The market was previously worried that the Federal Reserve (Fed) would aggressively tighten monetary policy, and US stocks fell for two consecutive trading days. Although investor sentiment gradually stabilized, they were weak. The main US stock indexes opened higher on Tuesday (30th) and then fell. Next, investors The focus will be on the Conference Board Consumer Confidence Index for August and US JOLTs job openings for July due later.
Before the deadline,Dow Jones Industrial Averageup nearly 20 points or nearly 0.1%,Nasdaq Composite Indexup 0.13%,S&P 500 Indexdown 0.05%,Philadelphia SemiconductorThe index fell nearly 0.1%.
European stocks and U.S. stock futures were higher and investor sentiment was stabilizing, meaning the stock market slump eased last week, when Fed Chairman Powell said the economy might have a period of pain without letting soaring inflation cool.U.S. 10-year Treasury yieldandUS dollar indexBoth fell before the opening bell.
For investors, Ball’s comments are the latest setback in a challenging year. Markets are hoping the Fed will turn to rate cuts next year, yet this week the Fed will also accelerate the pace of shrinking its nearly $9 trillion balance sheet. Other risks include a slowdown in China, an energy crisis in Europe and a war between Russia and Ukraine and problems with gas supplies.
Minneapolis Federal Reserve Bank President Neel Kashkari said in an interview on Monday (29th) that he was pleased with the recent plunge in U.S. stocks because it showed investors understood that “the Fed is serious regarding fighting inflation.” ”
On Wall Street, Credit Suisse advised investors to reduce their holdings of global stocks following the Jackson Hole annual meeting of global central banks, while JPMorgan Chase strategists said data from the U.S. job market was bad news for the economy, but not good news for the economy. A lack of stock market is a bullish sign.
At the same time, China willRMBThe daily reference rate was set at a stronger-than-expected level for the fifth day in a row, a sign that China’s central bank does not want toRMBThe exchange rate is too low, a move that also underscores the extent to which a stronger U.S. dollar poses a challenge to Asia at a time when Asian currencies are depreciating. Previously, Chinese offshore currencies fell to two-year lows on the back of the Fed’s hawkish stance.
EURThe district’s August economic and industrial sentiment indices both fell to 97.6 and 1.2, respectively, lower than market expectations of 98 and 1.5. The economic confidence index fell to a new low in one and a half years.
In addition, the service industry sentiment index in August reported 8.7, in line with market expectations, but still lower than the previous value of 10.7.data meansEURInflation in the region has repeatedly set new records, coupled with the approaching energy crisis, the region’s economy is closer to recession.
As of 21:00 on Tuesday (30th) Taipei time:
Stocks in focus:
Best Buy (BBY-US) rose 5.48% to $77.74 a share in early trade
U.S. consumer electronics retailer Best Buy reported strong earnings last quarter, with revenue of $10.33 billion, beating market expectations of $10.24 billion, and adjusted earnings per share of $1.54, also higher than market expectations. Shares rose nearly 3% in premarket trading on a better-than-expected drop in same-store sales at $1.27.
First Solar(FSLR-US) rose 4.91% to $127.67 a share in early trade
U.S. solar panel maker First Solar announced today that it will build a new solar panel manufacturing facility in the U.S. under the Inflation Reduction Act, which stimulates domestic manufacturing. The company will invest up to $1 billion in the new facility, its fourth fully integrated facility in the Southeast, and will spend an additional $185 million to upgrade and expand its existing Ohio facility.
Lucid Motors(LCID-US) fell 4.76% to $15.40 in early trade
U.S. electric vehicle startup Lucid has filed a so-called Shelf Offering with regulators to raise $8 billion. However, foreign media reports pointed out that Lucid said that there are currently no plans to sell any securities. Lucid shares fell 1.4% in premarket trading.
Today’s key economic data:
- The U.S. June FHFA house price index reported a monthly rate of 0.1%, expected 0.8%, and the previous value of 1.3%
- The U.S. FHFA house price index reported an annual rate of 16.2% in June, compared with the previous value of 18.3%
- The monthly rate of the S&P/CS 20 major cities in the United States following seasonal adjustment in June was 0.4%, expected 1%, and the previous value was 1.2%
- The U.S. June non-seasonally adjusted S&P/CS 20 major city house price index reported a monthly rate of 0.4%, the previous value was 1.5%
- The U.S. June unseasonably adjusted S&P/CS 20 major city house price index reported an annual rate of 18.6%, expected 19.5%, and the previous value of 20.5%
- The U.S. Conference Board Consumer Confidence Index in August reported 103.2, expected 97.9, and the previous value of 95.3
- US July JOLTs job openings reported 11.239 million, expected 10.475 million, the previous value of 11.04 million
Wall Street Analysis:
Terri Spath, chief investment officer at Zuma Wealth LLC, said the stock market underperformed amid concerns that the Fed’s aggressive rate hikes might lead to a hard and soft landing that would hurt the economy and corporate profits.
Manishi Raychaudhuri, head of Asia-Pacific equity research at BNP Paribas, said earlier rumors that the Fed may cut rates in the second half of 2023 have faded, and the market is now leaning toward higher rates for a prolonged period. Investors’ eyes in the coming weeks will be on the rate hike the Fed is likely to announce at its September meeting.
EURExtending the previous session’s gains once morest the dollar, it has recovered from a near 20-year low, mainly buoyed by market bets on interest rates. John Hardy, head of FX strategy at Saxo Bank, said this was because more aggressive pricing by the European Central Bank (ECB) had risen sharply over the past few sessions and pressure on gas prices had eased.
Notably, Hardy states that,EUR / USD has a bit of an appeal around parity levels, so many times these big round numbers can be the main sticking point.
