To The Moon

Highlights of 26 Feb market: 

U.S. stocks fell ahead of PCE data; Hong Kong's Hang Seng Index fell as investors remained cautious about upcoming corporate earnings results.

🇺🇸 S&P 500: -0.37% 📉

🇺🇸 Nasdaq: -0.13% 📉

🇪🇺 Stoxx 600 Index: -0.36% 📉

🇯🇵 Nikkei 225 Index: 0.35% 📈

🇭🇰 Hang Seng: -0.54%📉

🇨🇳 CSI 300: -1.04% 📉

• Wall Street fell on Monday, with the S&P 500 and Nasdaq Composite down -0.4% and -0.1%, respectively, as investors rebalanced their portfolios ahead of this week's Personal Consumption Expenditures price index (PCE) data , the market currently rules out the possibility of an interest rate cut by the Federal Reserve at its March meeting, and postpones easing expectations from May to June.

• European Central Bank (ECB) President Christine Lagarde* said the fall in inflation in the euro zone will continue but policymakers will need to see more evidence to ensure price stability targets are on track , the market is gradually dimming hopes of interest rate cuts in the first half of 2024.

💡 Future events: 💡

• Investors should focus on Japan's inflation rate due out on Tuesday, as well as US durable goods orders and CB consumer confidence.

• On Wednesday we will have economic confidence and consumer sentiment data from the European Union as well as preliminary US GDP growth for the fourth quarter of 2023.

• Japan's retail sales and industrial production will be released on Thursday, along with the U.S. core PCE price index, personal spending and jobless claims.

💡 *Five things you need to know today*: 💡

 1. On Monday, European Central Bank President Christine Lagarde told the European Parliament, “Our restrictive monetary policy stance, accompanied by a strong decline in headline inflation and a solid anchoring of long-term inflation expectations, is to prevent continued wage price declines. The upward spiral provides a strong guarantee."

 2. According to an interview with CNBC, JPMorgan Chase CEO Jamie Dimon said that although he remains cautious about the economic outlook, the market sentiment for the stock market and M&A is improving. “Confidence is increasing and M&A discussions are beginning to increase. ".

3. Goldman Sachs said in a report that a series of negative profit warnings indicate that the general earnings of Chinese companies face downside risks (14% year-on-year), while companies in the Asia-Pacific region are expected to achieve high double-digit growth in the fourth quarter (a year-on-year growth of 15%), with Japanese and Indian companies leading the way.

 ✅ Key Points:

Recent softening of regulatory measures and monetary policy in China has temporarily stabilized market sentiment. Investors need to see more signs of economic recovery and stronger corporate earnings growth before Chinese stocks can continue to rise. But then, I am still bullish with Chinese stocks like $Baidu(BIDU)$  $iQiyi Inc.(IQ)$  as they are releasing their earnings this week. Any good positive results will trigger very bullish movement like the case of $Li Auto(LI)$ which might ease the sector tension, particularly for EV for this case. As consequent, rivals from the same sector like $Rivian Automotive, Inc.(RIVN)$  and  $Faraday Future Intelligent Electric Inc.(FFIE)$  will get a boost too for the overall positive sentiment. 

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