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Brace, brace, brace: commodity prices surge

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It was all meant to fall into place: The world gets vaccinated, and the recovery from the pandemic-doom begins. But soaring energy prices are about to put the crunch on China, and then the rest of the world.

The latest bout of commodity-price surge has taken markets by surprise just as major central banks were planning to find a path out of their stimulus measures.

But the price of commodities may put an end to that sort of wishful thinking on the part of federal treasurers and the Fed.

INNER MONGOLIA, CHINA

OIL, GAS RISE

Oil’s climbed to more than $80 a barrel for the first time in three years, natural gas for October delivery traded at the costliest in seven years and the Bloomberg Commodity Spot Index rose to the highest level in a decade. 

The rising cost of power, as well as intermittent power cuts to Chinese factories as Beijing tries to force reduced emissions, could now lead to surging prices for Chinese goods.

Sharp cuts in production across a range of energy-intensive industries in China are now expected to drag growth lower this year, with economists from Goldman Sachs Group Inc. to Morgan Stanley cutting forecasts.

Trader on the New York Stock Exchange
Trader on the New York Stock Exchange

WALL STREET BRACES FOR IMPACT

Investors have been caught by surprise, having spend much of the year planning for a sudden recovery. Wall Street stocks ended sharply lower on Tuesday in a broad sell-off driven by rising U.S. Treasury yields.

It was the S&P 500 index’s biggest one-day percentage drop since May, and the Nasdaq’s largest since March.

The S&P 500 and the Nasdaq Composite index were on track for their largest monthly declines since September 2020.

“The big picture is the sudden surge in the past week of yields, which has led to a ‘sell first, ask questions later’ mentality.”

Ryan Detrick, senior market strategist at LPL Financial

In the US, rising costs for households and companies are hitting confidence while pushing inflation faster than economists had expected only a few months ago. 

In the U.K., consumer confidence fell in September at its sharpest pace since almost a year ago as Britons brace for a looming income squeeze. 

All three major U.S. stock indexes slid nearly 2%, with tech and tech-adjacent stocks weighing heaviest as investors lost their risk appetite.

“(But) there are multiple factors weighing on sentiment today,” Detrick added. “The back-and-forth in Washington with the debt ceiling and the spending bill and potential higher taxes have weighed on overall investor psyche and has led to a pretty good sized sell-off.”

THE SILVER LINING

Thankfully for advanced economies, they have been able to recover from the “COVID recession” better than anticipated a year ago. 

Many officials around the world are still hopeful the current spike in prices will fade without the need for action. 

European Central Bank President Christine Lagarde believes the key challenge for policy makers is that “we do not overreact to transitory supply shocks that have no bearing on the medium term.”

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Money

Apple Music’s controversial top 10 albums of all time

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Apple Music has released its highly anticipated “100 Best Albums of All Time” list, with the top 10 rankings causing a bittersweet symphony of destruction for some music lovers.

The list was curated by a panel of experts and based on various factors including cultural impact, critical acclaim, and commercial success, with the aim to celebrate the most influential and timeless albums across genres.

As reported by the official Apple Music Newsroom blog post, the top ten best albums of all time are the following:

10. Lemonade (2016), Beyoncé

9. Nevermind (1991), Nirvana 

8. Back to Black (2006), Amy Winehouse

7. good kid, m.A.A.d city (2012), Kendrick Lamar

6. Songs in the Key of Life (1976), Stevie Wonder

5. Blonde (2016), Frank Ocean

4. Purple Rain (1984), Prince & The Revolution

3. Abbey Road (1969), The Beatles

2. Thriller (1982), Michael Jackson

1. The Miseducation of Lauryn Hill (1998), Lauryn Hill

In other news, Apple recently became the first company to hit a $3 trillion stock market value, before falling just below that milestone, as reported by Reuters.

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How can we support a more eco-friendly future?

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With a $23 million commitment for a national circular economy and $1.3 million for net zero transition guidance, Australia is advancing towards sustainability.

Funding Futures is a weekly TV show on Ticker, hosted by Mike Loder and Steven Maarbani from Venture Crowd, that delves into the dynamic and evolving world of venture crowd-raising.

In this episode, we are joined by Cameron Hope, Founder of CEO of Hirehood. #trends #funding futures

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The integral step to entering the property market

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In the debate surrounding housing affordability, a divergence emerges between media portrayals and stark realities. While the crisis is often depicted as insurmountable, critics argue that individuals tend to blame external factors rather than taking personal responsibility.

Despite challenges, advocates urge a shift from despair to possibility, emphasizing personal agency and proactive pursuit of homeownership goals. Thus, while acknowledging the hurdles, reframing the discourse empowers individuals to navigate the housing market with resilience and determination, making the dream of owning a home a tangible reality for those willing to seize it. #Trending #Featured

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