Interest rates in India might stay ‘higher for longer,’ State Bank of India chairman says
India’s interest rates are likely to stay “higher for longer” and the current status quo might remain for “some time to go,” according to State Bank of India Chairman Dinesh Kumar Khara. He stated that the Reserve Bank of India (RBI) is unlikely to follow the timeline of other central banks, emphasizing that India’s central bank will probably decouple from the rest. Khara explained that inflation in the country had dipped below 5%, leading to this approach. In April, the RBI maintained its benchmark interest rate at 6.5% for the seventh consecutive meeting.
OCBC posts record first-quarter revenue and profit; offers to take insurance subsidiary private
Singapore’s second-largest bank, OCBC, reported record-breaking first-quarter revenue and profit. Its total income rose 8% year on year to SGD 3.63 billion ($2.68 billion), while net profit climbed 5% year on year to SGD 1.98 billion. On a quarter-on-quarter basis, revenue rose 11%, and net profit surged 22%. OCBC highlighted its robust performance across all segments, citing its banking operations profit reaching a record high. This exceptional performance was supported by higher wealth management income and assets under management. Additionally, OCBC offered SGD 1.4 billion to privatize its insurance subsidiary, Great Eastern, by purchasing the 11.56% stake that it does not currently own.
HSBC says Xiaomi might break even on its EV sooner than expected
HSBC now predicts that Xiaomi’s recently launched electric vehicle (EV), the SU7, will break even sooner than previously projected. The bank anticipates that the EV will reach a net profit of CNY 685 million ($94.8 million) by the end of 2026, compared to its earlier projection of CNY 810 million by 2028. This projection is due to the higher-than-expected order backlog of over 88,000 units and strong deliveries of over 7,000 units as of April 30. Xiaomi launched its SU7 EV just ahead of the Easter holiday this year.
Individual investors were last this ‘neutral’ on stocks eight months ago, AAII says
According to the American Association of Individual Investors (AAII), the percentage of individual investors who are neutral regarding the outlook for stock prices over the next six months has widened to 35.4%. This reading is the highest since last September and above the historical average of 31.5%. Bullish sentiment increased to 40.8%, which is above the historical average of 37.5% for the 26th time in 27 weeks. On the other hand, bearish sentiment declined to 23.8%, below last week’s 32.5% and the historical average of 31%. Contrarians who bet once morest the crowd interpret rising bullishness as a sign that investors have less cash to invest and less buying power ahead. Conversely, rising bearishness indicates more money available for investment and more selling already done.
Stocks making the biggest moves following hours
Several companies made significant moves in following-hours trading. Yelp’s shares slid 6% as the restaurant review site posted light second-quarter revenue guidance. Sweetgreen, the salad chain, saw a 5% increase in its stock following reporting better-than-expected first-quarter revenue of $158 million. Akamai Technologies, a cloud company, experienced a nearly 9% decline due to weak guidance for the second quarter. The company expects adjusted earnings ranging from $1.51 to $1.56 per share on revenue of $967 million to $986 million, below analyst expectations.
Stock futures open little changed Thursday night
On Thursday night, stock futures showed little change. Futures linked to the 30-stock Dow rose by 33 points, or 0.08%. S&P 500 futures and Nasdaq 100 futures both climbed 0.04%.
Implications and Future Trends
The statements made by the State
