There are only a few economic reports due today, and none of particularly high importance.
In Europe, member states are meeting for a eurogroup meeting, one where the energy crisis is likely to be the main topic of discussion.
Meanwhile, Switzerland published its inflation rate report for September, which failed to meet the forecast, coming in at just 0.9%. Investors had expected it to grow to 1.1% instead. The country’s retail sales for August were better than expected, however.
Other reports to look forward to later today include the August number of building permits in Canada and factory orders in the United States for the same month.
Another high-profile meeting is taking place today, namely that of OPEC and its allies. OPEC+ will be deciding on their output quotas for November. Nevertheless, despite the current energy crisis experienced by many countries around the world, OPEC+ will probably stick to their pre-agreed quotas and not bump the amounts any higher because the coronavirus is still dimming demand.
In other news, the chaos surrounding Chinese developer Evergrande Group continues. The company has another payment worth $260 million due today, which it seems unlikely to make. It is reportedly getting ready to sell more of its properties in order to raise cash to make good at least on some of its liabilities. However, its downfall still seems imminent.
US stock indices will trade lower today, as market sentiment remains pessimistic. The trouble with insufficient supply of natural gas amid spiking demand and the ongoing coronavirus outbreaks are keeping the demand for risky assets low.
There was some good news on the Covid-19 front at the end of last week when Merck announced its antiviral pill is effective at treating the coronavirus. The company will be applying for emergency approval in order to be able to supply its drug to hospitals around the world. Its share value is going up.
Another company performing well today is Tesla, which announced record sales for the third quarter of 2021, unlike most of its competitors. Other carmakers have struggled due to a chip shortage, yet Tesla seems less affected by this problem.
