Overseas Headlines – October 18, 2022

October 18, 2022


United States:

Rally in Futures Signals More Gains for US Stocks: Markets Wrap

A rally in US equity futures signaled an extension of gains on Wall Street, with Goldman Sachs Group Inc. the latest to provide investors with positive earnings news. Treasury yields dropped and the dollar edged lower.

Contracts on the S&P 500 climbed more than 2% after the underlying gauge closed above a key technical support level on Monday. Those on the Nasdaq 100 were up 2.4%. Goldman gained in premarket after better-than-expected third-quarter results. European stocks rose for a fourth day.



Deutsche Bank HQ Raided by German Prosecutors in Tax Probe

Deutsche Bank AG’s headquarters were raided by prosecutors as part of Germany’ vast investigation of the controversial Cum-Ex transactions that’s embroiled some of the world’s most powerful financial firms.

Cologne prosecutors began inspections at the bank’s Frankfurt premises on Tuesday, the lender said, adding that the raid is part of an ongoing probe pending since 2017 in which the company is fully cooperating.



China’s Shock GDP Delay Shows Communist Party Trumps Economy

China will push banks to lend more to some sectors and also speed up the rollout of existing economic support policies, the country’s central bank governor and finance minister said.

People’s Bank of China Governor Yi Gang on Thursday reaffirmed a pledge to “step up the implementation of a prudent monetary policy and provide stronger help to the economy,” in a video speech at a meeting of the central bank governors of the Group of 20 countries. Yi also said the PBOC will press banks to increase loans related to infrastructure, manufacturing and property.
During a week when investors are scrutinizing every utterance by officials in Beijing, the government’s unprecedented silence on key economic indicators is one of the clearest signs yet that the Covid Zero policy and politics trumps all else in Xi Jinping’s China.

The government postponed the release of several major economic reports in the past week, including gross domestic product figures, without providing a reason for the delay or a new release time.




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