To The Moon

Wall Street slumped as investors awaited CPI and earnings data, while Hong Kong stocks slumped on continued growth headwinds.

 🇺🇸 S&P 500: -0.04%📉

🇺🇸 Nasdaq: 0.03% 📈

🇪🇺 Stoxx 600: 0.49% 📈

🇯🇵 Nikkei 225 Index: 0.91% 📈

🇭🇰 Hang Seng Index: 0.05%📈

🇨🇳 CSI 300 Index: -0.88% 📉

* U.S. markets were muted ahead of key inflation data and the start of first-quarter earnings season this week, while a rise in the 10-year U.S. Treasury yield to 4.42% also weighed on stocks.

* Asian stock markets were muted, with Hong Kong's Hang Seng Index flat at 0.05% and Shanghai's CSI 300 Index down -0.9%, as investors remained cautious as China will release inflation data and foreign trade data this week.

💡 Incoming events: 💡

* Japan is to release consumer confidence data on Tuesday.

* U.S. CPI and core CPI to be released on Wednesday

* ⁠ On Thursday, the US Federal Open Market Committee meeting minutes, weekly unemployment claims, the European Union and European Central Bank interest rate decisions, and China's consumer price index will be released.

* At the end of the week, the U.S. will release its preliminary reading of Michigan consumer confidence on Friday, while China will report its year-on-year exports.

💡 Things you need to know today: 💡

1. Blackstone Real Estate announced a $10 billion acquisition of all outstanding common shares of Apartment Income REIT, which owns 76 high-quality rental residential communities, indicating their optimism that rental residential and commercial real estate may rebound.

Blackstone Real Estate

2. The White House will announce $6.6 billion under the Chip Act to support TSMC's investment of more than $65 billion to build three cutting-edge manufacturing plants in Arizona and then transfer advanced chip manufacturing to the United States.

White House Chip Act

3. Against the backdrop of an intensifying real estate market crisis, stock market volatility and falling deposit rates, Chinese investors looking for alternative investments have poured into the China Asset Management Shanghai-Shenzhen-Hong Kong Gold Industry Stock ETF, causing gold prices to hit a record high on Monday, making the ETF Trading suspended.

4. Didi Global and GAC Aion plan to mass-produce self-driving taxis based on GAC electric SUVs equipped with Didi's level 4 autonomous driving technology by 2025, with the goal of supplying approximately 10,000 taxis for Didi's online ride-hailing service car. 

Didi Global & Gac Aion

✅ Key Points:

U.S. markets got off to a slow start in the second quarter as a stronger-than-expected U.S. jobs report on Friday came after strong manufacturing data led investors to scale back bets on a rate cut by the Federal Reserve in June. 

As we know, interest rates and bank profitability are connected, with banks benefiting from higher interest rates. When interest rates are higher, banks make more money by taking advantage of the greater spread between the interest they pay to their customers and the profits they earn by investing. A bank can earn a full percentage point more than it pays in interest simply by lending out the money at short-term interest rates. Since the interest rate remains high, I believe bank stocks will continue to stay very profitable for this quarter earnings. $Citigroup(C)$  $JPMorgan Chase(JPM)$  $Wells Fargo(WFC)$  $Bank of America(BAC)$ $Goldman Sachs(GS)$   . Moreover, higher interest rates tend to reflect a healthy economy. Demand for loans to businesses and consumers should be high, with the bank making better returns on those loans. 

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