The four major U.S. stock indexes opened higher on Tuesday (28th) as China further relaxed its quarantine and control time requirements for immigrants, revitalized market confidence, and ignited hopes for a recovery in global economic growth.
Before the deadline,Dow Jones Industrial Averagerose more than 350 points or more than 1%,Nasdaq Composite Indexrose nearly 90 points or nearly 0.8%,S&P 500 Indexrose nearly 1%,Philadelphia SemiconductorThe index rose more than 1 percent.
As the world gradually opens up, China has also further relaxed the quarantine and control time requirements for inbound personnel, cutting the quarantine time in half. Economic concerns.
In Europe, European Central Bank (ECB) President Christine Lagarde confirmed her plan to raise interest rates by one yard (25 basis points) for the first time in July, but she said policymakers were prepared to take action to tackle record inflation if necessary. In addition, the ECB will launch a bond-buying program, the first line of defense against a possible debt market crisis on Friday.
For individual stocks, Morgan Stanley (MS-US), Goldman Sachs (GS-US),Bank of America (BAC-US),FuGuo bank (WFC-US) Four major U.S. banks announced dividend hikes today after all four passed the Federal Reserve’s stress tests last week, proving their ability to weather a deep recession and allowing them to pay shareholders more profit.
However, JPMorgan (JPM-US) and Citigroup (C-US) announced it would keep its dividend unchanged, saying more capital was needed to weather the challenging economic environment.
On the energy front, crude oil prices rose as confidence in demand recovered after no local infections were reported in Beijing and Shanghai, China’s two largest cities on Monday. However, there was renewed bad news on the supply side, with Libya and Ecuador both saying unrest in their internal situation had hit oil production.
Meanwhile, G7 leaders are expected to announce restrictions on Russian oil and gas prices today in an effort to reduce the amount of money Russia gets through energy. Analysts, however, are highly skeptical of the proposal’s viability and remain nervous that the move could trigger further cuts in Russian supplies to Europe.
Crypto asset markets are making waves again, aftercryptocurrencyHedge fund manager Three Arrows Capital fails to repay over $670 millioncryptocurrencyLoans, including 15,250bitcoinand $350 million.
cryptocurrencyExchange Voyager Digital issued a default notice to Three Arrows Capital yesterday and is considering “legal remedies” to recover the funds. Before Three Arrows Capital defaulted,cryptocurrencyThe market tumbled, shrinking its market value to $950 billion, down from a peak of $300 million in November.
As of 21:00 on Tuesday (28th) Taipei time:
Stocks in focus:
Nike(US-US) rose 0.46% to $111.01 a share in early trade
Although Nike, a major sporting goods manufacturer, surpassed market expectations in terms of revenue and profit last quarter, its revenue forecast for this quarter was lower than market expectations due to increased promotional activities and the uncertainty of the policy in the Chinese market. Nike’s last quarter’s revenue was reported at $12.23 billion, and adjusted earnings per share were reported at $0.91. The military was worried about analysts’ estimates of $12.1 billion and $0.81. Looking ahead, Nike expects revenue to be flat or slightly up for the quarter, below consensus estimates of a 5.1% increase.
Occidental Petroleum Corporation (OXY-US) rose 3.65% to $61.06 a share in early trade
According to the information reported yesterday, Berkshire Hathaway (Berkshire Hathaway), which is in charge of “stock god” Buffett, continued to increase the stock of Occidental Petroleum, buying 794,000 shares last Thursday (23rd) to increase its shareholding. to 16.4%.
Reports said Berkshire’s increase this time could fuel speculation that Berkshire will continue to increase its holdings of Occidental Petroleum shares to 20%, or simply bid for the entire company.
Robin Hood (HOOD-US) fell 1.86% to $8.95 a share in early trade
A recent report pointed out that the company run by Sam Bankman-FriedcryptocurrencyThe exchange FTX is exploring the possibility of acquiring Robinhood. Robinhood’s stock price rose more than 20% in intraday trading on Monday, and even triggered a circuit breaker. However, Sam Bankman-Fried said in an interview that while he is impressed by Robin Hood and excited about the potential partnership, there are no active merger talks yet.
Today’s key economic data:
- The initial value of the monthly growth rate of wholesale inventories in the United States in May was 2.0%, the expected 2.1%, and the previous value of 2.3%
- U.S. trade balance in May – $104.31 billion vs. previous value – $106.7 billion
- The annual growth rate of the S&P/CS20 major city house price index in the United States in April was 21.2%, the expected 21.0%, and the previous value of 21.1%
- The U.S. Conference Board Consumer Confidence Index in June reported 98.7, expected 100.4, and the previous value of 103.2
- US June Richmond Fed manufacturing index reported -19, the previous value was -9
Wall Street Analysis:
Nationwide’s head of investment, Mark Hackett, said the stock market’s rebound from bear lows was a welcome change, but slowing economic growth and a lack of investor capitulation left many doubting the durability of the recovery.
Salman Baig, a portfolio manager for cross-asset solutions at Unigestion, said equities won’t be out of the woods unless central banks soften their language. Unfortunately for many investors, that turnaround may not happen until the economy slows enough to put inflation on a sustainable downward path.
Some analysts believe that bullish earnings forecasts are too optimistic. Lorraine Tan, head of equity research at Morningstar, said earnings revisions were a risk as the U.S. economy was set to slow next year, although China, escaping coronavirus restrictions, could act as a global buffer. He believes that U.S. economic growth may slow in 2023, but China is expected to emerge from the blockade.