Investors expect a reduction of the quantitative easing program in the US, Europe, and the UK

The US industrial production increased to pre-pandemic levels, indicating a further economic recovery. All figures indicate that the US economy is in a good position, and it doesn’t make sense for the Federal Reserve to maintain the stimulus program in such volumes. Therefore, there is a high probability that the Fed will announce a gradual cutting of the QE program starting from November at the meeting on September 22 (this year). At the same time, JPMorgan & Chase Co. reduced the estimate of the US economic growth in the third quarter from 7% to 5%.

The US hotels will lose $59 billion in revenue this year due to a lack of business travel. The reports for the 3rd quarter are expected to be weak.

The semiconductor shortage is decreasing platinum-group metal prices as investors are preparing for a long-term auto manufacturing crisis.

The US crude oil inventories have been decreasing for the sixth week in a row, and gasoline inventories fell to their lowest level since November 2019. Amid such shortages, oil showed an increase in prices yesterday. The threat of a new hurricane in Texas also contributed to the rise in prices.

In China, construction investment decreased by 3.2%, and the retail sales index decreased to 2.5%. The China Evergrande Group debt crisis is also putting pressure on the quotes. As a result, major stock indexes are declining in Japan, China, and Hong Kong. Macau casino stocks are falling as Chinese officials tightened control over the gaming center.

China urged the US, Britain, and Australia to “shed their Cold War mentality and ideological prejudices” after, on Thursday, they announced a new security pact that involves an 18-month plan to provide Australia with nuclear submarines. Although none of the leaders mentioned China, there are many of those who understand the pact to be a response to Beijing’s expansionism and aggression in the South China Sea and toward Taiwan.

New Zealand’s GDP increased to 2.8%. The data was better than economists’ expectations and increased the probability of an interest rate hike in the near future. But home prices are growing rapidly, despite the government reform. Australia’s unemployment rate fell to 4.5% (previous – 4.6%).