2023-06-29 16:15:40
On the 29th, the New York stock market started with a slight uptrend. The release of solid economic data from the US fueled tightening concerns, pushing bond yields and the dollar higher.
The U.S. first-quarter economic growth rate (GDP) announced on the same day showed once once more that the U.S. economy is stronger than expected. The final figure was 2.0% compared to the previous year, twice as high as the previous figure (1.1%). Growth was boosted by higher exports and consumer spending, as well as government spending.
In the US, new weekly claims for unemployment benefits also came in at 239,000, below expectations of 266,000. The number of claims for continuous unemployment benefits also fell short of the forecast at 1.742 million. As employment remains strong and the economy appears to be strong, the possibility of a further 25 basis point hike next month has increased.
In Europe, the Consumer Price Index (CPI) for Spain has been released. As of May, it exceeded expectations by 1.9% YoY and 0.6% YoY, but recorded the lowest growth rate in two years. However, the German CPI was still higher than expected at 6.4% per year and 0.3% per month. The fact that Fed Chairman Jerome Powell expressed the possibility of raising interest rates twice within this year in a speech held in Europe also added weight to the possibility of tightening. “The majority of FOMC attendees believe that two or more rate hikes by the end of the year will be appropriate,” Powell said.
On this day, large U.S. banking stocks were bullish on the news that all banks had passed the Fed’s stress test. Even assuming the worst, such as a 10% unemployment rate and a 38% drop in housing prices, large banks are analyzed to have a financial structure that can withstand them. In extreme circumstances, the bank whose capital ratio would be most likely to be sound was Charles Schwab.
Coke-related stocks such as Coca-Cola and PepsiCo were weak. News that the World Health Organization (WHO) can designate aspartame in Diet Coke, etc., as a carcinogen has been reported as a negative material. Virgin Galactic’s share price plummeted ahead of the launch of its first commercial space flight.
Among pharmaceutical stocks, diabetes treatment manufacturer Sigilen Therapeutics (SGTX) surged 650% at one point on the news of Eli Lilly’s acquisition. It is acquired for cash at $14.92 per share, but the overall valuation is around $125.56 per share. As a result, the stock price, which had been undervalued, soared.
Micron’s share price, which rose following the announcement of the previous day’s earnings, plunged in the early hours of the trading session. Although it posted results that exceeded expectations the previous day, the fact that the issue of Chinese sanctions remained was a hindrance.
On Wall Street, positive reports came out regarding Netflix, battery makers Player, and TJMax. However, negative investment opinions were presented for Pfizer, Disney, Citizen Financial, and C3.ai, which dragged down stock prices.
New York = Correspondent Jeong So-ram ram@hankyung.com
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