Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Good news for Alibaba
2022-12-16 • Updated
Alibaba’s affiliate Ant company may become the largest IPO not only now, but also in the entire history. Let’s discuss what it may mean for traders.
What is Ant?
Jack Ma founded both Ant Group and Alibaba, the latter has a 33% stake in the fintech firm. Ant Group, or, as it is sometimes called, Alibaba’s fintech arm, is China’s leading mobile payments company. Notably, Ant’s main payments service, Alipay, has 900 million users in China and over 1 billion worldwide. Unlike the rest of the world, just a small part of the Chinese population uses credit cards. Instead of that, they prefer app-based payments. Here’s the most interesting thing: once people download Alipay, Ant will offer them other products and services - both financial and non-financial. It is an online mall providing anything from loans and travel services to delivery services. Therefore, people got used to the whole ecosystem and will unlikely change it in the future. Therein lies the uniqueness and success of this company.
All this fuss is because Ant Group is preparing to list shares simultaneously in Hong Kong and Shanghai. The dual listing may drive the company even above Saudi Aramco’s record of 29 billion dollars IPO. Analysts widely expect that the firm will reach a value of 225 billion dollars, if it really raises 30 billion dollars in the listing on the Hong Kong stock exchange and Shanghai’s Star market. Ant is growing quite fast. It announced a revenue of 17 billion dollars last year, that is a 40% increase from 2018 levels. Let’s look at the charts.
Alibaba has risen significantly in 2020. The coming announcement may drive the stock even higher. If it breaks out the $280 mark, it will open doors towards the key psychological level of $300. Otherwise, if it falls below the support of $270, it may dip down to the next one at $260.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
More and more analysts are sure Brent oil will surpass $100 a barrel. So how heavily will oil move the markets, and what will the direction of the movement be? Let's find out!
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.
Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.