To The Moon

* The threat of intensifying conflicts in the Middle East caused the U.S. stock market to plummet; Chinese stock markets rebounded on the back of new capital market guidance.

🇺🇸 S&P 500: -1.20% 📉

🇺🇸 Nasdaq: -1.79% 📉

🇪🇺 Stoxx 600 Index: 0.13% 📈

🇯🇵 Nikkei 225 Index: -0.74% 📉

🇭🇰 Hang Seng Index: -0.72% 📉

🇨🇳 CSI 300 Index: 2.11% 📈

* Wall Street retreated on Monday, with the S&P 500 and Nasdaq Composite down -1.2% and -1.8%, respectively, while U.S. Treasury yields rose to 4.620% as tensions in the Middle East dampened investor risk appetite.

* U.S. retail sales data rose 0.7% in March, beating expectations for a 0.4% increase, showing strong consumer demand but also suggesting the Federal Reserve may delay cutting its key policy rate longer than previously expected.

* Asian markets were mixed, with the Hang Seng down -0.7% ahead of a slew of economic data due on Tuesday, but investors remained defensive amid heightened geopolitical tensions; while the CSI 300 rose 2.1% , as investors interpreted new guidelines for the country's capital markets as a positive sign for the stock market.

💡 Future events: 💡

* China's new home price monthly rate, industrial production annual rate, GDP growth rate annual rate, retail sales annual rate, unemployment rate and the EU ZEW Economic Sentiment Index will be released on Tuesday.

* Japan's export annual rate, EU core CPI annual rate final value and CPI annual rate final value will be announced on Wednesday.

💡 Things you need to know today: 💡

1. Goldman Sachs reported strong earnings that beat consensus expectations, with net interest income increasing to $1.61 billion in the first quarter of 2024 from $1.34 billion in the fourth quarter of 2023, driven by the bank's core global banking business, Significant growth in markets business and debt underwriting activity. $Goldman Sachs(GS)$  

Goldman Sachs

2. Tesla will lay off more than 10% of its global workforce due to falling sales and increasing competition in the electric vehicle market. CEO Elon Musk said it needs to reduce costs and improve productivity as the company prepares for the next phase growth. I believe the company $Tesla Motors(TSLA)$  share price will rebound, just like the case of many big companies like META, Amazon for example, after the lay off news and improve in margin.

Tesla layoff

3. The Hong Kong Securities and Futures Commission (SFC) conditionally approved Hong Kong's first Bitcoin and Ethereum ETFs, aiming to establish Hong Kong as a center for cryptocurrency-related products and allow investors to access digital assets through regulated channels. This will definitely stimulate crypto trading and beneficial to companies like $Coinbase Global, Inc.(COIN)$ $Riot Blockchain, Inc.(RIOT)$  

Hong Kong Crypto ETF

4. Sichuan Baicha Baidao Industrial, a large Chinese tea chain that operates the ChaPanda bubble tea chain, plans to raise US$330 million in Hong Kong's largest IPO in 2024. The funds will be used to support its expansion in China, including entering Specialty coffee industry.

ChaPanda drinks

✅ KEY TAKEAWAYS:

On the one hand, the recovery of the U.S. economy has brought short-term optimism, but beneath this optimistic veneer lies a deeper challenge: geopolitical tensions in the Middle East are escalating, with possible consequences for the global economy, especially if oil flows or disruptions to trade in the Strait of Hormuz.

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