Although stocks that have fallen sharply recently have been boosted following the U.S. Labor Day holiday, market sentiment is still cautious, and economic recession fears have not subsided. U.S. stocks opened higher and lower on Tuesday (6th), and investors waited for the U.S. 8 to be announced later. Monthly ISM non-manufacturing index.
Before the deadline,Dow Jones Industrial Averagedown nearly 50 points or nearly 0.42%,Nasdaq Composite Indexfell nearly 90 points or nearly 0.3%,S&P 500 Indexfell nearly 0.3%,Philadelphia SemiconductorThe index fell nearly 0.6 percent, giving up all of its gains at the open.
During European trading hours, market sentiment calmed down significantly. European stocks rebounded and U.S. stock futures rose. The market temporarily got rid of the panic reaction to Russia’s “death”, and the focus began to turn to the European Central Bank decision. Until then, the dollar remained firm,goldTrying to hold steady at $1,710 an ounce, crude oil prices extended losses as investors awaited further clues.
Former British Prime Minister Johnson officially stepped down on Tuesday, handing the baton to Liz Truss, who won the Conservative Party leadership election a few days ago. It is reported that Truss acts in a tough style and regards the “Iron Lady” former British Prime Minister Margaret Thatcher as an idol, so he is called the second Iron Lady.
According to foreign media reports, Tesla is finalizing a 40 billionGBP($46 billion) support package to reduce energy bills for businesses.
On the energy front, European gas prices fell as European politicians scrambled to find a solution following Russia stopped supplying gas to Europe.
In addition, although the Organization of the Petroleum Exporting Countries and its partner countries (OPEC+) recently announced a rise in international oil prices following production cuts, the re-emergence of the new crown epidemic in China has caused demand concerns, and international oil prices have fluctuated.Brent CrudeFutures fell 2.3% to $93.56 a barrel; West Texas crude for October expiration rose 0.71% to $87.49 a barrel.
As of 21:00 on Tuesday (6th) Taipei time:
Stocks in focus:
Bed Bath & Beyond(BBBY-US) fell 11.70% to $7.62 a share in early trade
Meme stock Bed Bath & Beyond fell more than 14% in premarket trading on Tuesday, extending losses in previous sessions. The company’s chief financial officer, Gustavo Arnal, fell to his death on Friday, and Bed Bath & Beyond issued a statement following the loss of a general it said played an important role in guiding the company through the woes of the new crown epidemic.
CVS Health(CVS-US) rose 0.37% to $99.81 a share in early trade
U.S. pharmacy chain CVS said it will buy home health care company Signify Health (SGFY-US) to continuously strengthen its healthcare services. Signify Health provides technology and analytics to assist in home patient care.
Notably, CVS’ competitors such as Amazon (AMZN-US) and Walgreens (WBA-US) are also rushing into healthcare. Amazon announced in July to acquire primary care provider One Medical (ONEM-US)。
Dropbox(DBX-US) rose 2.98% to $21.80 a share in early trade
U.S. cloud storage service company Dropbox has been favored by Wall Street investment bank Bank of America, giving the stock a “Buy” rating, saying the company’s strong free cash flow is attractive to shareholders.
Today’s key economic data:
- The final value of the U.S. Markit Services PMI in August was 43.7, expected to be 44.2, and the previous value of 44.1
- The final value of the US Markit Composite PMI in August was 44.6, expected to be 45.0, and the previous value of 47.7
- US August ISM non-manufacturing index is expected to 55.1, the previous value of 56.7
Wall Street Analysis:
Seema Shah, chief global strategist at Principal Global Investors, said the global economy, and the European economy in particular, faces many very difficult challenges, with energy at the heart of everything. Unfortunately, this means that while European governments have tried to provide households and businesses with all kinds of help, it will not be enough to avoid a rather severe recession.
Morgan Stanley strategist Michael J. Wilson lowered his forecast for earnings per share growth for companies this year, saying the stock market may be more worried regarding an economic slowdown than scorching inflation and a hawkish Fed for now, 2023 Previously, even without a recession, corporate revenue would have fallen by 3%.
Deutsche Bank strategist Jim Reid pointed out that the market now not only expects the ECB to raise interest rates by 3 yards (75 basis points) on Thursday, but also expects to raise interest rates twice by 2 yards (50 basis points) each time before the end of the year. That would cement the fastest rate hike ever by the European Central Bank.
On the exchange rate front, analysts at ING Bank believe that the dollar should maintain its gains for the rest of the year, and a further 5% rise in the greenback cannot be ruled out. The Fed seems happy to raise interest rates to around 4%, along with U.S. energy independence, supporting the dollar. The dollar also appears to be the “best” safe-haven currency.
