Market Highlights 💡 - 13 June 2024

* Wall Street hits record high on Fed decision day; China CPI misses expectations, up 0.3% year-over-year

🇺🇸 S&P 500: 0.85% 📈

🇺🇸 Nasdaq: 1.53% 📈

🇪🇺 Stoxx 600: 1.09% 📈

🇯🇵 Nikkei 225 Index: -0.66% 📉

🇭🇰 Hang Seng Index: -1.10% 📉

🇨🇳 CSI 300 Index: 0.05% 📈

* U.S. stocks rose to new highs, with the S&P 500 and Nasdaq Composite up 0.9% and 1.5% respectively, after inflation data showed continued slowdown and the Fed kept its interest rates unchanged, but the latest economic forecasts showed There will be only 25 basis points of interest rate cuts this year.

* U.S. consumer inflation slowed to 3.3% annualized in May 2024 (forecast: 3.4%) as prices fell in most categories despite rising energy costs, while core inflation also slowed to 3.4% annualized %, reaching the lowest level since April 2021.

* The U.S. Federal Reserve held interest rates steady at 5.25% to 5.50% but revised its outlook for just one rate cut this year and forecast more cuts in 2025, signaling it is in no rush to lower borrowing costs.

* Asia-Pacific stocks were mixed, with Hong Kong's Hang Seng falling -1.1% to hit its lowest level in six weeks as consumer inflation fell below expectations and worries about weak demand in China grew, while China's CSI 300 index edged lower up 0.05%.

* In May 2024, China's consumer inflation rate rose by 0.3% year-on-year, remaining stable for the second consecutive month, but lower than the market forecast of 0.4%, while producer prices fell by -1.4% year-on-year (forecast: -1.5%), a record The smallest decline since February 2023.

💡 Future events: 💡

* U.S. PPI and jobless claims will be on investors' radar on Thursday.

* We end the week with the release of the Bank of Japan's policy rate, Japan's tertiary sector activity and the University of Michigan's preliminary inflation forecast.

💡 Things you need to know today: 💡

1. Fed Chairman Jerome Powell: "We view today's report as progress and confidence building. But we do not believe we have the confidence to begin easing policy at this time."

Jerome Powell

2. The EU stated that it will impose tariffs of up to 38% on Chinese electric vehicle imports. The EU believes that Chinese electric vehicles "seriously benefit from unfair subsidies" and pose an "economic harm threat" to European electric vehicle manufacturers. This might cause short term volatility in Chinese EV shares I believe $NIO-SW(09866)$  $XPENG-W(09868)$  $LI AUTO-W(02015)$  

3. Shares of European carmakers fell amid reports that the world's largest carmakers may face lawsuits in the UK for allegedly cheating on emissions tests, and concerns that China would retaliate if the EU imposes new tariffs.

4. Amazon Web Services will launch an infrastructure region in Taiwan in early 2025 to meet the "high demand" for cloud services in the Asia-Pacific region. The company expects to invest billions in Taiwan over the next 15 years dollar investment.

AWS

5. Broadcom's $Broadcom(AVGO)$  second-quarter results were strong and exceeded analysts' expectations. It reported earnings per share of US$10.96 versus the expected US$10.84. It also announced a 1-for-10 stock split, sending its stock price up 14.6% after hours.

✅ KEY TAKEAWAYS:

Wall Street continued to rally despite the central bank's more conservative interest rate outlook, as low inflation data released on the same day helped boost sentiment and the Fed's statement acknowledged "modest" progress on inflation.

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