• About
  • Privacy & Policy
  • Contact Us
Procurement Nation
  • Home
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
  • Cryptocurrency
No Result
View All Result
  • Home
  • Procurement
    • Shipping
    • Best Procurement Software
    • Supply Chain
      • What is supply chain management?
      • Tyson Foods Food Supply Chain
  • Markets
  • Banking
  • Contact Us
  • Cryptocurrency
No Result
View All Result
Procurement Nation
No Result
View All Result

GRAPHIC-Take Five: Earnings, yields and COVID-19

Mark White by Mark White
January 7, 2022
in Supply Chain
0
REFILE-India’s IOC buys its first cargo of Iraqi Basra Medium oil – data, source


It didn’t take long for speedbumps to appear as markets rev up for 2022. Rising U.S. Treasury yields, sparked by growing speculation the Federal Reserve could start its rate hike cycle as early as March have doused early enthusiasm, just as the U.S. earnings season is about to kick off.

And unrest in Kazakhstan has put geopolitical risks back on the agenda, while China battles to keep its zero COVID strategy on track ahead of the Winter Olympics.

Here’s your week ahead in markets from Tom Westbrook here in Singapore, Lewis Krauskopf here in New York and Dhara Ranasinghe here, Tom Wilson here and Karin Strohecker here in London.

1/QUARTERLY CHECK UP

Massive profit increases from U.S. companies helped fuel last year’s 27% gain in the S&P 500. As the earnings season kicks off in coming days, companies will likely have a difficult time posting similar numbers for the fourth quarter.

Earnings for S&P 500 companies are expected to jump 22.3%, according to Refinitiv IBES — a robust increase, though a lower clip than in the first, second and third quarters.

Big Wall Street banks JPMorgan, Citigroup and Wells Fargo will be first in line to report. Investors are keen to hear about inflation, whether companies believe the supply chain bottlenecks that helped drive prices up last year will ease in coming months and forecasts for 2022. S&P 500 profit growth is expected to slow to 8.4% from 49.7% in 2021.

2/HOW HIGH?

The first week of trading in 2022 has been anything but dull for the world’s biggest bond markets. Short-dated Treasury yields shot up to highs not seen since early 2020, 10-year yields are up over 20 bps, Germany’s -0.06% Bund yield is lurching closer to 0% and sovereign borrowing costs here from Britain to Australia are at multi-month highs.

The message is clear: tighter monetary policy is likely sooner than anticipated, with the United States leading the way here. Until data or central bank speak contradicts this, 10-year Treasury yields could reach the 2% milestone soon.

Investors will also keep a close on real yields since a view that inflation-adjusted yields will remain low has fueled the risk asset rally here. The first week’s 30 bps jump in U.S. real yields may not make for a happy new year for some.

3/NEW YEAR, OLD RULES

For millions in China the new year began as the old ended – under lockdown here. COVID-19 cases are few, particularly of the Omicron variant, but restrictions are spreading fast as authorities keep a zero-tolerance policy before next month’s Winter Olympics here.

Xian is more than two weeks into a lockdown and harsh rules are rolling out across central China. All 400,000 residents of Yongji, in Shanxi Province, were ordered to remain indoors this week after the virus was detected on a railway turnstile.

The measures could render moot any further easing of zooming producer prices in December data due on Wednesday, especially if they trigger fresh supply-chain disruption here around the world.

4/KAZAKHSTAN AND BEYOND

Deadly protests in Kazakhstan – the worst violence in its 30 years of independence – have added to the list of flare ups in the region being felt well beyond its borders.

Once again, Russia plays a key role. The Kremlin deploying troops here is widely seen as a gamble to secure its interests in the oil and uranium-producing Central Asian here nation.

Reverberations are felt throughout commodity markets and weighed on the rouble as Russia finds itself again in the limelight — tensions over Ukraine have loomed here large over its markets. The outcome of unrest in Kazakhstan here is yet unclear, but markets will have to sift through the fallout for geopolitical risk and diplomatic alignments for some time to come.

5/BITCOIN HANGOVER

After a wild 2021, bitcoin’s new year hangover has lingered here into the first week of 2022 – and might get worse.

The computing power of its network dropped sharply this week as Kazakhstan’s internet was shut down during its uprising, hitting its cryptocurrency mining industry here – the second biggest in the world.

The drop in bitcoin “hashrate” might, in theory, hit its price. The more miners on the network, the greater the amount of computing power needed to mine new bitcoin. If miners drop off the network, it becomes easier for the remaining miners to produce new coins – in theory boosting supply.

Bitcoin has fallen below $41,000 to its lowest since late September with hawkish signs from the Fed adding to the malaise. Some see it slipping further into the $30,000-range. Crypto investors will be searching for signs bitcoin can get off the ropes.

Compiled by Karin Strohecker; Editing by Toby Chopra



Source link

Previous Post

Trucker Snarl in East China Hits Container Shipping From Ningbo – Bloomberg

Next Post

Explainer: How Indonesia, the world’s top thermal coal exporter, hit a supply crunch

Mark White

Mark White

Next Post
Explainer: How Indonesia, the world’s top thermal coal exporter, hit a supply crunch

Explainer: How Indonesia, the world's top thermal coal exporter, hit a supply crunch

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 111 Followers
  • 65.3k Followers
  • 168k Subscribers
  • 23.5k Followers
  • 99 Subscribers
Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
The main 10 absolute best extravagance SUVs on sale

The main 10 absolute best extravagance SUVs on sale

May 27, 2022

Shares of Workhorse Group Inc. WKHS, -10.25% slumped 0.62 %to $3.22 Friday

May 22, 2022
Most Pricey Luxury Hotels worldwide

Most Pricey Luxury Hotels worldwide

May 22, 2022

5 things to recognize prior to the stock market opens

May 18, 2022

Recent News

The main 10 absolute best extravagance SUVs on sale

The main 10 absolute best extravagance SUVs on sale

May 27, 2022

Shares of Workhorse Group Inc. WKHS, -10.25% slumped 0.62 %to $3.22 Friday

May 22, 2022
Most Pricey Luxury Hotels worldwide

Most Pricey Luxury Hotels worldwide

May 22, 2022

5 things to recognize prior to the stock market opens

May 18, 2022
  • About
  • Privacy & Policy
  • Contact Us
Call us: +1 234 JEG THEME

© 2021 Procurement Nation - Supply Chain & Logistics News

No Result
View All Result

© 2021 Procurement Nation - Supply Chain & Logistics News