America’s Markets Close Week on Mixed Note
Last week ended with American markets closing on different sides of the zero line. Fed Governor Christopher Waller announced on Friday that inflation had decreased at a faster rate than expected. He referred to data on consumer and producer prices, showing inflation falling below 1.8% in recent months. Waller also expressed satisfaction with the decision to lower the benchmark interest rate by 50 basis points. The S&P 500 dropped by 0.2%, Nasdaq Composite fell by 0.4%, and the Dow Jones Industrial Average rose by 0.1%.
Commodity Performance
- Oil prices declined after several days of positive movement due to Russia’s increased exports of refined oil products, up nearly 10% in the first half of September compared to August. Drone attacks from Ukraine on Russian refineries have impacted the country’s oil exports, which have decreased by 30% since the beginning of summer.
- The number of active oil rigs in the US remained steady at 488 last week.
- WTI crude oil decreased by $0.9 to $71.1 per barrel, while Brent oil dropped by $0.3 to $74.6 per barrel.
Metal Market Highlights
- Zinc experienced the most significant decline, dropping by 2.5%, followed by aluminum at 2.1% and lead at 1.9%.
- Copper fell by 0.6%, while tin and nickel increased by 0.5% and 0.8%, respectively.
- Gold prices added $32.8 to reach $2,619.3 per ounce.
Company News
Chip developer Qualcomm and chip manufacturer Intel were in focus on Friday, with reports suggesting Qualcomm’s potential acquisition of Intel. Qualcomm’s stock fell by 2.9%, while Intel’s rose by 3.3%. Logistics giant FedEx plummeted by 15.2% after a weak quarterly report and a profit forecast downgrade for the year to $20-21 per share from $20-22.
Market Movements
The ten-year US Treasury bond yield increased by 3 basis points to 3.74%.
Global Market Update
Asian markets started the week on a positive note, with the Hang Seng up by 0.3% and the Shanghai Composite Index trading 0.6% higher. The Tokyo Stock Exchange is closed today.
Domestic Market News
JP Morgan lowered Sandvik’s target price to 215 kronor, HSBC raised H&M’s target price to 190 kronor, and Pareto Securities reduced Autoliv’s target price to 1,275 kronor.
Upcoming Economic Events
Germany will release its industrial Purchasing Managers’ Index at 9:00, followed by Taiwan’s unemployment figures an hour later. The Swedish Employment Agency will provide weekly statistics at 12:00, and the US will release the Chicago Fed Index at 14:30.