U.S. stocks opened on Monday (2nd) as investors were cautious regarding high inflation, the Federal Reserve (Fed) tightening monetary policy and China’s new crown epidemic blockade measures, market sentiment was cautious, awaiting the Federal Open Market Committee (FOMC) meeting on Wednesday Trend fluctuates.
Before the deadline,Dow Jones Industrial Averageup nearly 50 points or nearly 0.13%,Nasdaq Composite Indexup 0.28%,S&P 500 Indexup 0.13%,Philadelphia SemiconductorThe index rose nearly 2 percent.
The market expects the Fed to raise interest rates by 2 yards on Wednesday (4th), which will be the largest rate hike since 2000, but the key question is how high and how high is needed to bring runaway inflation under control whether the tightening cycle will cause a recession. In addition, there are the uncertainties of the Russian-Ukrainian war and the new crown epidemic in China, which have further disrupted supply chains and pushed up prices.
Due to the supply chain disruption caused by the Russian-Ukrainian war, the prices of commodities ranging from fuel to food have soared, which has intensified price pressure to a certain extent. According to people familiar with the matter, the EU will propose to ban the import of Russian energy by the end of this year, and will gradually implement imports before this. limit.
Analysts at Nordic Bank in Sweden said some people still question whether the oil ban will pass because it needs unanimous support from EU member states, many of which rely heavily on Russian energy.
Traders will weigh escalating tensions between Europe and Russia and weigh demand risks from a slowdown in China’s economy. International oil prices fell on Monday. West Texas crude oil futures fell 3.56% to $100.95 a barrel by the time of writing.Brent CrudeFutures fell 3.28% to $103.63 a barrel.
As of 21:00 on Monday (2nd) Taipei time:
Stocks in focus:
apple (AAPL-US) fell 0.26% to $157.25 a share in early trade
Wedbush analyst Dan Ives pointed out that Apple’s second-quarter results were impressive, and although the third quarter will likely be negatively impacted by regarding $4 billion to $8 billion, demand for its products is still strong.
Ives said headwinds from negative factors such as supply chain issues might peak in the second quarter before subsiding in the crucial fourth quarter as demand for the new iPhone 14 is strong. In addition, Ives also pointed out that if there is no expectation of a decrease of 4 billion to 8 billion US dollars in revenue in the next quarter, Apple’s performance is expected to be revised up, which means that the market demand for Apple’s products is still good.
Modena (MRNA-US) rose 3.37% to $138.94 a share in early trade
Moderna’s Covid-19 vaccine for children under 6 will be ready for review by an expert panel from the U.S. Food and Drug Administration (FDA), which is expected to meet in June. Moderna applied for an emergency use authorization (EUA) from the FDA last week.
Bilibili (BILI-US) fell 9.04% to $22.14 a share in early trade
Chinese online game company Bilibili recently lowered its revenue forecast, mainly due to the impact of the outbreak of the new crown in China, and Wall Street investment bank Jefferies lowered its price target on the stock to $51.3 from $61.5 per share.
Today’s key economic data:
- The final value of the US Markit Manufacturing PMI in April was 59.2, expected to be 59.7, and the previous value of 59.7
- US April ISM manufacturing index reported 55.4, expected 57.6, the previous value of 57.1
- The monthly growth rate of U.S. construction spending in March was 0.1%, expected to be 0.8%, and the previous value of 0.5%
Wall Street Analysis:
Sebastien Galy, macro strategist at Nordea Asset Management, said the market was jittery ahead of the Fed rate hike, and the Fed has been providing liquidity for a long time, which has been factored into expectations for stocks, which is now happening as central banks tighten monetary policy. Change.
Seema Shah, global strategist at Principal Global Investments, said bond yields are likely to remain high for the “foreseeable future” due to inflation and the Fed’s sharp rate hikes and shrinking balance sheets.
Michael Arone, investment director at State Street Global Advisors, said that if the Fed shows that it sees no signs of peaking in inflation, it will cause investors to worry that the Fed may raise interest rates very quickly in the future.
Stephen Innes, managing partner of SPI Asset Management, said the market is concerned that the Fed may be quite hawkish and is expected to raise interest rates by 2 yards (50 basis points) and possibly 3 yards (75 basis points) in July.
UBS Global Wealth Management strategists Thomas Flury and U.S. economist Brian Rose wrote in a report that as the Federal Open Market Committee (FOMC) hawkish stance and geopolitical concerns may support the dollar, the dollar is expected to rise once morestEURwill remain strong.Short-term investors may consider selling on dips above $1.08EUR / Dollar.