U.S. Treasury yields fell as investors braced for rising risks of a global recession, major U.S. stock indexes opened higher on Tuesday (27th), includingS&P 500 IndexIt opened above 1%, rebounding from a nearly two-year low at Monday’s close.
Before the deadline,Dow Jones Industrial Averageup 370 points or nearly 1.3%,Nasdaq Composite Indexup more than 200 points or 2%,S&P 500 Indexrose nearly 1.5%,Philadelphia SemiconductorThe index rose more than 2 percent.
Global stock markets are still jittery, as investors are bracing for heightened global recession risks despite bargain hunters. U.S. futures rallied along with Europe’s STOXX 600, while Asian shares fell.
Goldman Sachs and BlackRock are short-term on stocks, and Citigroup said bearish positions continue to increase. Most U.S. stocks were higher in the premarket, including Apple (AAPL-US), Amazon (AMZN-US) and tech giants like Alphabet.
In the bond market, following the worst sell-off in decades, the pressure on the bond market has eased, and the U.S. 10-year Treasury yieldDown from 2010 highs.US dollar indexIt remained near record highs set yesterday, when Federal Reserve officials reiterated their hawkish stance.
U.K. stocks recovered some of their losses, even as new finance minister Kwasi Kwarteng vowed to stick to his economic strategy, which sent U.K. stocks tumbling late last week.On the other hand, U.K. government bond yields began to decline following their biggest surge in history, whileGBPThe exchange rate rose regarding 1% following falling to a record low.
On the energy front, Denmark’s maritime transport authority reported today that they had discovered a “dangerous” gas leak near the Nord Stream 2 gas pipeline in the Baltic Sea. Beixi No. 2 was not activated, but the pressure in the pipeline dropped, which was suspected to be an air leak.
In response, Nord Stream, the operator of the Nord Stream gas pipeline, said the pipeline had suffered “unprecedented” damage and it was impossible to estimate the time of repair, which meant that Russian gas might not be piped to Europe this winter. European benchmark natural gas prices rose as much as 12% on Tuesday following falling for four straight days.goldAnd oil prices also rose.
Some media said that the leakage of the submarine natural gas pipeline is extremely rare, let alone three leaks were found within 24 hours.
Market turmoil appears to have kept Fed officials from changing their hawkish stance, with Boston Fed President Susan Collins and Cleveland Fed President Loretta Mester both saying more policy tightening is needed Both Fed officials hold voting rights on the Federal Open Market Committee (FOMC) this year in an effort to curb stubbornly high inflation.
At the same time, Raphael Bostic, president of the Federal Reserve Bank of Atlanta and a voting member of the FOMC in 2023, also said that the central bank still has some way to go to control inflation.
Fed Chairman Powell to attend Tuesdaydigital currencyThe same risks and regulations should be applied to crypto assets, panel meeting said while reviewing Fed digital currencypolicy and technical issues, but it has not yet been decided whether to continue. Powell did not address monetary policy issues such as interest rates and balance sheet reductions.
cryptocurrencyOn the other hand, thanks to the pause in global market turmoil this week,bitcoin (BTC) rose above $20,000 on Tuesday and ledcryptocurrencyOverall market capitalization rose back above $1 trillion.
As of 21:00 on Tuesday (27th) Taipei time:
Stocks in focus:
Tesla (TSLA-US) rose 3.98% to $286.99 a share in early trade
Despite recent upgrades at Tesla’s Shanghai plant in China, the company plans to keep the plant at around 93 percent capacity by the end of the year, a rare event for Tesla, according to two people familiar with the matter. move. The people familiar with the matter did not say why Tesla was not operating at full capacity, although one of the people said that 93% of the figure was lower than it expected. Tesla did not respond to a request for comment.
Lucid(LCID-US) rose 7.72% to $15.15 a share in early trade
Wall Street investment bank Cantor Fitzgerald is bullish on electric car startup Lucid, giving its stock an “overweight” rating, prompting Lucid’s shares to rise 2.7% in premarket trading. Jianda said that Lucid’s high-end electric vehicles provide higher efficiency, longer cruising range, faster charging speed and larger space than those on the market.
ideal car (LI-US) rose 2.01% to $26.92 a share in early trade
Chinese electric car maker Li Auto edged up 0.5 percent in premarket trading, even though it cut its third-quarter delivery forecast by 9 percent to 2,500 vehicles. The company said the revised delivery outlook was mainly driven by supply chain constraints, while underlying demand for vehicles remained strong and it would continue to work closely with its supply chain partners to address supply bottlenecks and accelerate production.
Today’s key economic data:
- U.S. building permits revised up to -8.5% in August, down from -10% previously
- The revised value of the annualized total number of building permits in the United States in August was 1.542 million, compared with the previous value of 1.517 million
- The initial monthly rate of US durable goods orders in August was -0.2%, expected -0.4%, the previous value – 0.1%
- US July FHFA house price index monthly rate reported -0.6%, expected -1.1%, the previous value of 0.1%
- US July FHFA house price index reported an annual rate of 13.9%, the previous value of 16.3%
- The seasonally adjusted annual rate of the S&P/CS20 major cities in the United States in July reported an annual rate of 16.1%, expected 17%, and the previous value of 18.7%
- The seasonally adjusted monthly rate of the S&P/CS20 major cities in the United States reported a monthly rate of -0.4%, expected 0.2%, and the previous value of 0.2%
- The U.S. Conference Board Consumer Confidence Index in September reported 108, expected 104.5, and the previous value of 103.6
- The annualized monthly rate of new home sales in the United States following seasonal adjustment in August was 28.8%, expected -2.2%, and the previous value – 8.6%
- The annualized total of new home sales in the United States in August following seasonal adjustment was 685,000, expected to be 500,000, and the previous value of 532,000
- U.S. Richmond Fed manufacturing index reported 14 in September, expected -10, previous value -8
Wall Street Analysis:
Andrew Hardy, investment manager at Momentum Global Investment Management, said the market has already priced in a lot of bearish sentiment with U.S. interest rate expectations rising sharply.
Laila Pence, president of Pence Wealth Management, said the market is pricing in the Fed’s rate hike, though it may still not be fully priced in.
In the United Kingdom, ING analysts said in a report that the new British government has only announced a series of tax cuts and liberalization policies for a few days, so fiscal policy seems unlikely to make a U-turn. The guardian of price stability, some believe the Bank of England should raise interest rates sharply during the meeting, but the Bank of England still has lingering fears from the events of 1992 and will not raise interest rates to defend the exchange rate.
