Market Highlights π‘ - 6 May 2024
*Signs of cooling labor market boost U.S. markets; Hang Seng index enters bull market territory
πΊπΈ S&P 500: 1.26% π
πΊπΈ Nasdaq: 1.99% π
πͺπΊ Stoxx 600: 0.49% π
π―π΅ Nikkei 225 Index: Closed
ππ° Hang Seng Index: 1.48% π
π¨π³ CSI 300 Index: Closed
* U.S. stocks extended gains on weaker-than-expected labor market data, while the U.S. 10-year Treasury yield fell 8 basis points to 4.50% and reignited investor bets that the Federal Reserve would cut interest rates this year, with the S&P 500 and Nasdaq The Nasdaq Composite Index rose 1.3% and 2.0% respectively.
* U.S. nonfarm payroll employment increased by 175,000 in April 2024, well below expectations of 238,000, while the unemployment rate also edged up 0.1% to 3.9%, indicating a cooling labor market.
* The U.S. ISM Services PMI fell to 49.4 last month from 51.4 in March (expected: 52.0), reaching its lowest level since December 2022 and showing a clear contraction in the services sector during the month.
* Asia-Pacific markets cheered on Friday as the Hang Seng Index extended a 1.5% gain, moving further into bull market territory on optimism that policymakers would further support economic growth at a Politburo meeting.
π‘ Future events: π‘
* China's Caixin Services PMI and final Eurozone Services PMI will be released on Monday.
π‘ Things you need today: π‘
1. Berkshire Hathaway $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ significantly reduced its holdings in Apple by about 13% in the first quarter of 2024 and held a record $189 billion in cash, while setting a record of more than $11 billion profit.
Berkshire Hathaway
2. Apple $Apple(AAPL)$
Apple
3. The U.S. Treasury Department is giving automakers additional flexibility on battery mineral requirements for electric vehicle tax credits for certain important trace minerals from China, such as graphite anodes.
4. John Williams, President of the New York Fed: βTheory and experience also demonstrate the importance of transparency and clear communication, including setting a clear, numerical long-term inflation target and taking appropriate actions to support achieving that goal target."
John Williams
5. India has lifted restrictions on onion exports since December and announced a minimum export price of $550 per metric ton for onion exports.
Indian Onions
β KEY TAKEAWAYS:
The cooling of the U.S. labor market means the economy is slowing at a measured pace, consistent with talk of a soft landing.
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Market Highlights - 6 May 2024
Here are the key highlights from the market on 6 May 2024:
U.S. markets: The S&P 500 rose by 1.26%, and the Nasdaq Composite Index increased by 1.99% on weaker-than-expected labor market data, indicating a cooling labor market. This led to investor bets that the Federal Reserve may cut interest rates this year.
Hang Seng Index: The Hang Seng Index in Hong Kong rose by 1.48% and entered bull market territory. This was driven by optimism that policymakers would further support economic growth.
U.S. labor market: The U.S. nonfarm payroll employment increased by 175,000 in April 2024, below expectations of 238,000. The unemployment rate also edged up 0.1% to 3.9%, indicating a cooling labor market.
U.S. ISM Services PMI: The U.S. ISM Services PMI fell to 49.4 in April from 51.4 in March, reaching its lowest level since December 2022. This indicates a clear contraction in the services sector during the month.
Apple: Apple's shares (AAPL) rose by 6% after the company reported better-than-expected second-quarter earnings and announced the largest stock buyback program in U.S. history, amounting to $110 billion.
U.S. Treasury Department: The U.S. Treasury Department is providing automakers with additional flexibility on battery mineral requirements for electric vehicle tax credits, specifically for certain important trace minerals from China, such as graphite anodes.
India onion exports: India has lifted restrictions on onion exports since December and announced a minimum export price of $550 per metric ton for onion exports.
These market highlights suggest that the U.S. labor market is cooling, which indicates a measured pace of economic slowdown. The Hang Seng Index's entry into bull market territory reflects optimism about further economic support. Apple's strong performance and the U.S. Treasury Department's flexibility on battery mineral requirements are notable developments.
Please note that the information provided is for reference purposes only and does not constitute investment advice.
Sources:
Asia-Pacific markets higher, tracking gains in global markets after soft U.S. jobs report
China's Services Activity Eases in April but Still Solid, Caixin PMI Shows
MORNING BID ASIA-Green light from financial conditions, FX calm
Note: The news articles provided are from external sources, and their accuracy and reliability are the responsibility of the respective publishers.
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