WORLD STREET | OIL PRICES TICK UP, ASIAN MARKETS STRUGGLE, CHINA RETAIL SALES DISAPPOINT, AND MORE

In the September 16 edition of World Street, all eyes remain on the Federal Reserve's upcoming meeting, as market expectations for interest rate cuts intensify. The anticipation has also contributed to some upmove in crude oil prices, reflecting the broader economic outlook. Dive into this edition for a closer look at these developments and their potential impact on global markets.

Asian markets mixed; majority markets closed

Asian markets opened mixed this morning, with Hong Kong stocks declining as investors reacted to weak economic data from China, while several key markets remained closed for holidays. Investors are also focused on the Federal Reserve's upcoming policy meeting on September 17-18, where the central bank is expected to announce its first interest rate cut since 2020. Australia's S&P/ASX 200 rose 0.44 percent, and the Taiwan Weighted Index edged up slightly. Markets in mainland China and South Korea were closed for the Mid-Autumn Festival, and Japan's markets were shut for Respect for the Aged Day.

Oil ticks up; Fed's meeting in focus

Oil prices inched higher in early September 16 trade, driven by expectations of a US interest rate cut this week. However, gains were tempered by the resumption of US oil supply following Hurricane Francine and disappointing economic data from China. Brent crude futures for November rose 0.2 percent to $71.76 a barrel, while US crude futures gained 0.3 percent to $68.88 a barrel. Lower interest rates typically reduce borrowing costs, potentially boosting economic activity and driving higher oil demand.

Sluggish sales

China’s retail sales, industrial production, and urban investment all grew at a slower pace than anticipated in August, according to data from the National Bureau of Statistics. Retail sales rose by 2.1 percent year-on-year, falling short of the 2.5 percent growth forecast by economists and marking a slowdown from the 2.7 percent increase recorded in July.

Positive results

Pfizer’s experimental drug for cancer cachexia, a serious condition that causes cancer patients to lose appetite and weight, showed promising results in a midstage trial. Patients who received the treatment experienced improvements in body weight, muscle mass, quality of life, and physical function, according to Pfizer. The company also reported no significant side effects, with treatment-related side effects occurring in 8.9 percent of patients on a placebo and 7.7 percent of those on Pfizer’s drug.

First private spacewalk

A SpaceX capsule carrying four private citizens splashed down off the coast of Florida on September 15, concluding a historic mission that featured the world’s first all-civilian spacewalk. Billionaire entrepreneur Jared Isaacman, retired Air Force Lt. Col. Scott "Kidd" Poteet, and SpaceX engineers Sarah Gillis and Anna Menon returned to Earth aboard the Crew Dragon capsule, landing near Dry Tortugas in the Gulf of Mexico. The successful spacewalk marked a major milestone in human spaceflight, as spacewalks had previously been conducted only by government astronauts to construct or repair space stations, service satellites, and perform scientific experiments.

Last minute rescue

Air Canada announced that it had reached a tentative four-year collective agreement with its pilots' union, securing a last-minute deal that will prevent an imminent strike or lockout. With the agreement in place, both Air Canada and its subsidiary Air Canada Rouge, which operate nearly 670 flights daily and transport about 110,000 passengers as well as cargo, will continue normal operations, the airline confirmed.

Growth forecast

Argentina's draft 2025 budget anticipates a 5 percent economic growth and a primary fiscal surplus equal to 1.3 percent of GDP, according to a summary released by the Economy Ministry. The budget also forecasts inflation at 18.3 percent and expects the exchange rate to reach 1,207 pesos per dollar by the end of the year.

(with inputs from Reuters and other agencies)

2024-09-16T02:58:44Z dg43tfdfdgfd