Inflation is above the target level in many countries

Jim Cramer, a well-known US TV host and former hedge fund manager, says that he thinks investors may start looking for hard-hit stocks to buy. Goldman Sachs expects a strong 4th quarter with the S&P 500 up 9%.

US President Joe Biden warns of the risk of a US government debt default due to Republican opposition. The US again opposed the Nord Stream 2 pipeline after Russia announced that it had begun to fill it with gas.

Saxo Bank’s chief equity market strategist said the following, “Policies are being implemented globally as if we have a demand shock, but we are currently facing a supply-side shock due to the pandemic, lack of investments in the physical world, and an accelerated decarbonization through electrification and renewable energy.”

Current technology does not allow for increased solar and wind generation because of the instability of such sources. It will lead to supply lagging behind demand and rising inflation, weak real economic growth, and negative rates.

Oil is holding near its highest level since 2014 following OPEC+’s decision to maintain a gradual increase in supply, even as the natural gas crisis boosts demand for crude oil. Companies like Glencore, Gunvor, Trafigura, and Vitol faced margin calls in the gas futures market and had to raise additional funding from banks. Brokers are demanding hundreds of millions of dollars from commodity traders to secure positions that were taken as part of hedging strategies.

Gold prices have stabilized in recent days. But as long as US government bond yields continue to rise because of rising inflation fears, gold and silver prices will be under selling pressure.

The missed payment on the bonds of Chinese real estate developer Evergrande has investors worried again. Another major Chinese developer Fantasia Holdings Group failed to pay its bond debt on time. The company missed the deadline to pay its $205.65 million bond debt due Monday.

Beijing is creating a system designed to ensure that the automated processes of Internet platforms are fair, transparent, and consistent with the ideology of the Communist Party. China’s tech index seeks a new low as the global sell-off continues. The Hang Seng Tech Index decreased by 2.5% yesterday. The blue-chip CSI 300 Index lost another 3%, extending losses from the September high to 10%.

Australia’s banking regulator is tightening home loan requirements as the rapid credit growth that has caused a jump in home prices poses a risk to financial stability.

New Zealand’s central bank raised interest rates for the first time in seven years in an attempt to curb rising inflation. The Reserve Bank of New Zealand (RBNZ) raised the interest rate from 0.25% to 0.5%. The RBNZ also plans to remove most of its stimulus measures as the economy recovers.