Investors are awaiting the release of a series of data reports, including the ISM non-manufacturing index for November in the United States, to judge the direction of the Federal Reserve’s (Fed) monetary policy at this month’s meeting. Market sentiment is cautious. .(5th) open lower.

Before the deadline, the Dow Jones Industrial Average fell nearly 190 points or nearly 0.5%, the Nasdaq Composite Index fell more than 50 points or nearly 0.5%, the S&P 500 Index fell more than 20 points or nearly 0.6%, and Broad -conductor Philadelphia The index fell almost 0.6% %.

The number of new non-farm jobs reported by the US last week was much better than expected in November, along with the jump in average hourly wages for the month, signaling fresh inflation risks and volatility sharp in the bond market; at the same time, Federal Reserve Chairman Powell’s dovish rhetoric could keep yields steady, but he emphasized that fighting inflation still has a long way to go.

In addition, the non-agricultural report boosted investor bets on where US interest rates will peak in the current tightening cycle. According to the interest rate futures market, investors expect interest rates to end in the range from 4.75% to 5%. Interest rates are expected to rise by 2 lat (50 basis points) this month.

In China, Reuters cited people familiar with the matter as reporting that the Beijing government could announce 10 new measures to ease the new crown pneumonia as soon as Wednesday (7th), in addition to the 20 relaxation measures announced in November, and they may intend to release them. in January next year Reduce prevention and control from the currently strictest “Class B and A Regulations” to “Class B and B Regulations”.

After the news came out, Chinese stocks rose across the board, and the Invesco Golden Dragon China ETF, which tracks the Nasdaq Golden Dragon China Index, rose nearly 6% in premarket trading. Alibaba (BABA-US) and Pinduoduo (PDD-US) rose 4.4% and 3.66%, respectively, while Tencent Music Entertainment (TME-US) gained 3.24%. Chinese electric vehicle brands NIO (NIO-US) and Xpeng (XPEV-US) rose 6% and 12%, respectively. Bilibili (BILI-US) rose 16%.

It is worth noting that based on policy changes, Morgan Stanley has upgraded the China stock rating to overweight. For the past two years, Morgan Stanley has been giving China stocks an equal weight rating. Morgan Stanley cited recent developments as “a sure path to an eventual reopening after COVID.”

In other news, the euro announced a bigger-than-expected fall in October retail sales on Monday, along with the final reading of the November composite purchasing managers’ index, which fell for the fifth consecutive month and was below the line. of expansion and contraction, two data points suggest that the euro zone economy may be on the way Good news for European Central Bank (ECB) policy makers.

From 22:00 on Monday (5th) Taipei time:
S&P 500 daily chart. (Photo: Juheng.com)
Stocks in focus:

Starbucks ( SBUX-US ) fell 1.21% in early trade to $103.78 a share

Deutsche Bank analyst Brian Mullan downgraded Starbucks to “Hold” from “Buy”, saying it was difficult for Starbucks’ stock price to continue to rise. Brian Mullan pointed out that the downgrade does not look bad on Starbucks, but an instruction to take steps to maintain a balanced risk-reward scenario.

Credit Suisse (CS-US) rose 4.29% in early trade to $3.52 a share

Saudi Arabia’s Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan and private equity investors are preparing to take a $500 million stake in Credit Suisse’s New York-based investment banking unit, Credit Suisse First Boston, according to multiple foreign reports. First Boston). Shares in Credit Suisse rose more than 2 percent in early trade following the news.

Tesla ( TSLA-US ) fell 2.31% in early trade to $190.35 a share

According to data from the China National Passenger Car Market Information Association, Tesla’s Gigafactory in Shanghai delivered 100,291 vehicles in November. However, another source pointed out that Tesla plans to reduce Model Y production at its Shanghai factory in December by more than 20% compared to November, and it is not clear why the reduction in production.

Today’s key economic data:
  • Month-on-month US durable goods orders growth rate revised up to 1% in October
  • The month-on-month growth rate of US factory orders in October is expected to be 0.7%, the previous value of 03%
  • The November US ISM non-manufacturing index is expected to be 53.1, the previous value was 54.4
Wall Street Analysis:

Morgan Stanley strategist Michael Wilson said investors would be better off taking profits, expecting the S&P 500 to resume its decline after breaking above the 200-day moving average last week, adding that the downward trend since the beginning of the year remains unchanged.

Simon Ballard, chief economist at First Abu Dhabi Bank, wrote in the report that it is clear that the longer China’s new corona epidemic restrictions are implemented, the more damage it will do to the country’s economy. Now China urgently needs policies to boost the labor market and help support domestic demand.


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