Kaohoon Morning Brief – 29 September 2021

1) Nasdaq dragged Wall Street down over high Treasury yields

U.S. stocks fell sharply on Tuesday as 10-year Treasury yields traded rose to near three-month high at 1.567% amid an unsettled debt-ceiling bill. Nasdaq plunged 2.83%, S&P 500 dropped 2.04% and Dow Jones decreased 1.63%.

 

2) Goldman and Nomura cut China GDP forecasts

Goldman Sachs and Nomura cut their forecasts for China’s economic growth in 2021 as factories are shutting down to comply with carbon emissions reduction targets to reduce production of coal and other carbon-heavy processes. Goldman revised the GDP down from 8.2% to 7.8%, while cutting the forecast from 8.2% to 7.7%.

 

3) Panic buying of gasoline in UK continues

U.K. currently is facing a shortage of heavy goods vehicle drivers, causing pumps to run dry. The shortage is believed to be the impact from Brexit.

The Petrol Retailers Association (PRA) estimated on Monday that up to 90% of stations in the U.K. were empty.

Meanwhile, Prime Minister Boris Johnson offered thousands of visas to foreign truckers to combat the shortage.

 

4) U.S. oil inventories rose unexpectedly

U.S. crude stockpiles unexpectedly rose last week by about 4.1 million barrels, which was in contrast to a draw of 2.3 million barrels by economists. Brent crude topped three-year high above $80 before closing lower at $79.09 per barrel. West Texas Intermediate fell to $74.33 a barrel.