Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®  
09/27/2021

  • So far this year there have been 149 bank mergers announced, which is already more than the 119 mergers announced throughout all of 2020. Much of the deal activity has been driven by regional and community banks that need to expand their technology capabilities and client base. 
  • The Fed announced that the U.S. household net worth rose by $23.2 trillion over the past year. This far exceeds the previous all-time high of $11.6 trillion back in 2019. While the government’s stimulus plans explain some of this number, the recent gains have been driven from the appreciation in equity and real estate markets. It seems the wealth effect - that is, consumer spending increasing as the value of peoples’ assets rise, is in full swing.
  • Last week the stock market experienced higher volatility as investors worried about the $300 billion in liabilities that Chinese real estate company Evergrande currently has. Will the collapse of Evergrande have ripple effects throughout China’s economy? As 15% of the nation’s GDP is tied to the construction and property industries and 70% of the wealth of China’s urban population is in the housing market, there is that possibility.
  • Although there has been increased attention given to the Federal Reserve’s plan to decrease it bond-buying program, many central banks are still pursuing easy money policies. Japan has not provided any indication that it will decrease its stimulus efforts, China recently injected $30 billion into its economy to offset the Evergrande risk, Turkey decreased it interest rates last week, and the EU has rejected any plans to taper. As a result, JP Morgan economists still estimate that the central banks of developed nations will add a net $1.5 trillion in assets to their balance sheets next year. 
 
Barrons – Bank Mergers Will Continue Ramping Up. Here’s Why
Bloomberg – The Most Important Number of the Week Is $142 Trillion
Bloomberg – Everyone Needs to Worry About Evergrande
Bloomberg – Central Banks Turning Slowly in Ending Pandemic’s Easy Money Era


Economic Calendar

Monday: Durable goods orders (Aug), Capital goods orders (Aug)
Tuesday: Trade in goods orders (Aug), S&P Case-Shiller Home price index (July), Consumer confidence index (Sept)
Wednesday: Pending home sales index (Aug)
Thursday: Real GDP Q2, Chicago PMI (Sept)
Friday: Real disposable income (Aug), Real consumer spending (Aug),
Core inflation (Aug), Markit Manufacturing index (Sept), ISM Manufacturing index (Sept), Construction spending (Aug), Consumer sentiment index (Sept), 5 year expected inflation rate (Sept)
US Futures
S&P 4453.50 +0.17%
DOW 34,799 +0.36%
NASDAQ 15,293.500 -0.16%

World Markets
FTSE 7072.77
+0.30%
NIKKEI 30,240.06 -0.03%
Hang Seng 24,208.78
+0.069%
Treasuries
3 Mo 0.033%
10YR 1.492%
30 YR 2.014%

Currencies
Euro $1.169
Pound $1.37
Yen $110.948

Commodities
Gold 1749.80
-0.11%
WTI Crude 74.91 +1.26%
Silver 22.55
+0.56%


Upcoming Earnings Calls

Monday - ACB
Tuesday - MU
Wednesday - No notable
Thursday - KMX, BBBY, JEF
Friday -No notable


Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC
This desk commentary is for informational purposes only


Ansie Monaghan
Carol Ann Fernandez

Glen EagleWealth, LLC
4422C Route 27
PO Box 399
Kingston, NJ 08528
(609) 631-8231

Glen Eagle Wealth | www.gleneagleadv.com