⌛️Equity Markets Focus

Stock markets continued to trend downward despite early market gains. However, this was pared down as investors took risks off the table given a wide range of incoming data and the Evergrande saga unfolds that may provide surprise to the market.

Pika World continues to believe that the equity market will see firmer ground once key events pass this week as economic fundamentals remain healthy and the Chinese government, while unlikely to provide a direct bailout, will not want to see an economic fallout from the collapse of the property giant.

🚙Uber: The Shine is Coming

The rider hailing company had a good week as it provides a possibility of turning into profit for the third quarter. In its latest 8-K filing, the company showed improvements in the mobility and delivery business segment.

This is a classic example of how a crisis like the pandemic gave Uber new opportunities in the past 18 months, which saw growth towards profitability.

🧰A Bleak Result of Covid Death

It is official. The number of Americans killed due to Covid-19 had surpassed that of the 1918 influenza pandemic. The death figure hit over 675,000. New cases have been surging rapidly since July, and deaths began surging from late July as the contagious Delta variant looms around the population.

As the number of cases starts to stabilise, there is some glitter of hope that a new chapter of recovery is on track. Nonetheless, while it is encouraging to see a fall in new cases, hospitalisation and reported deaths are still increasing.

President Biden is chasing time to increase the number of workers vaccinated to two-third. Undoubtedly, the economic trajectory is still highly dependent on the wild card-how Covid cases will evolve with time.

🚘Didi: Dismiss the Rumour

Shares of the company remain on firm footing after releasing a statement that the co-founder and president aren’t stepping down from the group. There had been a rumour that Jean Liu intends to step down, and the company is to be taken control by the Chinese government with a new management team.

The stock has been under pressure for the past few months since its IPO, which tumbled by more than 45%. The broader crackdown saw in the tech sector, and US-listed companies continued to weigh on the stocks as investors remain uncertain of the next course of action against the company.

📮What’s on the Menu Today?

At 10 pm, we will receive the Existing Home Sales, which is expected to stay stable at 5.89M compared to 5.99M in the prior period.

10.30 pm will bring us to the Crude Oil Inventories, which we expect a smaller drawdown of 2.4M.

From 2 am onwards, we will have the FOMC Economic Projection and statement coupled with a press conference. It is likely to be a market mover as investors await the Fed perspective of the current economic conditions that could shape the time of tapering and possible interest rate take off from the end of 2022 onwards.

It is 22 September, Wednesday, at 6.55 am in Singapore and 6.55 pm in New York. Pika World wishes all friends a safe and fruitful trading week.