Yazar: Geoffrey Smith
Investing.com – Treasury begins auctioning $ 38 billion 10-year bonds just hours after February inflation data. Roblox enters the stock market via direct listing after setting the reference price at $ 45. The low performance model in technology seems to reappear. The Oracle earnings report will be shared, and the US government reports weekly oil stocks data.
Here’s what you need to know in financial markets on Wednesday, March 10th.
1. Treasury prepares for big bond sale
Inflation data for February will provide indications as to whether the Greater Inflation Fear of 2021 should be taken more seriously. CPI is expected to rise from 0.4% monthly and 1.4% year-on-year to 1.7%. Excluding more volatile elements such as food and energy, the core CPI is expected to increase by 0.2% monthly and remain at 1.4% annually.
The ability of the CPI to track actual inflation is controversial due to its inability to track change in real-time consumer spending patterns. This is a big event for the Year of the Pandemic.
However, the figures will certainly be of interest before the Treasury’s $ 38 billion 10-year bond auction. It will be more complicated than the tender of 3-year sales on Tuesday. Other notable data will be mortgage refinancing data, and it is likely to have suffered from increases in long-term interest rates in recent weeks.
2. Chinese markets recovered weakly; credit data stronger than expected
China’s stock markets have also been able to stop the rout – at least for a day. All major indices rose around 1% after monthly loan data were stronger than expected. Authorities banned searching for the term “stock market” in popular search engines as sales picked up last week, according to a Bloomberg report.
Total financing, the largest measure of loan growth, grew almost twice the forecast of 1.7 trillion yuan. The outstanding loan stock rose 13% from a year ago – a rate that will likely slow down, considering the Chinese central bank is targeting a rate close to 9%.
Base metal prices have come under further pressure after the country’s largest steel producing city issued a fog warning that would harm steel production. Iron ore futures fell 3% but copper futures are above $ 4.
3. Poor performance in technology will return; Oracle earnings report
US stocks will mostly open higher again on Wednesday, although the low performance seen in technology seems to repeat itself.
It fell by 103 points, rose 0.1% and lost 0.2%. The Nasdaq was up 3.7% on Tuesday after damaged tech names faced a sudden demand from bargain hunters.
Among the stocks that could be in the spotlight is GameStop, which earned another 25% on Monday. News about the company’s online sales re-intensified the ongoing squeeze of short positions in the stock. GameStop rose 11%. Others will be in the spotlight, such as Tesla, whose value increased by 20% to $ 100 billion.
Software giant Oracle will also present a earnings report.
4. Roblox will go public after setting a reference price with $ 45
The game platform Roblox will open to the New York Stock Exchange after it has stated its reference price as $ 45 per share for direct listing.
This price values the company around $ 30 billion.
The company, which experienced an increase in the average daily number of users and average play times due to the epidemic, opted to list directly in the same way as Palantir and Spotify, giving up a traditional initial public offering (IPO).
There is still a consolidated net loss of $ 197 million against $ 614 million in revenue for the nine months up to September.
Epic games, the publisher of Fortnite, whose revenue model is similar to that of Roblox, has grown antitrust attack against Apple (NASDAQ 🙂 and Google (NASDAQ 🙂 in a lawsuit in Australia.
5. Oil is calm; EIA stock data awaited
Crude oil prices consolidated after trying to overcome the shock of another major drop in US crude inventories last week and ignore the news that Iraq, OPEC’s second largest producer, was producing above its quota in February.
U.S. crude oil futures remained steady at $ 64.02, while Brent fell 0.2% to $ 67.20.
The focus of the day will likely be government stock data. The American Petroleum Institute’s weekly forecast showed 12.8 million barrels, the largest weekly increase since April. API data for the past two weeks seems close to the 21 million-barrel increase recorded by the Energy Information Agency (EIA) last week. Therefore, exceeding the 816,000 barrels increase expectation can be taken as negative.