Major U.S. stock indexes were little changed in early trading on Tuesday (29th), as investors weighed the prospect of the Fed raising interest rates and the prospect that Chinese authorities might ease the COVID-19 lockdown sooner, which has sparked protests in several major cities in the country.
before the deadline,Dow Jones Industrial Averagefell nearly 50 points or nearly 0.2%,Nasdaq Composite Indexdown 0.1%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index rose nearly 0.1 percent.
Before the U.S. stock market opens,S&P 500 IndexandNasdaq 100 index futures retreated from earlier highs, with the two underlying indexes down regarding 1.5% yesterday. Chinese concept stocks rose across the board, spurred by China’s expected relaxation of lockdown measures. Alibaba (BABA-US), Jingdong (JD-US), Baidu (BIDU-US) all rose more than X%, China’s electric car stocks also rose before the market, Xiaopeng Motors (XPEV-US), NIO (NIO-US), Ideal Car (LI-US) all rose more than X%.
Although the Beijing government did not announce any concrete steps on Tuesday, it promised to strengthen vaccinations for the elderly, a move that the outside world believes is the key to ending the strict restrictions of the new crown “zero” policy. A spokesman for China’s National Health Commission also said local officials must avoid excessive restrictions.
Another bullish news for stocks is that the Fed is expected to slow down the pace of rate hikes, a stance that is expected to be reinforced by comments from Fed Chairman Jerome Powell. That view, along with easing tensions in China, pushed the dollar lower once morest a basket of currencies following two days of gains.
It is worth noting that Powell is also expected to remind the public that the central bank’s battle once morest inflation may continue until 2023. A few days ago, James Bullard, president of the Federal Reserve Bank of St. Louis, and Lael Brainard, the “second in command” of the Fed, also conveyed this signal.
Global bonds, on the other hand, joined U.S. bonds in signaling a recession, with a measure of the global yield curve inverting for the first time in at least 20 years.
According to the Bloomberg Global Aggregate Bond Index, the average yield on government bonds with a maturity of 10 years or more has fallen below the average yield on government bonds with a maturity of 1 to 3 years. According to data dating back to the turn of the millennium, this has never happened before.
As of 22:00 on Tuesday (29th) Taipei time:
Focus stocks:
Superior ratio speed (UPS-US) rose 1.61 percent to $182.81 a share in early trade
Shares of delivery service UPS rose 1.4% in premarket trading following Deutsche Bank upgraded the stock to “Buy” from “Hold.” Deutsche Bank’s move reverses last year’s downgrade, which the bank said was concerned regarding the macroeconomic environment and upcoming labor negotiations but is now fully priced in.
apple (AAPL-US) fell 0.2 percent to $143.93 a share in early trade
Wedbush analyst Daniel Ives estimates that Hon Hai (2317-TW) Foxconn’s Zhengzhou factory protests disrupted operations, which may lead to a 5-10% reduction in Apple’s iPhone production this quarter, but will not affect long-term demand. Bloomberg also quoted people familiar with the supply chain yesterday and reported that the turmoil at the Zhengzhou factory may reduce iPhone production by regarding 6 million units this year. Apple only recently revised its single-season production target from 90 million to 87 million.
Year(ROKU-US) fell 3.54% in early trade to $52 a share
Shares of streaming media device company Roku fell nearly 3% pre-market following Wall Street investment bank KeyBanc downgraded the stock to “sector weight” from “overweight,” saying it was bullish on several of Roku’s stocks. aspect failed to function.
Today’s key economic data:
- U.S. September FHFA house price index reported an annual rate of 11%, the previous value of 12%
- The monthly rate of the FHFA house price index in the United States in September was reported at 0.1%, expected – 1.2%, and the previous value – 0.7%
- In September, the annual rate of the S&P/CS 20 major cities’ unadjusted house price index was 10.4%, expected 10.8%, and the previous value was 13.1%
- In September, the monthly rate of the S&P/CS 20 large cities’ non-seasonally adjusted house price index was -1.2%, expected -1.2%, and the previous value was -1.3%
- U.S. Economic Review Council consumer confidence index reported 100.2 in November, expected 100, previous value 102.5
Wall Street Analysis:
Christophe Barraud, chief economist at Market Securities, said China was reaching a certain tipping point in terms of epidemic restrictions, and even before the latest turmoil, officials were ready to implement more targeted measures, but the turmoil would only accelerate the process.
Bank of America’s chief market analyst reported that this yearS&P 500 IndexIt is expected to usher in the Christmas market. “From the close of the day before Thanksgiving to the last day of the year,S&P 500 IndexIt was up 71% of the time, with an average return of 1.49% (median 1.70%). During the period, the percentage rise from Christmas Eve to New Year’s Eve was greater than the percentage rise from Thanksgiving to Christmas Eve. “
However, Bank of America analysts noted thatS&P 500 IndexTo confirm the near-term uptrend, three cyclical bear market resistance levels must be broken, including the 40-week moving average at 4,033, the 2022 downtrend line around 4,100, and the August low at 4,325.28.
