Business news: US inflation and new Covid drug from Novartis
By Jenny McCall
12:18, 10 January 2022
Key points
- Exports and import data: This week will see the announcement of key trade data that will undoubtedly affect the markets. Australia releases its latest import and export figures tomorrow, Japan follows on Wednesday and China on Thursday, with eurozone data expected on Friday.
- US inflation: On Wednesday, the US will release key inflation data, which many experts believe will still be high and may lead the Federal Reserve to increase interest rates.
- Covid-19: European healthcare systems are feeling the impact of the Omicron variant as it continues to spread across the continent, with many key staff unwell or self-isolating. Australia is also facing the harsh consequences of Covid, but prime minister Scott Morrison said on Monday that the country must “push through” as infections surpassed one million.
- Asia-Pacific region: It was a mixed picture from APAC markets today, as investors remained cautious due to rising Covid cases. Australia’s benchmark S&P/ASX 200 index suffered early losses to close 0.08% lower on Monday, while Japan’s benchmark Nikkei 225 index ended close to flat.
OOPS! US 10y yields jump >1.80% for 1st time since Jan2020. US #inflation data out on Wed will be keenly watched as concerns grow the Fed is behind the curve in tackling elevated price pressures. US CPI may have accelerated to 7% in Dec. pic.twitter.com/3uWeCz2QwM
— Holger Zschaepitz (@Schuldensuehner) January 10, 2022
Business and economic news
- Shares in battery materials supplier Novonix surged over 12% today, after the company announced it will list on the Nasdaq.
- Spire Healthcare Group, a private healthcare company based in the UK, has agreed in principle to support the National Health Service (NHS) as it continues to battle Covid-19.
Novonix (ASX:NVX) closed +10.80%. $NVX #investing #asx
— StockTrack ???? (@StockTrackAU) January 10, 2022
NVX has around $65.15m of open short positions (6,193,017 shares), and is ranked as the 139th most shorted stock on the ASX (per latest data)https://t.co/lbTmTJwefS pic.twitter.com/Z1SaOBUi9Q
Markets today
- Stocks: The FTSE 100 slipped today, driven mainly by housebuilders being hit by $5.4bn in costs to remove cladding from buildings, while banking shares gained as investors anticipated interest rate hikes.
- Oil: Oil prices rose slightly on Monday, as supply issues in Kazakhstan and Libya offset worries coming from the rapid global rise in Omicron infections.
- Gold: The price of gold eased today as investors waited for US inflation data in the expectation of interest rate hikes.
- Forex: The US dollar held firm as investors placed bets on higher inflation data from the US.
- Crypto: Bitcoin was down by 0.56% and Ethereum was down by 0.68% as traders continued to expect interest rate hikes and awaited inflation data from the US.
What to watch today
- Novartis (NOVN) announced today that it is developing a new drug to treat Covid-19 patients, and said early-stage testing has been positive.
Read more: Economic preview: markets expect US inflation to touch 7%
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