Strong balance sheets from the US and cash injections from the People’s Bank of China are supporting global markets.
Strong balance sheets announced in the US, liquidity injection by the Central Bank of China, and hopes that the worst restrictive regulations in China are behind are bolstering global stock markets this morning.
On Tuesday, the S&P 500 rose 0.74%, and the Nasdaq 100 index rose 0.72%, while the outlook for futures this morning is flat. Company news such as Johnson & Johnson’s raising profit expectations and Netflix Inc.’s jump in subscriber numbers were effective in the S&P 500’s approach to its record level.
With the support of the South Korean TV series “Squid Game,” Netflix achieved 4.38 million new subscribers in the third quarter, above expectations.
The MSCI Asia Pacific Index gained a total of 1.41 percent for the two straight days. Japanese Nikkei, Hong Kong Hang Seng, and Chinese CSI 300 are also on the plus side.
China Provided Cash to the Markets
Borrowing costs fell in China’s $4 billion bond sale. Also, the concerns that the financial difficulties experienced in China Evergrande Group would spread to the economy in general decreased.
Demand for investment-grade bonds in the country continued to be strong in this period as well. The fact that global central banks have not yet started the tightening process and continue to provide liquidity to the markets has also been a supporting factor.