US hiring is up and futures remain steady amid Fed news
By Jenny McCall
14:00, 3 November 2021
As the US stock market waited with baited breath for the Federal Reserve policy statement to land at 2pm ET (1800 GMT), stock index futures were steady, as investors held back from making any decisions ahead of the Fed meeting.
It is expected that the Fed will withdraw its pandemic support. The S&P 500 share index fell 0.1% lower, after closing at a record high, as many large corporates reported strong earnings results, which was a sign large companies were managing inflation pressures well.
According to payroll processor ADP, US private employers reported a good pace in hiring for October but warned that worker shortages as a result of the pandemic still remain.
UK house prices hit record
UK house prices reached £250k for the first time ever, according to the latest House Price Index report from Nationwide – the UK’s largest building society. Further good news brighten the UK economy, as businesses beat expectations by increasing growth in October. Despite a rise in input costs this was the highest increase for more than two decades.
For corporates who faced the challenges of a global pandemic and semiconductor shortage, there was further room to celebrate. German airline Lufthansa returned to profit, signaling recovery for the aviation sector after Covid-19. BMW also reported a strong Q3 result, despite supply chain issues.
Finally, the European Union unemployment rate declined in August, according to figures from the EU statistical office.
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Top business and economic news today
- Bank of England (BoE): The will they? won't they? debate on a interest rate hike from the BoE will end Thursday, as the UK central bank announces its next plan. Expectation is that the BoE will raise rates. Inflation in the UK slowed in September, but rose 3.1% in annual terms.
- US Fed Reserve: Today's meeting by the Fed will be eagerly anticipated, as investors wait to hear what move will come next from the US central bank. Experts predict however, that the Fed will be stepping back from its pandemic-led support policy.
- OPEC+ expected to stay put at the meeting tomorrow: The Organisation of Petroleum Exporting Industries and its Allies (OPEC+) is expected to stay put at its meet tomorrow.
- US private companies reported an increase in hiring for October but warned that staff shortages caused by the pandemic still remain. According to payroll processing company ADP, the US added 571,000 jobs in October, signaling that businesses that struggled to hire people were finally recovering.
- The European Union (EU) unemployment rate continued its five-month decline in September, though joblessness remained above its pre-pandemic level. According to data from the EU statistical office, the unemployment rate in the EU was 6.7%, down from 6.9% in August. The rate in the eurozone declined to 7.4% from 7.5%
- Following Polkadot record-breaking result yesterday, Ether reached a new high of $4,638.45 on Wednesday early morning in London. This increased the value of the second largest cryptocurrency close to $550bn. Solana reached a peak of of $232.65.
Markets today
- Stocks: As the US awaits the Fed statement, stock index futures were steady, as investors held back from making any decisions ahead of the Federal Reserve meeting. The S&P 500 share index fell 0.1% lower, after closing at a record high.
- Oil: Oil prices fell to $80 a barrel today as investors await tomorrow's OPEC+ meeting.
- Gold: Gold prices also fell today, alongside crude and precious metals.
- Forex: Greenback gained ground, Australian Dollar takes a blow from the Reserve Bank of Australia’s decision and the British Pound remains shook by Brexit jitters and nerves ahead of Bank of England’s pivotal meeting today.
- Crypto: Ether reached new highs, Bitcoin was down 2.1% and Solana also reached a new peak of $232.65.
What to watch out for today
German automaker, BMW posted a net profit of €2.6bn ($3.01bn), representing an increase of 42.4% versus the same period last year. Revenue for the group was also up 4.5% for the quarter compared to the same period last year.
German airline Lufthansa has returned to profit after a surge in demand following the easing of travel restrictions in Europe.
A mediation committee of the German carmaker Volkswagen is said to be discussing the future of the car giant's CEO Herbert Diess, over conflict with labour representaives began again.
Pharmacutical giant, CVS Health Corp announced on Wednesday that its adjusted profit target will meet analysts expectations, as it now predicts that healthcare insurance costs, which rose due to Covid-19, will now start to stabilize.
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