China’s latest move to ease restrictions on the new crown epidemic and the regulation of Chinese stocks listed in the United States have injected optimism into a market worried about inflation and interest rate hikes, and U.S. stocks opened higher on Monday (6th).
Before the deadline,Dow Jones Industrial Averagerose more than 200 points or nearly 0.7%,Nasdaq Composite Indexrose more than 1%,S&P 500 Indexrose more than 1%,Philadelphia SemiconductorThe index rose nearly 1.6 percent.
From now on, China has gradually relaxed its measures to prevent the spread of the new crown epidemic, resumed normal work, and opened restaurants for use. The news eased the market’s worries about inflation and interest rate hikes. In addition, the Beijing government will also loosen the supervision of Chinese technology stocks listed in the United States.BABA-US), JD.com (JD-US) both rose more than 7%, Baidu (START US) rose nearly 5%.
Better-than-expected U.S. jobs data for May suggested the Federal Reserve would not change its course of tightening monetary policy to stem price pressures. Goldman Sachs economists said the Fed may be able to implement its aggressive interest rate hike plan without tipping the U.S. into recession.
Diana Mousina, senior economist at AMP Capital, said that China’s easing of lockdown restrictions will help ease supply chain pressures, adding that positive news about China’s economic activity and lower stock valuations are beneficial from a long-term investment perspective. , but volatility will remain high in the short term.
In terms of energy, Saudi Arabia, the world’s largest oil producer, raised the official selling price of crude oil due in July, and the increase was more than expected, affecting the price of crude oil once again hit the $120 per barrel level.
The Saudi price hike shows that supplies remain extremely tight, even as the Organization of the Petroleum Exporting Countries and its partners (OPEC+) agreed to start increasing the pace of output increases next month.
In Europe, the European Central Bank (ECB), like the global central bank, will tighten monetary policy in the face of high inflation. This week, it will announce the end of bond purchases, and the countdown will enter the stage of rising borrowing costs in July.There are reports that ifEURThe bond market has sold off and the ECB will strengthen its support.
As of 21:00 on Monday (6th) Taipei time:
Stocks in focus:
apple (AAPL-US) rose 1.54% to $147.62 a share in early trade
Apple’s annual Worldwide Developers Conference (WWDC) will take place at 1:00 am Taiwan time on Tuesday (7th), and the new operating system and possible new hardware have attracted much attention from the outside world. In addition, Apple shares have fallen 16.9% this year amid concerns about slowing demand.
Didi Chuxing (DIDI-US) surged 57.03% to $2.90 per share in early trade
According to The Wall Street Journal (WSJ), Chinese regulators will cancel theDIDI-US) and the ban on two other U.S.-listed tech companies, the bullish news boosted Didi to surge 50% in premarket trading on Monday. In addition to Didi, Manbang Group (YMM-US) and spotting (BZ-US) (Boss Zhipin), the two stocks soared 29% and 20% respectively before the market.
Spirit Airlines(SAVE-US) rose 1.64% to $21.08 a share in early trade
JetBlue Airways (JBLU-US) increased its support for Spirit Airlines (SAVE-US) in an attempt to persuade Spirit shareholders to abandon Frontier Air Group (ULCC-US), the new offer includes an enhanced reverse breakup fee of $350 million, $150 million more than the previous offer of $3.6 billion.
Today’s key economic data:
- The U.S. Conference Board Employment Trends Index reported 119.77 in May, from 120.60 previously
Wall Street Analysis:
U.S. stocks traded calmly as investors braced for upcoming central bank decisions and key economic data. Craig Erlam, senior market analyst at Oanda in London, said the market appears to be in a wait-and-see mode, at a stage where many rate hikes have been priced in. In addition, the slowdown in economic growth has been largely priced in by the market, which appears to have stabilized, although volatility in the stock market is still visible.
The Russian-Ukrainian conflict is redrawing the world’s energy map and could usher in a “new era”: the global flow of fossil fuels will be influenced not only by supply and demand, but also by geopolitical games. Zoltan Pozsar, head of short-term rates strategy at Credit Suisse, said the new order could make energy trading less efficient, increase the cost of energy transactions and could put commodities at the center of the next global economic crisis.