Oil prices experienced a notable decline on Wednesday, primarily driven by disappointing Chinese economic growth data, raising concerns about demand growth in the world’s largest consumer of oil. By 09:10 ET (14:10 GMT), U.S. crude futures were trading 2.5% lower at $70.68 a barrel, while the Brent contract dropped 2.2% to $76.61 a barrel. Chinese gross domestic product (GDP) for the fourth quarter grew at a rate of 5.2% year-on-year, slightly below expectations. Despite surpassing the government’s 5% target for 2023, the growth was influenced by a lower base for comparison from the previous year, signaling a sluggish post-COVID recovery.…
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Jan 16, 2024: Morgan Stanley surpassed expectations in its fourth-quarter revenue, driven by a rebound in dealmaking activity, leading to a 1% increase in the investment bank’s premarket trading shares. The boost was fueled by several high-profile initial public offerings and merger announcements at the end of the previous year, instilling optimism for dealmaking in 2024. CEO Ted Pick emphasized a clear and consistent business strategy, focusing on long-term financial goals and delivering value to shareholders. As part of the effort to replenish a government deposit insurance fund depleted by around $16 billion after the collapse of two regional lenders,…
Jan 16, 2024: Goldman Sachs announced a 51% surge in fourth-quarter profit, reaching $2.01 billion or $5.48 per share, compared to $1.33 billion or $3.32 per share a year ago. The strong performance was attributed to the success of its equity traders who capitalized on the market rebound. CEO David Solomon highlighted the bank’s execution in 2023 and emphasized a clear and simplified strategy for a stronger platform in 2024. The equity trading revenue witnessed a notable 26% increase, contributing to the positive results. Additionally, the asset and wealth management business reported a 23% rise to $4.39 billion, supported by…
Jan 16, 2024: US stock futures indicated a negative opening on Tuesday as Wall Street prepared to resume trading after the Martin Luther King Jr. holiday. Investors are focused on upcoming earnings reports from major banks, with Goldman Sachs and Morgan Stanley in the spotlight. Both banks heavily rely on their investment banking divisions, and market attention will be on the performance of these operations in the final months of 2023. Last week, JPMorgan reported a “robust” pipeline for its investment banking unit and saw a surge in investment banking fees, reflecting optimism for potential interest rate cuts by the…
Jan 16, 2024: On Tuesday, most Asian currencies experienced a decline, while the U.S. dollar saw gains as traders adopted a cautious stance while awaiting further indications of when the Federal Reserve might initiate interest rate cuts. Regional markets remained on edge, anticipating key economic data from China, and concerns about an escalation in the Middle East conflict subdued risk appetite. The Japanese yen weakened by 0.2%, crossing the 146 level against the dollar. The release of producer price index data in Japan, indicating soft inflation in December, adds to the narrative that the Bank of Japan has less motivation…
Jan 15, 2024: On Monday, the Yuan experienced a drop to a one-month low following an unexpected move by China’s central bank, the People’s Bank of China (PBOC), which decided to maintain its medium-term policy rate. Contrary to market expectations for a rate cut to support China’s post-pandemic economic recovery, the PBOC’s decision led the onshore yuan to a one-month low of 7.1813 against the dollar. It later recovered some losses, trading down 0.08% at 7.1749. The offshore yuan also saw a decline, nearing Friday’s one-month low at 7.1906 per dollar. Meanwhile, the U.S. dollar remained relatively steady on Martin…
Jan 15, 2024: Goldman Sachs has adjusted its 2024 U.S. GDP growth forecast, increasing it to 2.3% from the previously anticipated 2.1%. In a note released on Sunday, the investment bank expressed optimism about much stronger GDP growth in 2024 compared to consensus estimates and noted a significantly reduced risk of recession.
Jan 15, 2024: In early European trade on Monday, the U.S. dollar exhibited muted movements, with limited activity due to the Martin Luther King Jr. Day holiday. The Dollar Index, tracking the greenback against a basket of currencies, traded 0.1% higher at 102.242. Following the unexpected decline in U.S. producer prices in December, traders are increasingly speculating about early interest rate cuts by the Federal Reserve. Market pricing indicates a 78% chance of the central bank initiating rate cuts in March, up from 68% a week ago, according to the CME FedWatch tool. The U.S. data calendar for the week…
Jan 15, 2024: Here are key updates on various market developments: Bank Earnings Anticipation: Goldman Sachs and Morgan Stanley are set to announce their quarterly results this week, with a focus on how they navigated a period of weakened mergers and acquisitions activity impacting advisory fees.Recent hopes of a potential Federal Reserve interest rate cut have boosted trading profits for large U.S. banks, contributing to a stock market rally. However, analysts are keen to assess the impact on net interest income amid concerns about a dormant deal pipeline.The outlook for the U.S. economy remains optimistic, as highlighted by JPMorgan, Bank…
Jan 15, 2024: Oil prices inched higher on Monday as market participants remained vigilant about potential disruptions in the Middle East following airstrikes by U.S. and British forces targeting Houthi militia in Yemen to prevent attacks on ships in the Red Sea. Brent crude futures increased by 13 cents, or 0.2%, reaching $78.42 a barrel by 0405 GMT, following a 1.1% gain in the previous session. U.S. West Texas Intermediate crude was at $72.73 a barrel, up 5 cents, or 0.1%, after nearly a 1% rise in the preceding session. Last week, the benchmarks experienced a surge of more than…
