To The Moon

Wall Street fell back as expectations for interest rate cuts weakened; Hong Kong's Hang Seng Index ushered in a catch-up rise after receiving help from technology stocks.

🇺🇸 S&P 500: -0.72% 📉

🇺🇸 Nasdaq: -0.95% 📉

🇪🇺 Stoxx 600 Index: -0.79% 📉

🇯🇵 Nikkei 225 Index: 0.09% 📈

🇭🇰 Hang Seng Index: 2.36% 📈

🇨🇳 CSI 300 Index: -0.42% 📉

• U.S. stocks fell on Tuesday, with the S&P 500 and Nasdaq Composite down -0.7% and -1.0%, respectively, after data showed strong labor demand raised the possibility that the Federal Reserve may delay a rate cut, while the benchmark 10-year U.S. Treasuries hit a four-month high of 4.355%. US index might continue to retrace in short term. 

• U.S. JOLTS job openings rose slightly to 8.756 million in February from 8.748 million the previous month, further signaling that the labor market remains resilient.

• Eurozone HCOB's final March manufacturing PMI data contracted to 46.1, down from 46.5 in February, due to poor industrial performance in Germany and France.

• Asian markets were mixed, with Hong Kong's Hang Seng rising 2.4%, driven by gains in Xiaomi after reporting strong orders for its new electric vehicle, while China's CSI 300 index fell -0.2% as sentiment continued to build Optimism about improving business activity and expectations for more stimulus measures remain subdued.

💡 Things you need to know today: 💡

1. Oil prices surged on Tuesday, with Brent crude hitting $89 a barrel and WTI hitting $85 a barrel, as rising tensions in the Middle East, OPEC+ production cuts and concerns about supply disruptions weighed on prices upward pressure. For such, I believe $Occidental(OXY)$  will continue to trend higher. 

Oil

2. Intel's foundry business reported operating losses widening to $7 billion in 2023 and expected to break even by the end of the decade, blaming past profitability challenges on the slow adoption of ASML's advanced chip manufacturing technology. This is a pretty bad news for the company and will cause the share price to remain bearish $Intel(INTC)$  

Intel foundry

3. Tesla's sales fell short of expectations, with the company delivering 387,000 vehicles in the first quarter of 2024, down from 484,507 vehicles in the previous quarter, as competition in the electric vehicle market intensified, leading to lower prices and profit margins compression. I guess the company share price will remain very weak $Tesla Motors(TSLA)$  unless there is a new stimulus. 

Tesla 😅

4. The new electric car SU7 launched by Xiaomi aroused strong interest, with 89,000 reservations within 24 hours, challenging Tesla's Model 3 in China. Its stock price surged 9%, and its market value increased by US$7.6 billion. That's more than U.S. automakers like General Motors and Ford.

Xiaomi SU7

5. BYD (BYD), China's largest electric vehicle manufacturer, reported that sales fell by 43% in the first quarter of 2024 amid a fierce price war in China's electric vehicle market and an overall slowdown in China's electric vehicle sales demand this year. This will cause the company share price to remain weak for short term $BYD COMPANY(01211)$ .

✅ KEY TAKEAWAYS:

U.S. markets are in a paradoxical situation, with good news turning into worry as recent upbeat economic data reflect a strong economy and persistent inflation, delaying expectations of a rate cut by the Federal Reserve.

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