Wall Street rebounds after Pelosi’s Taiwan visit ends

Wall Street rebounds after Pelosi's Taiwan visit ends

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, which together form the group known as OPEC+, have decided to increase their joint production by just 100,000 barrels of crude per day from next September. , as a press release reports.

At the end of Wednesday’s meeting, the group of countries, which includes OPEC and allies such as Russia, Mexico or Kazakhstan, decided to adjust the level of production upwards by 100,000 barrels. per day for the next month of September 2022.

The Speaker of the United States House of Representatives, Nancy Pelosi ends visit to Taiwan that provoked angry reaction from Chinaand markets are calming down from the wave of angst sweeping through assets before it arrives, once it looks like the blood hasn’t reached the river.

However, while the immediate concern over tensions between the United States and China may fade, theInvestors still face a number of concerns, including inflation and how central banks’ policy response to rising prices could dampen global growth. According to Goldman Sachs Group strategist Sharon Bell, stock trading does not reflect the headwinds the market is facing.

“There’s a bit of complacency and the markets aren’t fully pricing in the risks,” Bell told Bloomberg.

This saw gains in the Japanese Nikkei (+0.53%) and the Hong Kong Stock Exchange’s Hang Seng (+0.40%), although the Shanghai CSI 300 fell 0.97%.

Meanwhile, the latest statements from Federal Reserve officials such as Mary Daly and Loretta Mester serve to highlight the difficulty of the current environment and anticipate future central bank moves.

San Francisco Fed Chairman Daly believes the Fed has “a long way to go” to achieve price stability around a 2% inflation target. His Cleveland counterpart, Mester, warned he wanted to see “very compelling evidence” that month-over-month price increases are moderating before slowing the pace of monetary policy tightening.

In the fixed-income securities markets, which are very sensitive to changes in monetary policy, the yield on the ten-year US debt bond stands at 2.774%, while the 30-year paper yields 3.026%.

Among the companies that presented results, the negative rating goes to Matching group, which fell more than 21.75% at the open. The company behind Tinder or Hinge not only showed worse than expected results, but also offered a disappointing outlook for the market.

The company posted earnings per share of 52 cents on revenue of $795 million, versus $804 million expected. Match also gave a forecast for the third quarter of $790-800 million, which would be zero growth for the period and well below analyst estimates. The company said its forecast includes the impact of currency exchange rates.

also falls Airbnb Rg-A 3.6% despite the fact that their accounts were better than expected. Earnings per share were $0.56 versus $0.43 expected by analysts, while revenue rose 58% to $2.1 billion versus $2.11 billion expected.

Airbnb, like Uber Technology, benefited from an increase in consumer spending on activities rather than goods. Revenue soared 58% year-over-year to the aforementioned $2.1 billion, helping to fuel the company’s most profitable second quarter yet. Still, that growth was slower than last quarter, when revenues grew 70%.

In the macroeconomic part, investors will have to wait for the end of the bell to know the main references of the day, which will be the services PMI data and the composite PMI for July and the factory orders for the same month, which will help to form the new picture on the state of the US economy.

The price per barrel of Brent crude oil, a benchmark for Europe, settled at $99, down 0.94%, while Texas settled at $93, after falling 0, 87%.

Finally, the rate of the euro against the dollar stood at 1.0197 “greenback”.

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