Bank of America reported a successful quarterly earnings report and its share price rose nearly 5% upon opening, prompting the leading US stock index to open higher on Monday (17). the new British Chancellor of the Exchequer has announced the withdrawal of the tax relief.GBPThe exchange rate against the dollar rose in response to the news, while bond yields fell and investors’ risk appetite improved.
Before the deadline,Industrial average of the Dow Jonesincreased by more than 660 points, or nearly 2.2%,Nasdaq Composite Indexincreased by more than 340 points or nearly 3.3%,S&P 500 Indexup to nearly 100 points or nearly 2.8%,Semiconductor of PhiladelphiaThe index was up nearly 3.5%.
New British Chancellor of the Exchequer Jeremy Hunt announced on Monday the cancellation of previously announced tax cuts by Liz Truss’s government in an effort to salvage investor confidence, after the news broke.GBPOn the upside, UK government bond yields fell short-term.
In this regard, Neil Birrell, chief investment officer of Premier Miton Investors, said that this means that market volatility should be reduced, but the uncertainty about the UK political situation has not disappeared, but it could increase. For foreign investors looking to invest in foreign countries, this tug-of-war may be good news in the short term, but the long-term impact is still unknown.
In the United States, a preliminary survey released on Friday by the University of Michigan showed that although consumer confidence has increased, both long and short-term inflation expectations have increased, which is bad news for the Federal. Reserve (Fed) and the increase continues to grow strongly interest pressure.
At the moment, the market believes the Fed will raise interest rates by 3 yards (75 basis points) in November as a foregone conclusion, and the hope of raising interest rates by 2 yards (50 basis points) in December is becoming weaker and I fear it will continue to raise interest rates by 3 yards. Interest rates will eventually rise again next year.
Kansas Fed Bank President Esther George and San Francisco Fed Bank President Mary Daly have both revealed their hawkish stance in their recent speeches. George believes interest rates must continue to rise to cool prices, while Daly supports raising interest rates to restrictive levels. the final interest rate is expected to fall between 4.5% and 5%.
In terms of data, the Federal Reserve Bank of New York manufacturing index released Monday plunged to 9.1 in October, much less than expected -4 and the previous -1.5 value, contracting for three consecutive months.
In other markets, international oil prices fluctuated after a week of slowdown as concerns over an economic slowdown continued to weigh on the demand outlook and a weaker dollar also pushed gold prices higher, driving higher prices. prices in an uncertain economic environment.goldstate of safe haven.
As of 9:00 pm on Monday (17) Taipei time:
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Bank of America (BAC-US) rose 5.96% to $ 33.59 per share at the start of the trade
On Monday, Bank of America announced its outstanding financial report for the third quarter of fiscal year 2022. As rising interest income improved performance, revenue was pushed back to $ 24.61 billion and profit per share at $ 0.81, both better than market expectations of $ 23.57 billion and $ 0.77.
Meta platforms (META-US) rose 2.99% to $ 130.56 per share at the start of the trade
According to the Wall Street Journal (WSJ), Horizon Worlds, a Meta-owned VR community platform, failed to meet internal performance expectations, with fewer than 200,000 daily active users, far below its original goal of 500,000 and below its revised target of 280,000. people’s goals. To make matters worse, most users haven’t returned to Horizon Worlds after the first month, and the number of users has steadily declined since spring.
apple (AAPL-USA) rose 1.97% to $ 141.10 per share at the start of the trade
Morgan Stanley was bullish on Apple’s ability to withstand a recession and called the stock a “better choice,” causing shares to rise 1.4% before the market opened.
The main economic data today:
- US October New York Fed Manufacturing Index reported -9.1, expected -4, previously -1.5
Wall Street Analysis:
Morgan Stanley strategist Michael J. Wilson said the time was ripe for a short-term rebound per share in the absence of a decline in earnings or an official recession.
In his report, he wrote,S&P 500 IndexIt is down 25% this year and is testing a major low of support at the 200-week moving average, which could trigger a technical rally that would not rule out a rise to around 4,150, which would imply a 16% gain from its recent closure .
Notably, Wilson remains negative on the overall outlook for US equities. He believes inflation in the US, which has now peaked, could drop rapidly next year, but corporate earnings will decelerate sharply over the next 12 months.
