Positive news of the progress of the negotiations between Russia and Ukraine continued to emerge. The Chinese authorities expressed their support for the overseas listing of mainland enterprises, and the Chinese stocks were fully bombed. The Federal Reserve (Fed) monetary policy meeting will come later, and the market is expected to raise interest rates by 1 Code, U.S. stocks opened higher on Wednesday (16th). Before the deadline,Dow Jones Industrial Averageup nearly 450 points or nearly 1.33%,Nasdaq Composite Indexup 1.82%,S&P 500 Indexup 1.47%,Philadelphia SemiconductorThe index rose 2.5%.
Kremlin spokesman Dmitry Peskov said Ukraine’s proposal to become neutral but retain its own armed forces “could be seen as a sort of compromise”, raising hopes for a negotiated end to the war .
According to Archyde.com, Russian Foreign Minister Sergei Lavrov said in Russian media that the issue of Ukraine’s neutrality and security guarantees is currently under discussion, and now there is a fairly clear idea and a deal is close.
Another piece of good news is that the recently bloodbathed Chinese concept stocks have rebounded sharply, mainly because the Chinese authorities have promised to provide stable support for the domestic market and continue to support the overseas listing of various companies, which has inspired investors’ confidence to return to the stock market. undertake. Analysts said the most important part of Beijing’s move was to reveal that controls on China’s big tech stocks may soon end. Before the deadline, Alibaba (BABA-US) rose more than 15%, JD.com (JD-US) surged more than 21%, Baidu (BIDU-US) rose 14%.
Then the Fed will announce the latest interest rate decision at 2:00 am Taiwan time. The market expects to raise interest rates by at least 1 yard. In addition, the Fed will also announce new interest rate dot plots and economic expectations. Chairman Powell will also hold a press conference. Investors focused on the Fed’s pace of future interest rate hikes, inflation expectations, and how to strike a balance between controlling inflation and economic growth, as well as when it will start to shrink its balance sheet.
In other news, the London Metal Exchange (LME) suspended nickel trading again on Wednesday minutes after the open after a “system error” caused a small number of trades to fall below its newly mandated daily price floor, the LME said it was investigating a technical glitch and will reopen nickel trading as soon as possible, and trades executed below the daily price floor will be cancelled.
As of 21:00 on Wednesday (16th) Taipei time:
Stocks in focus:
Teru (NVDA-US) rose 1.32% to $232.76 a share in early trade
Wells Fargo adds Nvidia to its pocket list picks, expects Nvidia to report good news in the upcoming investor day, and says the recent market downturn will help Nvidia create a favorable risk-reward ratio .
Boeing (BA-US) rose 1.89% to $183.29 a share in early trade
Investment bank Baird sees Boeing stock as a “bullish new pick” in the recent sell-off, noting that deliveries of Boeing’s 737 MAX jetliners to China are about to resume. According to reports, a Boeing 737 MAX that took off from Seattle in the United States a few days ago has flown to Boeing’s completion center in China, which means that the plane is one step closer to resuming commercial flights after it was grounded in China for three years.
Miko (MU-US) rose 5.33% to $77.10 a share in early trade
Bernstein upgraded Micron Technology stock to “outperform” from “underperform,” noting that the Russia-Ukraine conflict would not cause significant disruption to memory chip supply or demand.
Today’s key economic data:
- The monthly growth rate of US retail sales in February was 0.3%, expected 0.4%, and the previous value was 3.8%
- U.S. retail sales rose 17.6% in February, down from 12.3%
- The monthly growth rate of core retail sales in the United States in February was 0.2%, expected to be 0.9%, and the previous value of 3.3%
- The monthly growth rate of the U.S. import price index in February was 1.4%, 1.6% expected, and the previous value was 2%
- The annual growth rate of the US import price index in February was 10.9%, expected to be 11.3%, and the previous value of 10.8%
- U.S. EIA crude oil inventories change expectations for the week ended 3/11 – 1.6 million barrels, the previous value – 1.863 million barrels
Wall Street Analysis:
Lauren Goodwin, a portfolio strategist at New York Life Investments, said he would pay close attention to the Fed’s dot plot, predicting that it may raise interest rates 5 to 6 times a year. The yield curve inverted early.
Peter Garnry, head of stock strategy at Saxo Bank, emphasized that although the current progress of negotiations between Russia and Ukraine and investors betting that the war can be resolved soon, the market is still full of uncertainty. He also mentioned that the rebound in the Chinese stock market shows that the market is quite sensitive , any news will affect investor sentiment.
Naeem Aslam, chief market analyst at AvaTrade, said the sharp volatility in the oil market was due to speculators’ widespread unwinding of long contracts in West Texas Intermediate (WTI), diesel and gasoline futures.