Bank of America reported a successful quarterly earnings report, and its stock price rose nearly 5% at the opening, boosting the main U.S. stock index to open higher on Monday (17th). On the other hand, the new British Chancellor of the Exchequer announced the withdrawal of tax cuts.GBPThe exchange rate once morest the dollar rose in response to the news, while bond yields fell and investors’ risk appetite improved.
Before the deadline,Dow Jones Industrial Averagerose more than 660 points, or nearly 2.2%,Nasdaq Composite Indexrose more than 340 points or nearly 3.3%,S&P 500 Indexup nearly 100 points or nearly 2.8%,Philadelphia SemiconductorThe index rose nearly 3.5 percent.
Britain’s new Chancellor of the Exchequer Jeremy Hunt announced on Monday the cancellation of the tax cuts previously announced by the Liz Truss government in an attempt to save investor confidence, following news brokeGBPHigher, British government bond yields fell short-term.
In this regard, Neil Birrell, chief investment officer of Premier Miton Investors, said that this means that market volatility should be reduced, but the uncertainty of the UK political situation has not disappeared, but may increase. For foreign investors looking to invest in foreign countries, this tug-of-war may be good news in the short term, but the long-term impact is still unknown.
In the United States, a preliminary survey released by the University of Michigan last Friday showed that although consumer confidence has increased, both long-term and short-term inflation expectations have climbed, which is negative news for the Federal Reserve (Fed), and the increase continues to rise sharply interest pressure.
At present, the market believes that the Fed will raise interest rates by 3 yards (75 basis points) in November as a foregone conclusion, and the hope of raising interest rates by 2 yards (50 basis points) in December is becoming more and more dim, and I am afraid that it will continue to raise interest rates by 3 yards. Interest rates will end up rising once more next year.
Kansas Fed Bank President Esther George and San Francisco Fed Bank President Mary Daly both revealed their hawkish stance in their recent speeches. George believes that interest rates need to continue to be raised to cool prices, while Daly supports raising interest rates to restrictive levels. It is expected that the final interest rate may fall between 4.5% and 5%.
In terms of data, the US Federal Reserve Bank of New York manufacturing index released on Monday plummeted to 9.1 in October, far less than the expected -4 and the previous value of -1.5, shrinking for three consecutive months.
In other markets, international oil prices fluctuated following falling for a week, as worries regarding an economic slowdown continued to weigh on demand prospects, and a weaker dollar also pushed gold prices higher, raising prices amid an uncertain economic outlook.goldsafe-haven status.
As of 21:00 on Monday (17th) Taipei time:
Stocks in focus:
Bank of America (BAC-US) rose 5.96% to $33.59 a share in early trade
Bank of America announced its dazzling financial report for the third quarter of the 2022 fiscal year before the market on Monday. As the increase in net interest income boosted performance, revenue was reported at $24.61 billion and earnings per share at $0.81, both better than market expectations of $23.57 billion and $0.77 Dollar.
Meta Platforms(META-US) rose 2.99% to $130.56 a share in early trade
According to The Wall Street Journal (WSJ), Horizon Worlds, a VR community platform owned by Meta, failed to meet internal performance expectations, with less than 200,000 daily active users, far below its original target of 500,000 and below its revised 280,000 target. people goals. To make matters worse, most users haven’t returned to Horizon Worlds following their first month, and the number of users has steadily declined since the spring.
apple (AAPL-US) rose 1.97% to $141.10 a share in early trade
Morgan Stanley was bullish on Apple’s ability to withstand a recession, and named the stock a “top pick,” sending shares up 1.4 percent before the market opened.
Today’s key economic data:
- US October New York Fed manufacturing index reported -9.1, expected -4, the previous value -1.5
Wall Street Analysis:
Morgan Stanley strategist Michael J. Wilson said the time is ripe for a short-term rebound per share in the absence of an earnings slide or an official recession.
In his report, he wrote,S&P 500 IndexIt is down 25% this year and is testing an important support bottom at the 200-week moving average, which might spark a technical rally that would not rule out a rise to around 4,150, which would imply a 16% gain from its recent close.
Notably, Wilson remains negative on the overall outlook for U.S. stocks. He believes U.S. inflation, which has now peaked, might come down quickly next year, but corporate earnings will decelerate sharply over the next 12 months.
