The market has digested the aggressive interest rate hike measures taken by the Federal Reserve (Fed) to curb inflation. Major US equity indices opened flat and higher on Wednesday (7th), US government bond yields continued to rise and international oil prices both fell.US dollar indexincreasing.
Before the deadline,Industrial average of the Dow Jonesincreased by more than 100 points or almost 0.4%,Nasdaq Composite Indexincreased by more than 80 points or 0.7%,S&P 500 Indexincreased by almost 0.4%,Semiconductor of PhiladelphiaThe index was up 0.25%.
Later in the day, the Federal Reserve will publish the Beige Book, along with Cleveland Fed Bank President Loretta Mester, who will vote for the FOMC this year, Richmond Federal Bank President, FOMC 2024 voting member Thomas Barkin, and to Fed “second-ranked” command “Lael Brainard will speak one after the other. Investors will focus on the contents of the Beige Book and speak with officials to explore future clues to the Fed interest rate hike.
Barkin showed a hawkish stance in remarks early Wednesday, saying the Fed must raise interest rates to levels that dampen economic activity and hold them there until politicians are “confident” that inflation wheelie is retreating.
Thereafter, investors will await the release of the August Consumer Price Index (CPI) next Tuesday (13) .CPI rose 8.5% last July, which is lower than the 9.1 gain. % for June, and the latest data will be released next week 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 Central Bank Europe 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 depreciation intensified once it depreciated to 144 per dollar JPYrange, reaching a 24-year low since August 1998. The situation has again drawn attention against the backdrop of central bank efforts to curb inflation, with only the Bank of Japan (the central bank) maintaining a massive monetary easing.JPYStill hovering at 139 at the end of August JPYabout, but it depreciated by 5 in a week JPY。
In terms of energy, the European Union plans to propose at a meeting of the energy ministers of the member states on Friday (9th) to limit the wholesale price of electricity for the production of non-natural gas to 200 per megawatt hour. EUR。
The international oil price fluctuated at a low level as China’s trade data was below expectations,Brent crudeFutures traded close to July lows, due to expire in NovemberBrent crudeFutures fell 2.11% to $ 90.87 a barrel; West Texas crude oil for the October maturity fell 2.42% to $ 84.78 a barrel.
In other news, Apple (AAPL-USA) will hold the autumn new product launch conference at 01:00 Taiwan time on the 8th, and new products like the iPhone 14 will be unveiled one after another.
Starting at 9:00 pm on Wednesday (7th) Taipei time:
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NIO (NIO-US) rose 3.65% to $ 17.73 per share at the start of the trade
Chinese electric car maker NIO announced its depressing second quarter earnings ahead of market. Although revenues exceeded market expectations, gross profit continued to decline and net loss increased to $ 2.7 billion. Furthermore, the financial forecasts for the third quarter were far below market expectations. Shares fell more than 7% earlier.
NIO’s second quarter revenue reportRMB 10.29 billion yuan, better than the market’s expectations of 9.667 billion yuan; gross profit decreased 14.8% year on year to 1.34 billion yuan; the net loss recorded 2.74 billion yuan, an annual increase of 316.4% and a quarterly increase of 50.4%. Looking ahead, NIO currently expects third quarter revenue to be between RMB 12.85 billion and RMB 13.6 billion, compared to market expectations of RMB 16.23 billion. it is estimated between 31,000 and 33,000.
ChargePoint (CHPT-USA) rose 3.65% to $ 15.29 per share at the start of the trade
Electric vehicle charging station manufacturer ChargePoint is favored by investment bank Credit Suisse, which gives the stock a “Buy” rating, mainly because the market for electric vehicle charging stations is expected to be strengthened by “Inflation Cut Act, “and is optimistic that ChargePoint’s share price will rise by nearly 50%. Shares of ChargePoint were up more than 3% on news in pre-market trading.
Ui Path (PATH-US) plunged 19.11% to $ 12.61 per share at the start of trading
Shares of software developer UiPath fell nearly 20% in pre-market trading after the second quarter earnings report widened the loss and reduced 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 expected range of $ 229 million to $ 231 million, compared to $ 195.5 million in the same period last year. Last year; the loss per share was reported at $ 0.22, compared with $ 0.19 in the same period last year.
Looking ahead, UiPath expects third quarter revenue to be between $ 243 million and $ 245 million and full-year revenue from $ 1.002 billion to $ 1.007 billion, down from the previous $ 1.085 billion range at $ 1.09 billion.
The main economic data today:
- U.S. trade balance reported in July – $ 70.7 billion, projected – $ 70.3 billion, former value – $ 80.9 billion
Wall Street Analysis:
Vincent Mortier, chief investment officer of Amundi SA, and Matteo Germano, vice chief investment officer, wrote in the report: “There appears to be no positive factor for the US stock market to continue the rally, and against the backdrop of a gloomier economic situation. , there are risks ahead of the autumn. Investors should adjust their asset allocation in response to this environment. “
Goldman Sachs strategists have warned they are likely to be best-selling as global equities are on the verge of their weakest performance since the European debt crisis ten years 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 approach a level of weakness and volatility before a decisive low is formed,” said strategists.
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