The market digested the aggressive interest rate hike measures taken by the Federal Reserve (Fed) to curb inflation. The major U.S. stock indexes opened flat and higher on Wednesday (7th), U.S. Treasury yields continued to rise, and international oil prices both fell.US dollar indexrising.
Before the deadline,Dow Jones Industrial Averagerose more than 100 points or nearly 0.4%,Nasdaq Composite Indexrose more than 80 points or 0.7%,S&P 500 Indexrose nearly 0.4%,Philadelphia SemiconductorThe index rose 0.25%.
Later in the day, the Federal Reserve will release the Beige Book, along with Cleveland Fed Bank President Loretta Mester, who will vote on the FOMC this year, Richmond Federal Bank President, 2024 FOMC voting member Thomas Barkin, and Fed “second-in-command” Lael Brainard will speak one after another. Investors will focus on the content of the Beige Book and talk with officials to explore the Fed’s future interest rate hike clues.
Barkin showed a hawkish stance in remarks earlier on Wednesday, saying the Fed must raise interest rates to levels that dampen economic activity and keep them there until policymakers are “convinced” that soaring inflation is receding.
Next, investors will wait for the August consumer price index (CPI) to be released next Tuesday (13th). The CPI has increased by 8.5% in the past July, which is lower than the 9.1% increase in June, and the latest data released next week will be It can further confirm whether inflation is showing signs of cooling.
On the other hand, the Bank of Canada will announce its interest rate decision later, and the outside world is expected to raise interest rates by 3 yards (75 basis points) in line with the Fed. In addition, the European Central Bank will announce its interest rate decision tomorrow, and the outside world is also expected to raise interest rates by 3 yards.
In the foreign exchange market, according to the “Nihon Keizai Shimbun”,JPYThe devaluation intensified, once depreciating to 144 per dollar JPYrange, hitting a 24-year low since August 1998. The situation has again drawn attention against the backdrop of central banks’ efforts to curb inflation, with only the Bank of Japan (the central bank) maintaining massive monetary easing.JPYStill hovering at 139 at the end of August JPYaround, but depreciated by 5 in a week JPY。
In terms of energy, the European Union plans to propose at a meeting of energy ministers of member states on Friday (9th) to limit the wholesale price of electricity for non-natural gas generation to 200 per megawatt-hour. EUR。
The international oil price fluctuated at a low level, as China’s trade data was lower than expected,Brent CrudeFutures traded near July lows.Deadline, due in NovemberBrent CrudeFutures fell 2.11% to $90.87 a barrel; West Texas crude for October expiration fell 2.42% to $84.78 a barrel.
In other news, Apple (AAPL-US) will hold the autumn new product launch conference at 1:00 a.m. Taiwan time on the 8th, and new products such as the iPhone 14 will be unveiled one after another.
As of 21:00 on Wednesday (7th) Taipei time:
Stocks in focus:
NIO (NIO-US) rose 3.65% to $17.73 a share in early trade
Chinese electric car maker NIO announced its bleak second-quarter earnings before the market. Although revenue exceeded market expectations, gross profit continued to decline and net loss expanded to 2.7 billion. In addition, the third-quarter financial forecast was far below market expectations. Shares fell more than 7% earlier.
NIO’s second-quarter revenue reportRMB 10.29 billion yuan, better than market expectations of 9.667 billion yuan; gross profit decreased by 14.8% year-on-year to 1.34 billion yuan; net loss reported 2.74 billion yuan, an annual increase of 316.4% and a quarterly increase of 50.4%. Looking ahead, NIO currently expects revenue in the third quarter to be between RMB 12.85 billion and RMB 13.6 billion, compared with the market expectation of RMB 16.23 billion. The vehicle delivery volume in the third quarter is estimated to be between 31,000 and 33,000.
ChargePoint(CHPT-US) rose 3.65% to $15.29 a share in early trade
Electric vehicle charging station manufacturer ChargePoint is favored by the investment bank Credit Suisse, giving the stock a “Buy” rating, mainly because the electric vehicle charging station market is expected to be boosted by the “Inflation Cut Act”, and it is optimistic that ChargePoint’s stock price will soar nearly 50%. Shares of ChargePoint rose more than 3% on the news in premarket trading.
UiPath (PATH-US) plummeted 19.11% to $12.61 a share in early trade
Software developer UiPath’s stock fell nearly 20 percent in premarket trading after its second-quarter earnings report widened its loss and lowered its full-year revenue forecast. According to the financial report, UiPath’s second-quarter revenue was reported at $242.2 million, higher than the company’s forecast range of $229 million to $231 million, compared with $195.5 million in the same period last year; loss per share was reported at $0.22, compared with 0.19 in the same period last year Dollar.
Looking ahead, UiPath expects third-quarter revenue to be in the range of $243 million to $245 million, and full-year revenue of $1.002 billion to $1.007 billion, down from the previous range of $1.085 billion to $1.09 billion.
Today’s key economic data:
- US July trade balance reported – $70.7 billion, expected – $70.3 billion, previous value – $80.9 billion
Wall Street Analysis:
Vincent Mortier, chief investment officer of Amundi SA, and Matteo Germano, deputy chief investment officer, wrote in the report: “There does not appear to be any positive factors for the U.S. stock market to continue the rally, and against the backdrop of a more bleak economic situation, there are risks heading into autumn. Investors should adjust their asset allocation in response to this environment.”
Goldman Sachs strategists warned that more selling is likely as global equities are on the verge of their weakest performance since the European debt crisis a decade ago. The MSCI AC World Index was on track for its longest slump since 2011 and quickly erased a recent rally that a team of Goldman strategists led by Peter Oppenheimer called a “bear market rally.”
“We expect the market to be nearing a step of weakness and volatility before a decisive trough takes shape,” the strategists said.