Morning note:
World food prices are the highest a decade, reflecting in part reduced wheat harvests by major exporters and higher palm oil prices, the United Nations’ food agency said.
The Food and Agriculture Organisation (FAO) said international prices of its basket of food commodities rose by 3% in October, for a third straight month of increases.
Reduced harvests by big exporters like Canada, Russia and the United States helped drive up wheat prices by 5%, while the Vegetable Oil Price Index soared by 9.6% in October, hitting an all-time high. Migrant worker shortages in Malaysia were a factor in that increase, the FAO said. – John Xavier
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10:45 A.M.
Uber posts first adjusted profit
Uber posted its first adjusted profit in the September ending quarter. The firm said its mobility business recovered to pre-COVID margins in the third quarter of 2021, and its core restaurant delivery business was profitable for the first time as well, bringing the full delivery segment close to break-even.
The company reported adjusted earnings before interest, taxes, depreciation and amortisation of $8 million for the September ended quarter, compared to a loss of $625 million a year ago.
Uber’s revenue grew 72% year-on-year to $4.8 billion. It forecast an adjusted profit of $25 million to $75 million for the last quarter of 2021.
10:15 A.M.
Evergrande contagion | Chinese developer Kaisa’s shares suspended
Trading in shares of Chinese developer Kaisa Group and three of its units was suspended today after the firm said a subsidiary had missed a payment on a wealth management product.
The developer said it is facing unprecedented liquidity pressure due to a challenging property market and rating downgrades. Kaisa has the most offshore debt coming due over the next year of any Chinese developer after embattled China Evergrande Group.
9:40 A.M.
Oil prices surge
Oil prices surged over 1% after OPEC+ producers agreed to stick to their plan to raise oil output by 4,00,000 barrels per day from December, ignoring calls from U.S. President for extra output to cool rising prices.
Brent crude increased just over 1% to $81.36 a barrel, while U.S. WTI rose 1.25% to $79.78 a barrel. Brent is on track for a nearly 4% fall this week, and U.S. oil is heading for a drop this week of nearly 5%.
9:00 A.M.
Asian markets update
Chinese markets dragged on Asian shares as they failed to follow a global record-setting rally.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.26%, while Japan’s Nikkei fell 0.67%. Hong Kong’s Hang Seng dropped 0.81%. South Korea’s Kospi was down 0.32%. Shanghai shares lost 0.24%.
In U.S., the S&P 500 and Nasdaq extended their streaks of record high closes to six sessions, and the Dow Jones Industrial Average posted a slim loss, ending a string of record closes.
Domestic equity benchmarks will remain closed today on the occasion of ‘Diwali Balipratipada’. Yesterday, Indian indices mustered smart gains as investors built up fresh positions in the special Muhurat trading session.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
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