JP Morgan Reports Higher Profits amid Strong M&A Activity
The big, American investment bank JP Morgan recorded 24% more profits than expected for the last quarter, driven by the bank releasing more loan loss reserves and strong, global dealmaking capabilities and activity. JP Morgan stated that solid M&A activity amid a recovering global economy from COVID-19 continues to grow the largest U.S. bank.
MACROECONOMIC DATA ANALYSIS
The American Labor Department released national figures which portray an increase in prices paid by U.S. consumers for September by more than the forecast. The consumer price index increased by 0.4% from August, supported by faster national economy growth.
An unpublished study by the Ifo Institute for Economic Research revealed that Germany could raise an extra $6 to $7 billion in taxes from large establishments, following the nation’s global minimum tax deal agreed last week. The aim of this deal is to reduce the transfer of profits to low-tax countries in the medium to long term.
The U.S. dollar greenback drops lower, losing progress towards one-year highs against a basket of major currencies, driven by rising predictions that the Federal Reserve will begin asset-tapering next month. The dollar index dropped 0.31% to 94.222.
Gold prices rocket amid increasing estimations that the Fed would begin its stimulus initiatives next month, followed by potential rate hikes by mid-2022. Supported by a diminishing U.S. dollar greenback, gold futures climbed 1.55% to value at $1,787 per ounce.
Crude oil prices plummet as investors expect that the oil demand growth will stumble amid supply chain and inflationary issues straining large economies. Losses were offset, however, as prices for power generation have soared. Brent oil futures dropped 0.61% to $82.91 a barrel, and WTI oil futures realized a 0.79% decline, pricing at $80 sharp a barrel.
USA: S&P500 -0.14%, Dow Jones Industrial Average -0.44%, Nasdaq Composite +0.48%
Europe: FTSE 100 +0.21%, DAX +0.62%, CAC 40 -0.44%
Asia: Nikkei 225 -0.32%, Hang Seng -1.43%, CSI 300 +1.15%, Nifty 50 +0.94%
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.