Taiwan stocks will open in a red session tomorrow (7th) in the Year of the Tiger. Although the four major U.S. stock indexes rebounded during the period when Taiwan stocks were closed, the volatility was quite severe, and the Federal Reserve will raise interest rates and shrink the balance sheet soon. Many variables are expected to open tomorrow. The red market has added variables, and the stock exchange also came forward today (6) to speak with confidence, emphasizing that under the supervision of the Financial Regulatory Commission, relevant surrounding units have accurately grasped the international situation during the Spring Festival and prepared to study and discuss countermeasures to ensure the smooth opening of the red market.
Taiwan stocks closed down slightly on the closing day of the Year of the Ox. Fortunately, during the Spring Festival closure period, the four major U.S. stock indexes rose together. The market expects that Taiwan stocks, which are linked with the high U.S. stocks, are expected to rebound in the Year of the Tiger. However, considering the geopolitical tensions between Russia and Ukraine, and the Federal Reserve’s readiness to raise interest rates, there may be variables in the opening of Taiwan stocks.
The stock exchange stated that the Financial Regulatory Commission established a contingency team on a regular basis during the 11-day holiday period for Taiwan stocks. The chairman, Huang Tianmu, served as the convener, and invited various bureaus and surrounding units. Every day, a special person would review and analyze major international events and the performance of the stock market. Keep abreast of market information security incident reports and responses.
In response to the red market opening of Taiwan stocks on the 7th, the Financial Regulatory Commission convened on the 6th, the Securities and Futures Bureau, the Stock Exchange, the OTC Trading Center, the Futures Exchange and the Chibo Clearing House held a pre-market preparation meeting. The meeting will focus on the international political and economic situation and market overview. Analyse and develop countermeasures in advance.
In addition, this followingnoon, the stock exchange also invited securities companies, information industry and surrounding units to gather reports on the market survey situation to ensure that the Chinese New Year’s red market can be safe and smooth.
The stock exchange said that, observing the changes in the international stock market during the Spring Festival, US stocks are facing the uncertainty caused by the upcoming rate hike by the Federal Reserve. During the holiday period, the possible impact of the rate hike has been gradually digested, and the index stopped falling and rebounded.
The stock exchange further pointed out that U.S. stocks have released financial reports one following another, and companies that cooperate closely with my country’s supply chain have stable operations. It is expected that there should be no negative impact on the operating fundamentals and stock prices of Taiwan-listed companies.
As for geopolitics, the stock exchange believes that although the situation in Russia and Ukraine is tense, there is still a chance to resolve the deadlock through diplomatic negotiations, which intensifies the market’s concerns regarding the balance of oil supply and demand, and under OPEC+’s insistence on a slow production increase plan, Pushed up international oil prices to a 7-year high.
The stock exchange emphasized that although there are uncertain risks in the global stock market, the performance during the Spring Festival holiday was relatively stable and generally showed a recovery. Among them, the US stock Dow Jones Industrial Average rose 2.7%, NASDAQ rose 4.1%; in Europe, Germany fell 2.3%, France fell 0.4%, the United Kingdom rose 0.6%; in Asia, Japan rose 1.6%, South Korea rose 1.5%, and Hong Kong rose 1.2%.
In response to the outlook of the Taiwan stock market, Huang Tianmu also said a few days ago that Taiwan stocks continue to have capital momentum, the economic fundamentals are performing well, the industry is internationally competitive, and profits are expected. Among them, the annual revenue of listed companies in 2021 will increase by 15.2% compared with 2020. % amounted to 38.2 trillion yuan, and the net profit following tax in the first three quarters has reached 3 trillion yuan, exceeding the amount for the whole year of 2020. The excellent operating performance also made the weighted stock price index hit the highest record for the Lunar New Year customs clearance over the years, closing at 17,674.40 points.
