There are unemployment claims and Federal Reserve speakers galore – and an auction of inflation-linked Treasury bonds to watch out for in your daily analysis on the outlook for U.S. interest rates.
China takes a step forward to open up one of the enormous messes in its real estate sector. India’s payments champion undergoes an awkward drop on its market debut, and Nvidia (NASDAQ: NVDA) should lead U.S. stocks higher at the open. Oil proceeds to reduce talk that the world’s largest consumers will coordinate a release of strategic reserves. Here’s what you require to know in financial markets on Thursday, 18th November.
Unemployment claims, TIPS auction, and Fed speakers galore
It’s an occupied day for those trying to follow the evolution of the Federal Reserve’s thinking on interest rates. The regional presidents from Chicago, New York, San Francisco, and Atlanta will speak. They will have the chance to discuss the 30-year high in inflation and the latest weekly lay-off claims data expected at 8:30 AM ET (1330 GMT). Analysts anticipate initial claims to edge down to a new post-epidemic low of 260,000.
On Wednesday, JPMorgan (NYSE: JPM) had followed Goldman Sachs (NYSE: G.S.), Citigroup (NYSE: C), and Morgan Stanley (NYSE: M.S.) in changing its house view on the coming tightening cycle. JPM now sees the first interest rate hike appearing in September next year.
There may also be more interest than average on the Treasury’s auction of inflation-protected 10-year notes at 1 PM ET, given that yields on such paper have dropped close to all-time lows recently.
China’s National Team began to bail out Huarong
China moved up its attempts to stop the slow-motion train wreck in its real estate sector from stimulating.
China Huarong Asset Management, a specialist investor in distressed debt, will be recapitalized with an injection of higher to $6.6 billion from a handful of state-backed financial institutions, including Citic and China Life. That will reduce the Finance Ministry’s directly-held stake under 50%. It will also exchange its 40.53% stake in Huarong Xiangjiang Bank and an 80% stake in Huarong Financial Leasing.
The recapitalization signifies further progress in stabilizing the vehicle that holds many of China’s most toxic developer debt. Huarong’s previous chairman was executed in January for financial crimes.