Bank of Japan (BOJ) policy surprise shift, boostJPYThe surge in the exchange rate has raised market expectations that the bank will join central banks in Europe and the United States in raising interest rates. Major U.S. indexes fluctuated in early trading on Tuesday (20th), and U.S. bond yields climbed.
before the deadline,Dow Jones Industrial Averagerose nearly 40 points or nearly 0.1%,NasdaqThe composite index fell more than 10 points or nearly 0.1%,S&P 500 Indexdown 0.01%,Philadelphia SemiconductorThe index fell nearly 0.2 percent.
The US stock futures index was mixed before the market. The main US futures index closed at a new low since early November yesterday. The prospect of rising interest rates and declining earnings dampened market sentiment.
The Bank of Japan unexpectedly announced today that it will relax the fluctuation range of bond yields from ±0.25% to ±0.5%.JPYExpanded to 9 megabytesJPY ($67.5 billion). In terms of interest rates, the Bank of Japan continued to maintain the policy rate unchanged at -0.1%, and maintained the 10-year Japanese government bond yield target at around 0%, in line with previous expectations.
The outside world believes that the Bank of Japan’s increase in the bond yield ceiling is the first step towards tightening monetary policy. As the last country in the developed market to insist on low interest rates, Japan is also beginning to move towards policy normalization.
With the reduction of liquidity injected into the market by the Bank of Japan,JPYThe liquidity brought about by lending will also inevitably decrease. JPMorgan strategist Kerry Craig pointed out that this means that the Bank of Japan is signaling a gradual exit from its ultra-loose policy.JPYShould benefit in the short term.
After the announcement of the Bank of Japan decision, the global market was shocked,JPYThe exchange rate against the U.S. dollar once rose by more than 3%, hitting a new high in 4 months; the Japanese stock market plunged by more than 2% in the afternoon; U.S. bonds fell sharply,10-Year U.S. Treasury YieldIt once rose to 3.7% in a short term.
Foreign media reported that many economists are now overestimating that the Bank of Japan will raise interest rates next year, joining the U.S. Federal Reserve (Fed), the European Central Bank (ECB) and other central banks in raising interest rates after a decade of unconventional stimulus measures. . Deutsche Bank analysts said that the Bank of Japan may raise interest rates when the market has been affected by the European and American central banks’ hawkish stance last week.
In terms of energy, international oil prices rose on Tuesday, supported by a weaker dollar and the internationalization of the United States to replenish oil reserves, but uncertainty about the impact of the increase in new crown cases in China, the world’s largest oil importer, limited oil price gains.Before the deadline, due in February next yearBrent Crude OilFutures rose 0.36% to $80.09 a barrel; West Texas Intermediate crude futures, which expire in January next year, rose 0.73% to $75.74 a barrel.
In terms of individual stocks, FedEx (FDX-US) and Nike(OF THE US) will announce the latest financial report after the U.S. stock market close. Among them, FedEx has a global business and a wide variety of goods.
As of 22:00 on Tuesday (20th) Taipei time:
Focus stocks:
Lucid(LCID-US) rose 4.15 percent to $7.53 a share in early trade
U.S. electric car start-up Lucid raised more than $1.5 billion in a series of stock offerings, sending its shares up more than 5 percent in pre-market trading. Lucid sold nearly 86 million shares privately to an affiliate of its largest investor, the Saudi Public Wealth Fund, raising about 915 million yuan, and the other 600 million US dollars was through secondary market stock capital increase, selling 56 million shares.
NIO (NIO-US) fell 1.04 percent in early trade to $10.95 a share
Chinese electric car maker NIO said on Tuesday that some user data and vehicle sales data before August last year were stolen, extorting $2.25 million equivalentbitcoin, has been reported to the police. According to a statement from Weilai Automobile, after preliminary investigation, the stolen data is some basic user information and vehicle sales information before August 2021. In addition to apologizing to users, Weilai Automobile also stated that it will cooperate with relevant law enforcement agencies to investigate the incident in depth, and resolutely crack down on related data theft and trading in accordance with the law.
Amazon (AMZN-US) rose 0.38% to $85.24 a share in early trade
U.S. e-commerce giant Amazon reached a settlement with the European Union on Tuesday over two antitrust investigations over the use of buyer data, which will save it from a sky-high fine of up to 10% of its global revenue. Shares of Amazon were up nearly 0.3 percent in premarket trading.
Today’s key economic data:
- The initial value of the total number of building permits in the United States in November was reported at 1.342 million units, expected to be 1.485 million units, and the previous value was 1.512 million units
- The initial value of the monthly rate of building permits in the United States in November was -11.2%, expected -2.5%, and the previous value was -3.3%
- The annualized monthly rate of new housing starts in the United States in November was -0.5%, expected -2.1%, and the previous value was -2.1%
- U.S. housing starts reported an annualized total of 1.427 million in November, compared with 1.40 million expected and 1.434 million previously
Wall Street Analysis:
MSCI’s index of stocks across the globe is down about 19 percent this year. Although U.S. stocks have rebounded since the summer, Goldman Sachs’ strategic analysis team predicts that this round of bear market will see more shocks and declines, and reach a low point later next year. They see interest rates peaking, economic growth deteriorating stabilizing, and stocks starting a sustained rally.
Bernstein analysts recently released a research report saying that despite the sharp sell-off of technology stocks this year, valuations are not as cheap as they were when they retreated this year. Analysts at the agency predict that the rise in technology stocks will not be much higher than that of the broader market, and reiterated their rating on the technology industry as equal to the broader market.
Bernstein analysts recommend that investors adopt a “balanced barbell strategy between expensive/growth and cheap/value technology stocks” next year. Among the very cheap technology stocks mentioned are Qualcomm (QCOM-US),Intel(INTC-US), Micron (MU-US), HP (HPQ-US), HPE Technologies (HPE-US)、eBay(EBAY-US) and Dell (DELL-US); On the other hand, the more expensive stocks include Snowflake (SNOW-US)、Datadog(DOG-US)、DoorDash(DASH-US)、Zscaler(ZS-US) and Roblox (RBLX-US)。