Market Highlights π‘ - 18 June 2024
* Wall Street jumps on rising enthusiasm for artificial intelligence; Chinese stocks reel as economic data shows lackluster growth
πΊπΈ S&P 500: 0.77% π
πΊπΈ Nasdaq: 0.95% π
πͺπΊ Stoxx 600: 0.09% π
π―π΅ Nikkei 225 Index: -1.83% π
ππ° Hang Seng Index: -0.03 π
π¨π³ CSI 300 Index: -0.15% π
* U.S. stocks rose, led by technology stocks, with the S&P 500 $S&P 500(.SPX)$
* Asia-Pacific stocks fell, with Hong Kong's Hang Seng Index and Shanghai's CSI 300 Index falling -0.03% and -0.15% respectively, as industrial output lagged expectations, pessimism increased, and the slowdown in the real estate sector showed no sign of easing despite policy support , which adds pressure on Beijing to boost economic growth. The Nikkei 225 fell -1.83% to close at 38102 points.
* The People's Bank of China kept the key policy rate MLF unchanged at 2.5%, in line with expectations as narrowing interest rate spreads and currency depreciation remain the main constraints on easing monetary policy, while rolling over maturing medium-term loans and withdrawing funds from banks The system siphoned off some funds.
* China's industrial production rose 5.6% year-on-year in May, missing expectations for 6% year-on-year growth. However, retail sales exceeded expectations, growing by 3.7% year-on-year, with total retail sales of consumer goods reaching RMB 3.9 trillion, of which sales in urban and rural areas increased by 3.7% and 4.1% year-on-year respectively.
π‘ Future events: π‘
* U.S. core retail sales, monthly retail sales, will be released on Tuesday.
* On Wednesday, Japan will release the minutes of its monetary policy meeting.
*On Thursday, U.S. jobless claims, year-on-year exports and year-on-year imports were all on investors' radar.
π‘Things you need to know today:π‘
1. The U.S. Supreme Court agreed to hear Nvidia's $NVIDIA Corp(NVDA)$ appeal to dismiss a securities fraud lawsuit, claiming that the artificial intelligence chip maker misled investors about the extent of its sales to the unpredictable cryptocurrency market.
US Supreme Court
2. Warren Buffett's Berkshire Hathaway reduced its stake in BYD $BYD COMPANY(01211)$ , the world's largest seller of electric vehicles, selling 130 units for $39.8 million. 10,000 Hong Kong-listed stocks, the shareholding ratio dropped from 7.02% to 6.90%. Berkshire initially invested $230 million in 2008 and began selling shares in 2022 after the stock's value increased more than 20 times.
BYD
3. The Bank of Japan is likely to cut annual bond purchases by about 24 trillion yen in guidance to be released next month while not raising interest rates until at least September, former BOJ board member Makoto Sakurai said on Monday.
Makoto Sakurai
4. Chinese semi-solid EV battery maker WeLion New Energy Technology's May deliveries rose 31% year-on-year, with the company supplying 482.9 MWh of cells as demand for extended-range EVs increases. The surge in WeLion deliveries, backed by NIO $NIO-SW(09866)$
WeLion x Nio
5. DC Byte's 2024 Global Data Center Index shows that Malaysia is quickly becoming the main data center hub in Southeast Asia, with Johor Bahru being the fastest growing data center market in the region, with a total data center supply of 1.6 gigawatts. Catalysts include growing demand for artificial intelligence and cloud computing, foreign investment, and preferential policies such as the Green Channel Program.
β KEY TAKEAWAYS:
U.S. Treasury yields are expected to level off and fall slightly by the end of the year, with the first rate cuts starting with two cuts of 25 basis points or less, as strong economic data and above-target inflation dampen expectations for a rate cut from the Federal Reserve.
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Based on the market highlights for June 18, 2024:
Wall Street experienced gains, driven by increasing enthusiasm for artificial intelligence. The S&P 500 rose by 0.77%, and the Nasdaq increased by 0.95%.
Chinese stocks, on the other hand, faced challenges as economic data indicated lackluster growth. The Hang Seng Index in Hong Kong declined by 0.03%, and the CSI 300 Index in Shanghai fell by 0.15%.
In the US, stocks, particularly in the technology sector, performed well. The S&P 500 and Nasdaq Composite rose by 0.8% and 1.0%, respectively. Investors were awaiting key economic data and comments from Federal Reserve members regarding interest rates.
Asia-Pacific stocks experienced a decline, with the Nikkei 225 Index in Japan falling by 1.83% to close at 38,102 points. Industrial output lagged expectations, pessimism increased, and the real estate sector's slowdown persisted despite policy support.
The People's Bank of China maintained the key policy rate MLF at 2.5%, in line with expectations. The decision was influenced by narrowing interest rate spreads and currency depreciation, which continue to constrain monetary easing.
NIO, a Chinese electric carmaker, reported a 31% year-on-year increase in May deliveries, supplying 482.9 MWh of cells. This surge in deliveries, supported by NIO's partnership with WeLion, suggests increasing demand for NIO electric vehicles.
Malaysia is emerging as a prominent data center hub in Southeast Asia, with Johor Bahru experiencing significant growth in the data center market. The region's total data center supply is 1.6 gigawatts, driven by factors such as the demand for artificial intelligence and cloud computing, foreign investment, and preferential policies like the Green Channel Program.
It is expected that U.S. Treasury yields will stabilize and slightly decrease by the end of the year. Strong economic data and above-target inflation are dampening expectations for a rate cut from the Federal Reserve, with the possibility of two cuts of 25 basis points or less.
Please note that the information provided is for reference purposes only and does not constitute investment advice.
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