International News 26/09
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The price of Brent crude oil is currently at US$ 75.2 per barrel, while WTI is at US$ 71.6.
The Brent crude oil futures price for November 2024 has seen a slight increase, reaching $75.20 per barrel, while the West Texas Intermediate (WTI) crude oil futures price for the same delivery period has declined to $71.58 per barrel. The increase in oil prices is influenced by the announcement of significant economic stimulus measures from China, including interest rate cuts and government funding. The reduction in US crude oil and fuel stocks has provided further support to the market, which has been on an upward trajectory since reaching its lowest point since 2021 in September.
The People's Bank of China has reduced the medium-term lending rate.
In a bid to support the country's slumping economy, the People's Bank of China (PBOC) has lowered medium-term lending rates. The People's Bank of China (PBOC) has reduced the interest rate applicable to the one-year medium-term lending facility (MLF) for certain financial institutions from 2.30% to 2.00%. The MLF offer rates ranged from 1.90% to 2.30%, indicating that the financial institutions in question have varying funding needs. Based on the substantial volume of MLF maturing in the fourth quarter, OCBC Bank's Head of FX and Interest Rate Strategy, Frances Cheung, anticipates a reduction in the reserve requirement ratio before the year's end.
Billionaire David Tepper sells a significant portion of his Nvidia holdings.
David Tepper, the billionaire investor and founder of hedge fund Appaloosa Management, is renowned for his successful investment strategies, with an annualised gross return of over 28% since 1993. Mr Tepper's decision to sell his approximately 84.39% stake in Nvidia is noteworthy, reducing his holding from 4.42 million shares to 0.69 million shares. There are a number of potential reasons behind this move, including profit-taking due to the substantial rise in Nvidia's share price and fears of an artificial intelligence (AI) bubble forming in the market. It is possible that Tepper is cautious about market expectations and the company's ability to generate returns from their AI investments.