Tuesday started on a sunny note with the Reserve Bank of Australia holding rates steady, but caving in to market pressure at the central bank’s policy meet early today morning as it brought forward economic projections, signalling an earlier rate hike.
World leaders promised to end deforestation by 2030 at the United Nations Climate Change conference also known as COP26, underway at Glasgow, Scotland in the UK and pledged £14 billion towards the cause.
Investors wait cautiously for the Organisation of Petroleum Exporting Countries and Allies (OPEC+) meeting later today where ministers of the respective countries are expected to keep a steady pace in raising supply.
The US Federal Reserve meets tomorrow and the Bank of England meets on Thursday, and are both expected to make changes to their monetary policies with regard to persistent intrinsic inflationary pressure.
Top business and economic news today
- Oil prices steady ahead of OPEC+ meet: Oil prices rose by a meagre three cents as investors cautiously await the OPEC+ meeting later in the week where the producer countries are expected to hike up future production numbers to meet supply demands. China released an official statement stating the release of reserves to improve price stability in the international market yesterday.
- RBA complies to ease inflationary pressure, keeps rate at 0.1%: The Reserve Bank of Australia (RBA) kept its cash rate at a record low of 0.1% as expected, and signalled its open to earlier rate hikes after last week’s data release showed inflation crossing the RBA’s target range. Home prices in the country rose 0.5% in October, up a 21.6% peak over the last year, its fastest hike since 1989. Home prices breaching fresh highs put pressure on the central bank to turn hawkish well before its intended plan to change course in 2024.
- India’s altcoin in spotlight today: Polkadot rose 15% while Shibu Inu was shot down by Edward Snowden who asked people to stop throwing their money at lacklustre dog coins on Twitter.
i say this with love:— Edward Snowden (@Snowden) October 31, 2021
if you got talked into exchanging your hard-earned savings for some new dog money because a meme said you'd get rich, please carefully consider your odds of outsmarting a market that sold to you its stake in *not even dog money but a CLONE of dog money*
- £14 billion pledge to end deforestation COP26: The G20 clan vowed to end deforestation by 2030 and pledged the amount towards the cause. Brazil, infamous for its destruction of the rich Amazons, is one of the signatories that agreed to support the cause.
- Bank of England expected to lead the way with tightening monetary policy: Market pricing suggests UK interest rates are set to rise above 1% by the end of 2022 touching their highest peak since 2009 with an initial rise of 15 basis points on Thursday taking the benchmark rate to 0.25%.
- US Fed is expected to taper its asset purchase program: The Fed is expected to taper its asset purchase program, amidst stubborn inflationary pressure at its meeting later this week. The greenback stays low as investors wait with racked nerves for the Fed’s decision.
- Stocks: Asian share markets open mixed as investors cautiously await decisions from different central banks and meetings across the world. MSCI’s gauge of AsiaPAC shares bounced back up 0.8 % in early trade.
- Oil: Prices are steady this morning with rent futures inching up by 3 cents ahead of the OPEC+ meet.
- Gold: Gold prices lay low ahead of the US Federal Reserve’s meeting tomorrow that would help ease the growing concerns over inflationary pressure in the country.
- Forex: Dollar subdued ahead of Fed meeting.
- Crypto: In the crypto-verse, altcoin Polkadot takes centre stage today and replaced Shiba Inu as the coin of the day with a 15% jump while Bitcoin and Ethereum perked up slightly.
What to watch out for today
- France’s 3-month, 12-month and 6-month BTF auction results are expected today
- Spain to report New Car sales year-on-year data for October, which is expected to be at -15.7%, down from -10% last month