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Real-time News
February 9th - Since the beginning of the year, the National Integrated Circuit Industry Investment Funds (Big Fund) share reduction activities in the semiconductor sector have continued to attract market attention. On the evening of February 8th, Anlu Technology announced that its shareholder, the first phase of the Big Fund, plans to reduce its holdings by no more than 2% of the companys total share capital within the next three months. This marks the third time Anlu Technology has faced a share reduction plan from the Big Fund since 2025. Meanwhile, several other semiconductor companies, including Shanghai Silicon Industry, Telink Microelectronics, and Huizhi Microelectronics, have also recently disclosed the latest progress or plans for share reduction by the Big Fund. Based on the information released, both the first and second phases of the Big Fund have conducted share reduction operations, involving mostly listed semiconductor industry chain companies. Despite the frequent share reductions in the short term, industry insiders generally believe that this is a normal investment exit behavior for the Big Fund as an industry investment fund, and its long-term strategic direction of accompanying industry growth and supporting domestic substitution remains unchanged.On February 9th, KSTAR announced that its controlling shareholder, Ningbo KSTAR Venture Capital Partnership (Limited Partnership), plans to reduce its holdings of the companys shares by no more than 5.8222 million shares, representing 1% of the companys total share capital, within three months after 15 trading days from the date of the announcement, through block trades or centralized bidding. The reason for the reduction is its own funding needs; the shares are from shares issued before the initial public offering and shares transferred through equity distribution.TD Cowen: Lowered its target price for Estée Lauder (EL.N) from $130 to $115.AMC Theatres (AMC.N) has filed for listing hybrid securities.February 9th - Morgan Stanley strategists stated that the hype surrounding artificial intelligence (AI) supports a strong sales outlook, and US tech stocks are poised for further gains. The team, led by Michael Wilson, noted that revenue growth expectations for large-cap tech stocks have reached "decade-high levels," while valuations have declined following recent market volatility. Meanwhile, the plunge in software stocks has created "attractive entry points" for companies like Microsoft and Fiat Group. The report stated, "Situations like last week are not uncommon during major investment cycles. Nevertheless, the fundamental tailwinds for AI-enabled sectors remain, and we believe the value of AI application stocks is still not fully recognized by the market."

GBP/USD falls to around 1.2370 as the BoE considers taking swift action ahead of UK inflation and US purchasing managers' indices

Alina Haynes

Apr 17, 2023 13:53

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On Monday morning, the GBP/USD currency pair retested an intraday low of 1.2390 after extending Sunday's decline from a 10-month high. To provoke adverse after breaking a four-week uptrend, the Cable pair explains the most recent concerns emanating from the United Kingdom (UK) and the optimism surrounding the Federal Reserve (Fed).

 

According to the Financial Times (FT), "The Bank of England is considering a major overhaul of its deposit guarantee scheme, including increasing the amount covered for businesses and compelling banks to pre-fund the system to a greater extent to ensure faster access to cash when a lender collapses."  The revelation fuels banking concerns in the United Kingdom and places pressure on the Cable duo.

 

UK Chancellor Jeremy Hunt's concerns about US subsidies may also be exerting downward pressure on the GBP/USD exchange rate as British firms rush to claim benefits before leaving the country. According to the news, "Chancellor Jeremy Hunt warned Sky News that Britain should be wary of any new subsidies, warning that they could undermine the economy and possibly even spark a protectionist trade war."

 

A larger-than-expected decline in US retail sales was unable to offset positive data from US industrial production and the University of Michigan's (UoM) consumer confidence index from the previous day. Despite this, US retail sales decreased by 1.0% in March compared to the predicted -0.4% decline and February's -0.2% decline. As opposed to the 0.2% market consensus and previous reading, Industrial Production increased by 0.4% in the month in question. The preliminary result of the University of Michigan's (UoM) Consumer Confidence Index for April, which increased to 63.5 from 62.0 analysts' expectations and previous readings, was also encouraging. In addition, inflation forecasts for the next year increased from 3.6% in March to 4.6% in April, while inflation forecasts for the next five years decreased by 2.9% during the same month.

 

Notably, Fed officials have recently appeared more hawkish than their BoE counterparts, which has exerted additional pressure on the GBP/USD exchange rate.

 

In this environment, the S&P 500 Futures exhibit modest gains following Wall Street's pessimistic close, while bond yields remain unchanged following weekly increases.

 

Moving forward, the current week is crucial for GBP/USD speculators as it contains a variety of high-quality inflation, employment, and UK PMI data. These data may be used to support the Bank of England's (BoE) officials' waning hawkish inclination and may keep bears in play. However, the US PMIs and Fed discussions should not be disregarded when looking for clear guidelines.

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