There are several factors that are conditioning the evolution of the markets in recent weeks.
First, after last week’s FED meeting, Jerome Powell announced that: “Interest rates would remain in a range between 0% and 0.25%, with the possibility of a first rate hike in 2022”.
The FED recognized that: “Inflation is high at the moment, but he insisted that a large part of the increase registered is due to” transitory “factors.
Powell commented that the advances in the vaccination campaigns and the strong economic support implemented have managed to improve the indicators of economic activity and employment. He also mentioned that activity in the sectors most affected by the pandemic has improved but that the increase in Covid-19 cases has slowed down its recovery. He expressly cited that “If progress continues toward employment and inflation targets, it will soon be justified to act and reduce asset purchases. If necessary, we can speed up or slow down the tapering, which will be gradual ”.
The tapering, could be confirmed in November or December, to start in 2022.
Second, Chinese Vice Premier Han Zheng during an emergency meeting this week ordered the country’s major state-owned energy companies to secure supplies for this winter, as a serious energy crisis It affects the entire country and several regions have had to reduce the energy supplied to the industrial sector, while some residential areas are constantly affected by large blackouts.
The energy crisis in China is affecting global commodity markets, fueling spikes in everything from fertilizers to silicon.
On the other hand, the semiconductor industry is severely affected due to the pressure of raw materials and the supply problems of the components they need in their production processes.
The automotive and technology industries such as Intel, TSMC, Samsung, Qualcomm, Nvidia, AMD, etc., suffer continuous delays for this reason.
Disclaimer: This article is generated from the feed and not edited by our team.
