Surprise Bank of Japan (BOJ) policy change, pushJPYThe exchange rate rally raised market expectations that the bank will join central banks in Europe and the US in raising interest rates. Major US indexes fluctuated in early trading on Tuesday (20) and US bond yields have risen.
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%,Semiconductor PhiladelphiaThe index fell by almost 0.2%.
The US stock futures index was mixed ahead of the market. The major US futures index closed yesterday at a new low since early November. The prospect of higher interest rates and lower earnings dampened market sentiment.
The Bank of Japan unexpectedly announced today that it will ease the 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 keep its policy rate unchanged at -0.1% and maintained its 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 bond yield ceiling hike is the first step towards tightening monetary policy. As the latest country in the developed market to insist on low interest rates, Japan is also starting to move towards the normalization of politics.
With the reduction of the liquidity introduced into the market by the Bank of Japan,JPYInevitably, the liquidity generated by loans will also decrease. JPMorgan strategist Kerry Craig pointed out that this means the Bank of Japan is signaling a gradual exit from its ultra-accommodative policy.JPYHe should benefit from that in the short term.
After the announcement of the Bank of Japan’s decision, the global market was shocked,JPYThe exchange rate against the US dollar once soared more than 3%, reaching a new high in 4 months; Japanese stock market plunged more than 2% in the afternoon; US bonds fell sharply,10-year US Treasury yieldIt once rose to 3.7% in the short term.
Foreign media reported that many economists are now overestimating whether the Bank of Japan will raise interest rates next year, joining the US Federal Reserve (Fed), European Central Bank (ECB) and other central banks in raising interest rates after a decade of unconventional stimulus measures… Deutsche Bank analysts said the Bank of Japan could raise interest rates when the market was impacted by aggressive central bank stance European and American last week.
In energy terms, international oil prices rose on Tuesday, supported by a weaker dollar and US internationalization to rebuild oil reserves, but uncertainty over the impact of rising new corona cases in China , the world’s largest importer of oil, limited increases in oil prices. Ahead of the deadline, scheduled for 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-USA) and Nike(OF THE UNITED STATES) will announce the latest financial report after the close of the US stock market. Among them, FedEx has a global business and a wide variety of commodities.
Starting at 22:00 on Tuesday (20) Taipei time:
Focus on actions:
glossy(LCID-US) rose 4.15% to $7.53 a share in early trading
US electric car start-up Lucid has raised more than $1.5 billion in a series of stock offerings, sending its shares up more than 5% 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 US$600 million was through a secondary market capital raise , selling 56 million shares.
NIO (NIO-USA) fell 1.04% in early trading to $10.95 a share
Chinese electric car maker NIO said on Tuesday that some user data and vehicle sales data prior to August last year were stolen, extorting the equivalent of $2.25 millionbitcoins, was reported to the police. According to a statement from Weilai Automobile, after a 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 said it will cooperate with the relevant law enforcement agencies to thoroughly investigate the incident and resolutely crack down on the theft and related data trading in accordance with the law.
amazon (AMZN-USA) rose 0.38% to $85.24 per share in early trading
US e-commerce giant Amazon on Tuesday reached an agreement with the European Union over two antitrust investigations into the use of shopper data, which will save it from a steep fine of up to 10% of its global revenue. Shares of Amazon rose nearly 0.3% 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 at 1.485 million units, and the previous value was 1.512 million units
- November US Monthly Building Permits Starting Rate was -11.2%, expected -2.5%, and was -3.3% prior
- November US Annualized Monthly New Housing Rate was -0.5%, -2.1% expected and -2.1% prior
- US housing starts reported an annualized total of 1.427 million in November, compared to 1.40 million expected and 1.434 million previously
Wall Street Analysis:
The MSCI stock index worldwide is down about 19% this year. Though US stocks have rebounded since the summer, Goldman Sachs’ strategic analysis team expects this bear market round to see more shocks and dips and hit a nadir late next year. They see interest rates spike, economic growth deteriorates, stabilises, and equities begin a sustained rally.
Bernstein analysts recently released a research report saying that despite the sharp sell-off in tech stocks this year, valuations aren’t quite as low as they were when they fell this year. The agency’s analysts expect the rise in tech stocks won’t be much higher than that of the broader market and reiterated their rating on the tech industry as equal to the broader market.
Bernstein’s analysts recommend investors adopt a “balanced strategy between expensive/growth and cheap/value tech stocks” next year. Among the very cheap tech stocks mentioned is Qualcomm (QCOM-USA), Intel(INTC-US), microns (MU-US), HP (HPQ-USA), HPE Technologies (HPE-USA)、eBay(EBAY-USA) and Dell (DELL-US); On the other hand, the most expensive stocks include Snowflake (SNOW-USA)、Datadog(DOG-USA)、Dash(DASH-US)、Zscaler(ZS-USA) and Roblox (RBLX-USA)。
