American Airlines Realize Less-than-expected Losses
American Airlines witnessed smaller-than-expected net losses for the third quarter of 2021, as the American aviation giant takes advantage of shooting demand for flights amid the holiday season as travelers who could not visit their loved ones last year. Lessening COVID-19 cases have raised hopes that passengers’ confidence in flying once more is boosted.
MACROECONOMIC DATA ANALYSIS
The International Monetary Fund (IMF) stated in its latest report that consistent supply chain disruptions and pricing pressures are offsetting the global economy’s recovery from the coronavirus crisis. The IMF lessened its 2021 global growth outlook from 6.0% July to 5.9%, with the 2022 global growth forecast for 2022 remains to be at 4.9%.
China’s National Development and Reform Commission (NDRC) noted that the Asian super nation will enable coal-powered plants to charge customers a price markup, driven by higher electricity prices, amid a depleting and worsening energy sector.
The U.S. dollar edges higher towards a firm & upward trend, driven by increasing long-term interest rates set by the Federal Reserve and higher demand from commodity customers. The dollar index, compared to a basket of its major currency counterparts, edged 0.20% higher to 94.510.
Gold prices traded higher, despite the U.S. dollar greenback increasing in value which typically moves inversely to the precious metal, supported by investor fears of increasing pricing pressures which persistently keep global markets unsettled & volatile. The safe haven futures surged 0.82% to $1,767 per ounce.
Crude oil prices drop down, failing to reach three-year highs after strong previous trading sessions, despite a rebound in global demand for energy amid shortages in global economies. Brent oil stumbled 0.50% lower to $83.25 a barrel, while WTI edged 0.17% lower to $80.41 per barrel.
USA: S&P500 +0.03%, Dow Jones Industrial Average +0.03%, Nasdaq Composite -0.18%
Europe: FTSE 100 -0.34%, DAX -0.48%, CAC 40 -0.57%
Asia: Nikkei 225 -0.94%, Hang Seng -1.43%, CSI 300 -1.06%, Nifty 50 +0.26%
E-commerce leader Amazon, as part of its Climate Pledge Fund, has invested in the Italian CMC Machinery, which manufactures custom-sized packages which eliminate the necessity of single-use plastic packaging. The Climate Pledge Fund is a corporate venture capital fund, which invests in organizations driven to develop sustainable products, services and technologies.
The toymaking leader Hasbro stated that global supply chain issues cost the company around $100 million, due to an array of disruptions such as lost toy orders in the third quarter. The American multinational conglomerate has also warned of declining sales in the crucial holiday shopping season due to such supply chain bottlenecks.