Investors are awaiting the release of a series of data reports, including November’s ISM non-manufacturing index in the US, to judge the Federal Reserve’s (Fed’s) monetary policy stance at this month’s meeting. (5°) open lower.
before the deadline,Dow Jones Industrial Averagefell nearly 190 points or nearly 0.5%,Nasdaq Composite Indexfell more than 50 points or nearly 0.5%,S&P 500 indexfell more than 20 points or nearly 0.6%,Semiconductor PhiladelphiaThe index fell by almost 0.6%.
The number of new nonfarm jobs announced by the US last week was far better than expected in November, together with the jump in average hourly wages for the month, showing new inflation risks and strong volatility in the bond market; at the same time, Federal Reserve Chairman Powell’s docile rhetoric could keep yields stable, but he stressed that fighting inflation still has a long way to go.
In addition, the nonfarm report strengthened investors’ bets on where US interest rates will peak in the current tightening cycle. According to the interest rate futures market, investors expect interest rates to end in the range between 4.75% and 5%. it is expected to raise interest rates by 2 yards (50 basis points) this month.
In China, Reuters quoted people familiar with the matter that the Beijing government could announce 10 new coronary pneumonia easing measures as soon as Wednesday (7), on top of the 20 easing measures it announced in November, and could plan to release them in January next year Reduce prevention and control from the current more stringent “Class B and A standards” to “Class B and B standards”.
Chinese concept stocks rallied across the board following the news release, and the Invesco Golden Dragon China ETF, which tracks the Nasdaq Golden Dragon China index, was up nearly 6% in pre-market trading. Alibaba (BABA-US) and Pinduoduo (PDD-USA) increased by 4.4% and 3.66%, respectively, while Tencent Music Entertainment (TME-US) increased by 3.24%. Chinese electric car brand NIO (NIO-USA) and Xiaopeng (XPEV-USA) increased by 6% and 12% respectively. Bibi (BILLY-US) up 16%.
It is worth noting that based on the policy changes, Morgan Stanley has upgraded the rating of Chinese equities to overweight. For the past two years, Morgan Stanley has given Chinese stocks an equal weight rating. Morgan Stanley called recent developments “a sure path to eventual post-COVID reopening.”
In other news,EURA larger-than-expected decline in retail sales in October, released on Monday, and the final reading of the composite Purchasing Managers Index in November, which fell for the fifth consecutive month and below the expansion-contraction line, both the data suggests thatEURThe region’s economy may enter a mild recession, but it also revealed hopes of a cooling in inflation, which is good news for European Central Bank (ECB) policymakers.
Starting at 22:00 on Monday (5th) Taipei Time:
Focus on actions:
starbucks (SBUX-USA) fell 1.21% in early trading to $103.78 per share
Deutsche Bank analyst Brian Mullan downgraded Starbucks to “Hold” from “Buy,” saying Starbucks’ stock price is unlikely to continue rising. Brian Mullan stressed that the downgrade is not a bad look at Starbucks, but an instruction to take action to maintain a balanced risk-reward environment.
Credit Suisse (CS-USA) rose 4.29% to $3.52 a share in early trading
Saudi Arabia’s Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan and private equity investors are preparing to take a $500 million stake in Credit Suisse’s New York-based investment banking unit, Credit Suisse First Boston , according to several foreign reports. First Boston). Shares of Credit Suisse rose more than 2% in early trading following the news.
Tesla (ATS-US) fell 2.31% in early trading to $190.35 per share
Tesla’s Shanghai Gigafactory delivered 100,291 vehicles in November, according to data from the China National Passenger Car Market Information Association. However, another source pointed out that Tesla plans to cut Model Y production at its Shanghai plant in December by more than 20% compared to November, and it was unclear why the production cut.
Today’s key economic data:
- The monthly growth rate of US durable goods orders in October was revised to 1.1%, the previous value was 1%
- US Factory Orders rose 1% MoM in October, expected at 0.7% & previously was 0.3%
- US November ISM Non-Manufacturing Index reported 56.5, expected 53.1, prior value 54.4
Wall Street Analysis:
Morgan Stanley strategist Michael Wilson said investors were better off taking profits, predictingS&P 500 indexIt will resume its decline after rising above the 200-day moving average last week, saying the year-to-date downtrend remains intact.
Simon Ballard, chief economist at First Abu Dhabi Bank, wrote in the report that it stands to reason that the longer the new restrictions on China’s coronavirus outbreak are in place, the more damage it will cause to the country’s economy. Now China it urgently needs policies to boost the labor market and help support domestic demand.