Kaohoon Morning Brief – 5 October 2021

1) OPEC+ sticks to plan of 400,000 bpd in November

OPEC+ agreed at the Monday meeting resolved to stick to their output plan of 400,000 barrels per day (bpd) in November. Brent crude rose 2.5% to close at $81.26 per barrel. Meanwhile, West Texas Intermediate rose 2.29% to close at $77.62 per barrel. According to their plan, the group reached an agreement in July to ramp up their output by 400,000 bpd a month until at least April 2022 to offset 5.8 million bpd of production cuts during the early Covid-19 outbreak.

 

2) China Evergrande plans to sell property assets

China Evergrande is reportedly planning to sell about half of its property management business approximately worth $5.1 billion to its real estate developer rival in China, Hopson Development, to inject cash at a much needed time. Shares of Hopson Development and Evergrande were suspended on Monday in the Hong Kong Stock Exchange.

 

3) Facebook closed 5% lower after the outage

Facebook, Instagram and WhatsApp suffered a six-hour outage on Monday after several errors that led to the tech team to take it offline. This was the longest outage since 2008 for Facebook when the site crashed for about a day, affecting 80 million users. The share price of Facebook dropped nearly 5% on Monday.

 

4) Tech selloff plunged Wall Street over the night

Wall Street closed lower on Monday after a selloff in tech stocks amid a rise in U.S. Treasury yields, while the concern over debt default remained. The share price of APPLE, Microsoft, Amazon and Alphabet fell more than 2% as Nasdaq Composite dropped 2.14% to 14,255.49 points. The yield on the benchmark 10-year Treasury note rose near 1.49%. The yield reached 1.56% last week.