On this week’s market summary:
💡1. U.S. foreign affiliate income is witnessing a rapid fall due to the negative news about supply chain bottlenecks or an economic slowdown in China. The recent facts released by the Bureau of Economic Analysis (BEA), U.S point towards $123 billion as the total foreign affiliate income. This figure is not just above the depressed numbers of 2020 but also a pre-pandemic high.
💡2. After a terrible month for stocks, some market experts are hoping for a positive turnaround in October owing to factors like global progress in the fight against COVID-19, the Federal Reserve's dovish monetary policy, and global mergers and acquisitions (M&A) activity that's been up significantly. In fact, global M&A activity for the first nine months of 2021 exceeded $4.3 trillion, which is already more than the largest year of M&A activity on record. Initial public offering activity in the US is also significantly higher.
💡3. China is likely to soon give the go ahead to the first batch of real estate investment trusts (Reits) backed by rental homes, as local governments ramp up efforts to lower the cost of living for young professionals and tame soaring property prices. The asset-backed securities, offering developers a new funding source, will effectively support construction of rental homes, which could amount to 500 billion yuan (US$77.6 billion) over the next five years, according to analysts.
💡4. Stocks on Wall Street rebounded from an early morning sell-off on Wednesday as Republicans appeared to offer a path, albeit temporary, to ending the US debt ceiling stand-off in Congress. Mitch McConnell, Senate minority leader, said in a statement on Wednesday that his Republican party would support an emergency extension on the federal government debt ceiling into December, which would stave off the immediate threat of a US default. The benchmark S&P 500 reversed its early losses of as much as 1.3 per cent, closing up 0.4 per cent following the comments.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?” .
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics. Take a look of the summary and WhatsApp us in the group if you have questions.
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