Did the legal pressure have an effect? Elon Musk announced on Twitter that he intends to restart the purchase of the company for $44 billion• OPEC Plus announced the sharpest output cut since the corona epidemic . Wall Street had an amazing start to the week and swept the rest of the markets after it, then the declines returned
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| 5 things you should know about what is happening in the foreign exchange market |
1. The Elon Musk-Twitter deal is back on the table
The founder and CEO of Tesla and the richest man in the world, Elon Musk, surprises everyone again. Last Tuesday, it was reported on the major financial websites that Musk intends to return to the initial plan for the purchase of Twitter at a value of $54.2 per share - reflecting the company's value of $44 billion. In response to the report, the stock jumped 22% after trading in it was briefly halted.
The two sides devolved into legal proceedings after Musk asked to withdraw from the initial agreement between them, with hearings scheduled to begin on October 17.
According to various reports, Musk's chances of losing in the legal process are what led him to announce the restart of the deal.
2. Wall Street recorded two record days, and returned to declines
The leading indices on Wall Street recorded on Monday and Tuesday the two best days in two years. On Tuesday, the Dow Jones climbed 2.8%, while the Nasdaq and the S&P 500 rose more than 3%.
Following them, the indexes in Europe and Asia also climbed to daily highs not seen for a long time. Hong Kong closed this morning up nearly 6% after returning from vacation.
But the optimism was short-lived. Today's trading in Europe ended with decreases of about 1 percent in the DAX and KAC indices and Wall Street also opened with red screens. After a brief recovery, the Dow Jones closed down 0.1%, the S&P500 down 0.2% and the Nasdaq down nearly 0.25%.
The increases in the US and around the world at the beginning of the week are apparently the result of a number of events, including the US manufacturing activity report which presented figures lower than forecasts.
There are those in the market who probably hoped that this would cause the Fed to slightly slow down the rate of sharp interest rate increases.
By the way, the first glimpse of a moderate interest rate increase than expected can be found in Australia, where the central bank raised the interest rate by a quarter of a percent and not by half as expected by the market. On the other hand, Romania made a sharper increase than expected.
3. OPEC Plus countries announced a cut of two million barrels
The organization that represents the countries that produce oil, OPEC Plus, announced a cut of two million barrels per day - the sharpest since 2020. In Washington, they were furious and tried to exert pressure in order to prevent the evil of the decision that may jump again the price of the black gold.
Despite the fact that this is a significant reduction, the actual impact on global supply will be smaller as some countries are already pumping below their quotas.
And yet, for the American government this is very bad news on the eve of the mid-term elections and its people tried to pressure the people of the organization to avoid such a sharp cut. A new wave of price increases may hurt US President Joe Biden. Meanwhile, these pressures seem to have failed.
The talks about the possibility of the cut have meanwhile boosted the prices after they had been falling steadily since June. A barrel of Brent is now priced at close to $93, an increase of about 5% compared to last week.
4. World trade is on the way to slowing down
The World Trade Organization predicts a slowdown in trade next year as a result of "multiple shocks". Starting with the Russia-Ukraine war, the high energy costs in Europe and the tightening of the US monetary policy. All of these raise production costs and squeeze households around the world. The organization's updated forecast is for growth of only 1% next year. However, the organization updated the The current forecast for the current year is upwards from 3% to 3.5%.
The updated forecast is in line with the forecasts of the IMF and the OECD. All of them mark a significant slowdown from last year's 9.7% growth in world trade.
5. The U-turn of the Prime Minister of Great Britain drops the pound
The pound is falling after the Prime Minister promised to steer Britain "through the storm" in a speech at the Conservative Party conference held today.
The pound jumped in overnight trading on Monday, after it was announced that the British government is going back on the decision to cut taxes for Britain's richest. This is after severe criticism from the party on the mini-budget of the new British Prime Minister, Liz Truss, and her new Finance Minister, Kwasi Kwarteng, which was published about two weeks ago.
Today, however, following a speech by Truss at the Conservative Party conference, the pound fell again and loan costs rose slightly. During the afternoon, the value of the pound fell by more than one percent against the dollar from 1.1315 to 1.1436. This after hitting a three-week high against the dollar in early trading on Wednesday.
In the meantime, the party is already raising questions about the future of Truss after YOUGOV public opinion polls show that her popularity is currently lower than that of Boris Johnson, whom she replaced in the position, as well as that of the previous candidate of the Labor Party, Jeremy Corbyn.
Only 14% of Britons see her in a positive light while 73% see her in an unfavorable light.
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