• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
More than 100 companies, including Nestlé and Uber (UBER.N), are calling on governments to make electrification a core part of their economic strategies.June 22 – At a press conference held today by the Legislative Affairs Commission of the Standing Committee of the National Peoples Congress (NPC), it was announced that the 68th meeting of the Standing Committee of the 14th NPC has decided that the 23rd session of the Standing Committee of the 14th NPC will be held in Beijing from June 23 to 26. The meeting recommended that the 23rd session of the Standing Committee of the 14th NPC: continue to deliberate on the draft revisions to the Trademark Law, the Certified Public Accountants Law, the Public Interest Litigation Law for Procuratorates, the Antarctic Activities and Environmental Protection Law, and the National Fire and Rescue Personnel Law; deliberate on the motion submitted by the NPC Financial and Economic Affairs Committee to review the draft revision of the Government Procurement Law; and deliberate on the motions submitted by the State Council to review the draft revisions to the Bidding and Tendering Law, the Financial Law, and the Law of the Peoples Bank of China.June 22 – The Ministry of Health of the Democratic Republic of Congo (DRC) announced on June 21 that the total number of confirmed Ebola cases in the country has risen to 1,003, with 254 deaths. The latest data released by the DRC Ministry of Health on social media platforms shows that 100 people have recovered, and 365 patients are currently in isolation or hospitalized. The countrys current contact tracing rate is 58%, lower than the health departments target of 95%. Relevant departments are intensifying contact tracing and investigation efforts, strengthening community outreach and mobilization, and improving case treatment and testing capabilities.The SC crude oil futures contract fell by 2.00% during the day, currently trading at 503.40 yuan per barrel.1. Market plunges: Precious metals traded weakly in the morning, with Shanghai silver falling over 5%, Shanghai gold over 3%, and platinum and palladium over 4%, indicating a concentrated sell-off by long positions accumulated at previous highs. 2. Fed shows hawkish stance: The Feds June decision kept interest rates unchanged, but new Chairman Warsh removed forward guidance indicating a tendency to cut rates in his debut meeting. Furthermore, the dot plot showed that half of the officials expect at least one rate hike this year, leading to an earlier-than-expected rate hike and a stronger dollar and US Treasury yields. 3. Geopolitical negotiations take a dramatic turn: After the US and Iran signed a memorandum of understanding, the first round of formal negotiations suddenly changed. Due to Israels continued attacks on Lebanon and threatening remarks from Trump, the Iranian delegation walked out of the meeting and announced the closure of the Strait of Hormuz, causing risk aversion and liquidity concerns to severely impact the market. 4. Fund Holdings Trends: Investment demand showed mixed performance. Holdings in the worlds largest gold ETF (SPDR) increased slightly to 1020.5 tons weekly, while holdings in the worlds largest silver ETF (iShares) decreased by 22.51 tons weekly, indicating a roughly equal increase and decrease in speculative funds. 5. Everbright Futures View: Current gold prices have largely priced in hawkish expectations, and marginal negative momentum is weakening. With falling oil prices, if inflation expectations remain stagnant, it may drive a short-term market correction due to easing concerns about tightening, allowing gold to maintain its bottom-range consolidation. 6. Nanhua Futures View: With geopolitical uncertainties in the Middle East, strong AI stocks, and rising expectations of interest rate hikes, precious metals are in a short-term weak position. However, in the medium to long term, the Peoples Bank of my country maintains its strategy of buying gold on dips, and the medium-term support logic for central bank gold purchases has not weakened significantly. 7. Shanghai Zhongqi Futures View: The pullback in gold prices is a result of the Federal Reserves policy shift towards hawkishness, changes in communication style, and a convergence of macroeconomic data. With interest rate hike expectations fully priced into the market, short-term adjustment pressures are expected. However, easing tensions in the Middle East are conducive to stabilizing inflation expectations, and precious metals will continue to exhibit two-way volatility. (The above content is compiled from publicly available market data from Everbright Futures, Nanhua Futures, Shanghai Zhongqi Futures, etc., and is for reference only, not investment advice.)

Wall Street closes higher, with the financial and healthcare sectors driving the advance

Charlie Brooks

Sep 09, 2022 10:33

15.png


Thursday's gains in the major Wall Street indexes were the result of investors digesting hawkish comments from government officials, which strengthened expectations for a significant interest rate hike later this month. The advances were mostly driven by financial firms and healthcare companies.


Concerns regarding the Federal Reserve's future steps to combat inflation led to choppy trading conditions.


Grace Lee, senior portfolio manager for equity income at Boston-based Columbia Threadneedle Investments, stated, "There is just a great deal of uncertainty, and I don't believe people will make a decision for more than five minutes or five seconds until there is a little more clarity or light at the end of the tunnel."


87% of money market traders believe that the Fed will raise rates by 75 basis points at its meeting this month.


Bank of America (NYSE:BAC), Barclays (LON:BARC), and Jefferies have said that they now predict a 75 basis point increase in interest rates. Bank of America and Jefferies expected a 50-basis point increase prior to Barclays' prediction of a 50- or 75-basis point hike. Jerome Powell, chairman of the Federal Reserve, indicated that the central bank is "totally committed" to controlling inflation and must endure until the objective is achieved. Charles Evans, president of the Federal Reserve Bank of Chicago, concurred with his fellow policymakers that containing inflation is "task one." Furthermore, investors anticipate the U.S. inflation report for August the following week for fresh indications as to whether the Federal Reserve will raise interest rates by a half percentage point or three-quarters of a percentage point at its next policy meeting on September 20-21.


Concerns over aggressive global monetary tightening froze equity markets on Thursday, as the European Central Bank raised interest rates by a record 75 basis points and forecasted further increases. The number of Americans filing new claims for unemployment benefits reached a three-month low last week, demonstrating the durability of the labor market despite the Federal Reserve's interest rate increases. The rate-sensitive S&P 500 bank index and the rate-sensitive S&P 500 healthcare sector both climbed by 2.8% and 1.8%, respectively, as the probability of another excessive rate increase grew. The announcement that Regeneron Pharmaceuticals Inc (NASDAQ:REGNanti-blindnessEylea )'s treatment was equally effective when provided at a higher dose and with a longer interval between injections boosted the healthcare sector. The stock of the corporation surged 18.8%.


Similar to the broader financial sector, healthcare is an extremely secure and still relatively affordable industry, according to Lee. To hit 31,774, the Dow Jones Industrial Average increased 193.24 points, or 0.61 percent. The S&P 500 rose 26.31 points, or 0.66 percent, to 4,006.18 and the Nasdaq Composite advanced 70.23 points, or 0.61 percent, to 11,863. The stock of GameStop Corp (NYSE:GME) increased by 7.4% after the video game retailer reported a quarterly loss that was smaller than expected. American Eagle Outfitters (NYSE:AEO) slumped 8.7% after the apparel maker missed second-quarter earnings estimates and announced it will stop its quarterly dividend to protect its finances from inflation.


The volume on U.S. exchanges was 10.19 billion shares, compared to the 20-day daily average of 10.37 billion shares.


On Wednesday, the major indexes on Wall Street climbed the most in about a month, as bond yields dipped after a recent rally fuelled by expectations of higher interest rates. Despite this, the S&P 500 is down over 16% so far this year.


On the NYSE, rising stocks outnumbered falling ones 1.34 to 1; on the Nasdaq, the ratio was 1.48 to 1.


Seven new 52-week highs and eight new lows were recorded for the S&P 500, while the Nasdaq Composite recorded thirty-seven new highs and one hundred fifty-three new lows.