Equities Globally Railing on Short Term Outlook and Corporate Earnings Growth

Global equity markets are railing on lower rates supporting valuation despite Federal Reserves’ “transitory” inflation concern and eventually tightening of monetary policy.

U.S. equities are supported by corporate earnings growth. Futures in the U.S. are trading on a optimistic note with Dow Jones 30, S&P 500 and Nasdaq 100 up by 0.10%, 0.15% and 0.46% respectively.

Asian equites advanced with Nikkei supported by confirmation of stimulus package inched up by 0.50%, CSI300 inched up by 1.08% as investors priced in softer regulatory tone and KOSPI closed climbing up by 0.80%. However, Alibaba’s earnings dampened earnings outlook for HSI, index dropped by 1.07%.

U.K. announced retail sales on Friday which came in better than forecasted dropping by 1.9% compared to the same period last year vs. forecasted -3.1%.

European Central Bank President Christine Lagarde said on Friday, inflation in the Eurozone will fade and a tightening of policies would constrain economic recovery. She also hinted continued bond purchase next year.

The dollar extended its strengthening trading at 96.01.

Investors priced in coordinated release of strategic crude oil reserves on the rationale of less likely to make much impact, WTI trading at $78.38 and Brent at $80.30. Both benchmarks of crude oil inched down slightly from upward gains. A slow supply response from oil producers would only lead to further upward risk for oil prices.

The global crypto space saw a broad market selloff with Bitcoin dropping to the price level of $56,000. Traction for funding increased in the crypto space with Binance may raise $100 million in couple of months and Bitcoin mining company Bitdeer merged with a SPAC to get listed in the Nasdaq.

*Note: All quotes are as as of Thailand time 17:02 hours