of 3.0%.

The press release highlighted that the increase in real GDP primarily reflected rises in consumer spending,
fixed residential investment, non-residential fixed investment, and state and local government spending,
partially offset by a decline in private inventory investment and an increase in imports.

Markets closely watch GDP data, which provides a clearer picture of the U.S. economy’s quarterly performance.
Positive data exceeding market expectations generally has a favorable impact on the dollar,
while lower-than-expected readings can negatively affect it.

 

 

Final Reading of U.S. GDP Data Surprises Markets

U.S. stocks close the trading session lower.

U.S. stocks close the trading session lower: In the last 30 minutes of Wall Street trading,
stocks erased their gains as investors rebalanced their investment portfolios following
a buying wave that increased their value by more than $4 trillion this year.

 

Content

Closing Trades

Economic Data

Central Banks

U.S. Stock Index

Market Movements

 

Closing Trades

Stocks closed lower for the third consecutive day, after a frenzied buying period
that saw the S&P 500 index rise by nearly 10% in three months.
According to recent estimates from Morgan Stanley,
Funds are expected to sell about $22 billion in global stocks and buy $17 billion
in fixed income to return to original asset allocation levels.
The U.S. stock index is on track to record five consecutive months of gains from November
to March, a feat accomplished only once in this century, in 2013.
Now, traders are debating whether the path will become more difficult
to continue rising as stock valuations remain relatively high compared to history.
“We still expect to see normal pullbacks along the way,” said Keith Lerner at Truist Advisory Services.
“However, until the weight of the evidence shifts, we suggest investors stay
with the primary market trend, which is up, and view pullbacks as opportunities.”
The data supports both arguments as the big debate continues
on how concentrated or broad this year’s S&P 500 rise has been, approaching 5200.
After the year began with gains focused on tech-heavy sectors,
the rally broadened to include other groups like commodities and industrials.
However, the contribution to total returns shows that 60%
of the gains in the index were driven by just six stocks:
Nvidia, Microsoft Corp., Meta Platforms Inc., Amazon.com Inc., Eli Lilly & Co., and Broadcom Inc.

 

Economic Data

As traders prepared for the Fed’s preferred inflation gauge on Friday – when markets will be closed
they analyzed the latest economic readings. U.S. consumer confidence remained steady,
durable goods orders rose, and home price growth accelerated faster since 2022.
“Expect market volatility in the coming quarters with mixed data
and questions about how long the Fed intends to pause,”

said Victoria Fernandez at Crossmark Global Investments.
We would not be surprised to see another rate cut priced out of the market, pushing yields slightly higher
from current levels, as economic data shows strength and current levels do not appear to be very restrictive.”

 

Central Banks

For stocks to justify their multiple expansion in recent months, global central banks must ease monetary policy this year.
According to Marko Kolanovic at JPMorgan Chase & Co, companies must deliver healthy earnings growth.
“Overall, if central banks turn out to be more dovish than currently projected,
but without this being accompanied by growth disappointments,
current equity multiples could be defended,” he wrote this week.
He added that equity multiples must fall if earnings disappoint and central banks are more restrictive.
Institutional, retail, and hedge fund clients of Bank of America Corp.
were all net sellers of U.S. equities in the week ended March 22,
while corporations buying their shares were the sole net buyers.

 

The U.S. stock index

The S&P 500 is on track to witness its fifth consecutive month of gains,
with a cumulative price return of about 25%.
The rise was supported by an economy that exceeded expectations,
future corporate earnings estimates that reached record levels,
technological leadership, and expectations that the Federal Reserve will begin to lower rates later this year,
according to Lerner at Truist.
“Strong price momentum, as we’ve seen over the past five months,
tends to occur during bull markets and is a sign of underlying strength,” he added.
While the markets seem to be stretching,
similar past periods of strength also tended to be positive when looking forward 12 months
with stocks rising every time and showing an average gain of 14%, Lerner added.
“Stocks have risen in the first quarter in anticipation of the first-rate cuts,”
said Anthony Saglimbene at Ameriprise.
“We have likely already entered a period where the Federal Reserve
is now less likely to surprise the market from here on out.”
Prices will likely continue rising until late March, given the lack of evidence of technical deterioration,
according to Mark Newton at Fundstrat Global Advisors.
“I continue to see the U.S. stock market as technically attractive,
and I do not feel there is enough risk to justify a sell-off at this time,”
Newton said. He concluded that a rise in the S&P 500 to 5350-5400
is possible until mid-April – before consolidation begins.


Market movements

Stocks
The S&P 500 was down 0.3%
The Nasdaq 100 fell 0.4%
The Dow Jones Industrial Average was virtually unchanged
Currencies
The Bloomberg U.S. Dollar Index was virtually unchanged
The euro was steady at 1.0830
The British pound was steady at 1.2625
The Japanese yen fell 0.1% to 151.58 against the dollar
Cryptocurrencies
Bitcoin fell 2% to $69,538.32
Ether fell 1.9% to $3,561.06
Commodities
West Texas Intermediate crude fell 0.6% to $81.49 a barrel
Spot gold rose 0.3% to $2,177.89 an ounce

 

U.S. stocks close lower

A new week full of events and market news

A new week full of events and market news: It is important to stay informed and informed of all major events, developments and market fluctuations

In this report, Evest provides you with insights and analysis of the most important market news


Content

Japan to double its budget reserves 

Retail sales in America

Tesla announces a price reduction for its cars in China

Gold rises today

 

Japan to double its budget reserves

 

The Japanese government plans to double its budget reserves  to 1 trillion yen ($6.9 billion) in the next fiscal year,
Prime Minister Fumio Kishida said on Sunday.

Kishida announced the plan after visiting a region in northwestern Japan hit by a strong earthquake earlier this month.

 

Retail sales in America

US retail sales data are expected to be closely watched on Wednesday for signs that consumer spending,
the main driver of economic growth remains resilient amid rising interest rates.

Retail sales are expected to increase by 0.4% in December, after a 0.3% increase in November.

Data on housing starts and existing home sales are expected to reveal difficulties facing
the housing market in the face of rising borrowing costs.

 

Tesla announces a price reduction for its cars in China

Tesla announced a reduction in the prices of some of its versions in China.
The price of the Model 3 has been reduced by 5.9% to 245,900 yuan (about $34,300).

Model Y’s price has also been reduced by 2.8% from 266,400 yuan to 258,900 yuan.

The price of the Chinese-made Model 3 was reduced to 285,900 yuan,
while the price of the Chinese-made Model Y was reduced to 299,000 yuan.
At the same time, China’s regulatory body announced that Tesla will recall about 1.6 million cars in China
due to problems with the power steering system device. The recall includes Model S, Model 3, Model X and Model Y.
Tesla is working to resolve the issue immediately and plans to release over-the-air (OTA) updates to affected users

 

 

Gold rises today and breaks the 2050 barrier

The price of gold rose today, surpassing the $1950 level, and breaching the 2050 levels.
Gold is benefiting from some geopolitical turmoil that has arisen in the Red Sea,
with Britain and the United States announcing a continuing campaign of air attacks against the Houthis in the region.

fueled by expectations of an interest rate cut this year, Gold increase
investors are accumulating bets on a 166 basis point cut in interest rates this year, exceeding the 150 basis point cut bets last Friday.

 

 

A new week full of events and market news

How will the markets be affected by U.S. inflation data

How will the markets be affected by U.S. inflation data and the potential shock that may unsettle the Federal Reserve: Jerome Powell, the Chairman of the U.S. Federal Reserve, presented his views at the last December meeting on the central bank’s success in taming high inflation rates,
which dropped to 3.1%. This led Powell to suggest the possibility of the Fed starting to taper within the current year.

 

Topics

How upcoming inflation data will be interpreted?

Higher-than-expected U.S. inflation

Lower-than-expected U.S. inflation

A shock that may unsettle the U.S. Federal Reserve

 

How upcoming inflation data will be interpreted?

 

On Thursday, the markets await the annual U.S. Consumer Price Index (CPI) data, with experts anticipating a positive reading of around 3.2%,
compared to the previous reading of 3.1%. The monthly CPI is also expected to show a positive reading of around 0.2%, compared to the previous 0.1%.

 

Higher-than-expected U.S. inflation

A resurgence in U.S. inflation above expectations would qualify the ongoing upward trend of the U.S. dollar that began this year.
This is because expectations at that time would focus on the possibility of the Fed starting the taper late in the current year.


Lower-than-expected U.S. inflation

 

The idea of a decline in U.S. inflation strengthens the position of the U.S. Federal Reserve.
Faced with the scenario of an early reduction in high interest rates, this could potentially negatively impact the pricing of the U.S. dollar index.
On the other hand, we might witness positive movements in gold.

 

A shock that may unsettle the U.S. Federal Reserve:

 

After Jerome Powell raised the issue of reducing U.S. interest rates, which reached 5.50% by the end of 2024,
markets began to anticipate the taper starting in late March of the coming year.
However, the recent positive U.S. employment figures contributed to lowering those expectations.
, the markets eagerly await Consumer Price Index data, reflecting U.S. inflation levels.
annual consumer prices rise above 3.2%, it could signal a return to rising inflation with an acceleration.
This might prompt the Federal Reserve to taper later in the current year
or start at the end of 2024, potentially causing clear damage to the U.S. economy, especially with the extended period of keeping interest rates high.
Conversely, we may see a decline in economic growth rates, with the Federal Reserve expecting 1.4% growth during the current year.


How will the markets be affected by U.S. inflation data?

Week a head full of news and events

Week a head full of news and events: Market Volatility and economic events are ahead, this  report will update you with the most important events ahead and the most important news

 

Topic

The most important event this week

British pound against the US dollar

Oil

Gold

US dollar against Japanese yen

Nasdaq

 

 

The most important event this week

Monday, January 8th

Switzerland- Swiss Consumer Price Index (CPI)

Switzerland-Swiss Consumer Price Index (CPI) MoM

Thursday, January 11

Consumer Price Index (CPI) YoY-USA

The Consumer Price Index (CPI) MoM-USA 

Initial Jobless-USA 

Friday, January 12

China – China Consumer Price Index (CPI) YOY

UK-Gross Domestic Product (GDP) MoM

USA-Producer Price Index (PPI) YoY

USA-Producer Price Index (PPI) MoM

 

British pound against the US dollar

 

The dollar achieved weekly gains of 1.08% positive labour market data in the United States,
due to the optimism of the market about the US Federal Reserve
maintaining the current interest rate for  longer than expected
and sufficient to return inflation to the central bank’s target,
which provided strong support for the US dollar’s movements in the currency market,
outperforming its major counterparts.

 

Bullish scenario

The GBPUSD is moving between the support level of 1.2500
and the resistance level of 1.2826 and the highest rising trend line since last November.
The technical outlook for the pair is still bullish on the long-term
time frames given that the price is above the 200 moving average,
But in the short term, we still see bearish price action, since the pair failed to make a new high for 2023 in December.

If prices rise above the sub-resistance level of 1.2750,
it will push the pair to rise further to the main resistance of 1.2826, reaching the level of 1.3000.

Bearish scenario

However, if prices fall again below the minor support level of 1.2650,
this will likely push prices further to the main support of 1.2500.

 

Oil

Oil prices rose in last week’s trading session, achieving their first weekly gains in 2024,
aftermarket sentiment improved about the possibility of a recovery
in American demand for oil in the coming period,
especially after data from the US Energy Information Administration
revealed the positivity of oil inventories within the United States, and data was also raised.
The American labour market is better than expected.
The markets are optimistic about the strength of the labor market
and consequently the economic growth in the United States,
which occupies first place among the countries that consume the highest crude oil. Consequently, crude oil prices eventually rose.

Bullish scenario 

Oil prices moved in a narrow range during last week’s trading between the levels of 70 to 74 dollars,
forming an ascending triangle pattern that penetrated upward
coinciding with closing above the falling trend line since last October,
and below the resistance level of 76.04. If it is penetrated upward, it will be a signal to reach the resistance level. 80.00

Bearish scenario 

However, in the event of a return again below the pivotal level of 73.50,
this will push prices to fall again to the support level of 70.00,
and in the event of closing below with deep momentum,
it will be an indication of a further decline to the main support of 67.11.

 

 

Gold

After the US labour market data last Friday provided clear positivity through the jobs
that were added to the private non-agricultural sector by recording 216 thousand jobs instead
of expectations that indicated 177 thousand jobs, unemployment also stabilized at approximately 3.7%
instead of expectations that indicated an increase of approximately out 3.8%,
on the other hand, it showed an increase in wage rates and the provision of 0.4% instead of 0.3%,
which indicates the idea that the US Federal Reserve will begin reducing interest rates late this year,
which may contribute to a possible strength of the US dollar index and, in return, a negative movement for gold.

Bullish scenario 

What is important in the positive purchasing scenario is the confirmation of the strength
of the rebound from around the support and the rising bottom in the areas of 2033.80 to 2016.63 dollars,
and among the criteria for an increase in the possibility of a return of strength to buyers
is the break of the descending digital channel in addition to breaking
the horizontal resistance of 2060.29 dollars to the top.

The aforementioned technical condition was achieved at the time,
giving preference to a rise in prices and targeting the levels of $2089.14 to $2104.26,
by breaking it is possible to target $2148.58.

Bearish scenario

In the selling scenario, we rely on prices being below the descending digital channel,
in addition to prices being below the horizontal resistance of $2060.29.

With a directional movement on frames (30 minutes to 15 minutes),
it will support the idea of a decline in prices to target the $2016.63 levels, and
by breaking them and trading below them, the next target will be around the $1972.33 levels.

 

US dollar VS Japanese yen

A fateful week awaits the financial markets to read the data on US inflation rates for December.
The markets are anticipating and speculating about the date of starting
to reduce interest rates through US consumer price data.

Experts expect annual consumer prices to rise to 3.2% instead of the previous reading of 3.1%,
while monthly core consumer prices are expected to decline by 0.2% instead of 0.3%.
it is noteworthy that a decline in inflation will lead to an early reduction in interest rates,
and vice versa if inflation rises again. Others may add, in one form or another,
a continuation of the tightening, even if it is maintained for a longer period by the US Federal Reserve.

Bullish scenario

Through the positive scenario, which depends on the idea
of prices exiting the descending digital channel and prices trading positively,
it may continue, especially after prices take an upward directional movement.

With touching the bullish technical trend line,
it will likely coincide with the horizontal digital support level around 142.55,
an opportunity to rise and target the 146.30-148.15 levels.

Bearish scenario

Through the selling scenario, which reacts by breaking and stabilizing prices
below the existing digital support around 142.55,
then we will have a downward directional movement and ensure a strong return for sellers.

If the technical condition is met, prices will have an opportunity to target 140.70 levels,
and if prices break them and hold below them, the next target will be 138.95.

 

Nasdaq

The American markets witnessed some downward corrections during last week’s  trading
after the partial return of strength to the US dollar’s trading,
especially with the improvement in US job numbers again,
but the positive outlook remains for US stocks due to market expectations of more than 70%
that the Federal Reserve will reduce interest rates next in March,
which will reflect negatively on the dollar and positively on the American stock markets

Bullish scenario

The Nasdaq index is trading around the 16305 level after the downward correction
from the peak, it achieved around the 16975 levels,
as the index is trading near the turn-taking areas around the 16183 levels,
which is expected to push it upward again if behaviour seeking a reversal appears around those levels.

Bearish scenario

The Nasdaq may continue bearish trading if it breaks the 16183 levels
and closes below them in a trading session, and at that time,
the declines may continue to target the support centred around the 15700 levels.

 

Week a head full of news and events

TimeOut Market in the GCC

TimeOut Market in the GCC, As an investor, it is always exciting to see a brand that has been around for over 50 years grow and expand into something even bigger.

 

Topics
Time Out History
Investing in the Foodie Culture
Exploring and Experimenting The New Markets
Diriyah Square the new Time Out Hub

 

 

 

 

 

Time Out History

 

The TimeOut magazine was first published in 1968 by Tony Elliott with Bob Harris as co-editor,
and since then the magazine has developed into a global platform across 315 cities and 58 countries.
What started as a counter-culture publication quickly grew to become one of the most popular magazines out there with its weekly circulation reaching 110,000!

TimeOut’s success didn’t stop there – they expanded their brand to North America in 1995 followed by TimeOut New York Kids in 1996. This led them on their path of expansion worldwide which included travel magazines, city guides, books etc., all under the same name – “TimeOut”.

It is incredible how this company was able to withstand print competition while also integrating digital platforms during the online revolution; this shows great foresight from the management team at TimeOut which makes investing in them a very attractive option indeed!

 

Under new management, the firm grew the brand digitally by forming alliances with software companies to build a unified web platform for the brand and multi-city mobile applications.
In July 2012, the firm continues to expand digitally by releasing an iPad app for New York and London.
MasterCard initially sponsored the iPad app.

 

 

Investing in the Foodie Culture

 

It’s no secret that the food industry is booming in Dubai and Abu Dhabi,
with a range of innovative concepts emerging to meet the demand for quality dining experiences.
Last year, TimeOut Market Dubai brought 17 of the U.A.E.’s top chefs together under one roof
to create an upscale food hall concept like never before seen in this region
and it looks set to be just as successful when its sister venue opens in 2025: TimeOut Market Abu Dhabi!

 

As investors, we know how important it is to stay ahead of trends;
so what makes these two markets stand out?

Firstly, they combine diverse cuisines from around the world into one location
meaning customers have access to multiple culinary options all at once!

 

Furthermore, each chef has been carefully selected based on their unique style
and expertise ensuring that only high-quality dishes are served across both venues.
And last but not least importantly both locations will offer diners entertainment options
such as live music performances or cooking classes alongside their meals,
creating a truly immersive experience unlike any other!

 

We believe that investing now could potentially generate huge returns over time
due not only due to these exciting features but also because there’s still room for growth
within this sector here in UAE as more people become aware of these new developments
taking place across cities like Dubai & Abu Dhabi.

So, if you’re looking for a lucrative investment opportunity with long-term potential,
then look no further than TimeOut Markets – your gateway into deliciousness awaits you today!

 

 

 

 

 

Exploring and Experimenting The New Markets

 

For investors looking for exposure to new markets or those interested
in capitalizing on emerging trends such as experiential dining concepts
TimeOut Markets offer a unique opportunity across multiple cities around the world.
With its focus on authentic experiences rooted in culture,
it provides an attractive proposition for customers who are seeking something different from traditional restaurant chains
can provide them with; creating repeat business opportunities that drive long-term growth potential for investors involved.

TimeOut Markets have seen tremendous success since launching their first location over 5 years ago
now boasting more than 10 million visitors annually at all current sites combined – making it one of the fastest growing food hall concepts globally today! We look forward to seeing what Riyadh has up its sleeve when they open later this year.

TimeOut Market has announced the exciting news that they are expanding their food hall concept to Riyadh, Saudi Arabia! This marks another milestone in TimeOut Market’s Middle Eastern expansion and is sure to be a hit with both locals and visitors alike.

 

 

Diriyah Square the new Time Out Hub

 

Riyadh will join existing locations in Abu Dhabi, Dubai, Beirut, Lisbon, and Miami as well as upcoming openings planned for Montreal later this year. Each location offers an incredible selection of local cuisine from some of the city’s best chefs alongside cultural experiences including live music performances by local musicians.

We are excited to announce that Diriyah Square, one of the largest and most ambitious projects in Saudi Arabia, is set to host TimeOut Market Riyadh. This new development will be a place for locals and tourists alike to experience some of the best food, art, culture, and entertainment that the region has to offer.

 

TimeOut Market Riyadh will feature 23 kitchens offering cuisines from around the world as well as five beverage service spots with local craft beers on tap. There will also be multiple stages for live music performances in addition to event spaces where visitors can enjoy interactive workshops or exhibitions showcasing regional talent. The market’s demonstration kitchen provides an opportunity for budding chefs or entrepreneurs looking into starting their own restaurant business while its Kitchen Academy offers culinary classes taught by experienced professionals who have worked at top restaurants around the globe.

Diriyah Square is committed not only to providing a unique shopping experience but also to creating jobs within this sector; it estimates over 1 million people each year could benefit from employment opportunities created by TimeOut Market Riyadh alone! With such an array of activities available there really is something here for everyone – whether you want to try out delicious dishes from all corners of the earth or just relax with friends over drinks – it promises plenty of fun-filled days ahead!

 

 

Hints of ending QE program hitting Wall Street and rising inventories pressure on oil

Hints of ending QE program hitting Wall Street and rising inventories pressure on oil

Hints of ending QE program hitting Wall Street and rising inventories pressure on oil :It’s not usual for September to be the strongest for the US stock market.

The statistics published and the situation with the public debt “ceiling” do not contribute to an increased level of investment optimism. 

The Converse Broad consumer confidence index fell for the third month in a row in September.

Gas prices set records, but these prices will contribute even more to rising inflationary pressures.

In September, the number of recipients of $2000 in checks in the US fell dramatically, but some of that money stemmed from the growth of the US stock market.

Evest follows all this and more in the following report:

topics:

Hints of ending QE program

Record declines on Wall Street

Oil inventories are rising sharply

Chinese authorities are interfering with the Evergrande crisis

Decline in Asian markets

 

Hints of ending QE program

The resounding remarks of FRS representatives had the effect of causing tension in the markets.

The chairman of the Federal Reserve Bank of St. Louis said the Fed must act more effectively to tackle inflation.

He did not rule out the possibility of two base rate increases in 2022. 

The Chairman of the United States Federal Reserve, Powell, announced the Fed’s willingness to end its quantitative easing program.

A tighter monetary policy would hurt tech stocks the most.

The United States Department of the Treasury will be able to meet its financial obligations without raising the US national debt limit until around October 18,

and therefore, this situation will gradually escalate. 

US Treasury Secretary Janet Yellen said that if the debt limit was not resolved, America would default for the first time in history.

The full confidence and creditworthiness of the United States will fade, and the country is likely to face a financial crisis and economic recession. 

However, according to experts, Republicans do not want to cooperate,

and this will have a negative impact on the situation in the stock markets in the coming days.

The Chairman of the Federal Reserve Board of the Banking Committee reiterated his willingness to close the stimulus program soon,

contributing to the dollar rising to its highest level since November 2020. The strong dollar was a reason to fix profits, for the commodity speculators.

 

Record declines on Wall Street

US stock indices declined 1.6-2.8% on Tuesday, the Nasdaq fell by -2.8%, the highest since March 18,

and the Dow Jones (-1.6%) fell for the first time in five trading sessions.

Maximizing the yield on government bonds since June negatively affects the stock market (the yield on the 10-year terrestrial reservoirs exceeded 1.5% annually),

as well as the growth in the cost of energy resources.

US Treasury Secretary Janet Yellen said her department’s funds could run out by October 18 if Congress does not increase the borrowing limit.

Federal Reserve Chairman Jerome Powell said the regulator met almost all the criteria for starting a rollback of stimulus procedures.

He said that inflation in the United States is likely to continue rising in the coming months, but then slow down.

The Chairman of the Federal Reserve Board said that rising inflation,

caused by problems in supply chains and other factors associated with the recovery of economic activity

after the Coronavirus pandemic, turned out to be longer and more important than expected.

Oil inventories are rising sharply

Oil prices continue to decline on Wednesday morning amid renewed concerns about the pace of global economic recovery under the Coronavirus pandemic after oil inventories increased.

On the eve of Brent crude price, its price rose to $80.75 per barrel – the highest level in 3 years.

The statistics of the American Petroleum Institute added a slightly negative sentiment,

showing an increase in crude oil inventories by 4.1 million barrels, and gasoline – by 3.6 million barrels,

and distillates products – by 2.5 million barrels. 

If statistics from the United States Department of Energy were released on Wednesday, another reason for the decline in oil would appear. 

Also negative for raw materials is the reduction of the Chinese economy’s outlook for this year from leading banks because of risks in the real estate sector and the energy crisis. 

As oil is in the peak purchasing zone, the deadlock may continue to decline, although the $75 per barrel support for Brent crude remains appropriate.

Chinese authorities are interfering with the Evergrande crisis

Chinese authorities intervened to help Evergrande and bought 20% of its stocks in Chengjiang Regional Bank for 10 billion yuan ($1.55 billion). However, t

he troubled developer’s creditors are not likely to receive these funds.

One of China’s biggest real estate developers, China Evergrande, which faced debt problems and low liquidity,

announced that it would sell Chengjiang Bank stocks to the State Administration Corporation for $1.5 billion.

The company’s stocks ratio is 11.6%.

Decline in Asian markets

The negative dynamics of stock indexes also prevail in Asia on Wednesday, with Japan’s Nikkei index fell by 2.1%,

China’s Shanghai composite by 1.7%, and Hong Kong’s Hang Seng index rose by 0.6%.

Investors in the region are worried about a slowdown in the expected growth rate of the Chinese economy,

which is facing an energy crisis. Goldman Sachs economists expect China’s GDP to rise by 7.8% in 2021, down from 8.2% in previous projections. 

Earlier, Nomura Bank and rating agency Fitch also cut their expectations for an increase in the Chinese economy.

The country’s energy supply crisis is associated with the fact that some regions of China are facing a real electricity shortage amid a sharp jump in the price of coal and natural gas,

while others are demanding that companies provide electricity in order for the government to achieve emissions reductions. 

As a result, Chinese producers warned that strict requirements to reduce electricity use would lead to a decline in production in the country’s major economic centers.

On Wednesday, the People’s Bank of China (PBOC) the provided country’s banks with Part IX of the cash for 100 billion yuan

in reverse buyback to ensure adequate liquidity in the banking system.

The Central Bank of China said in a statement that the 14-day interest rate on transactions was 2.35% per year.

Investors are also watching the election of a new prime minister in Japan,

which will be held in the ruling Liberal Democratic Party on Wednesday.

Yesterday, the Associated Press reported that Japan would abolish the emergency regime introduced in connection with the Covid-19 pandemic as of October 1, and gradually lift the restrictions.