To The Moon

Wall Street slips ahead of Nvidia earnings report; Hong Kong's Hang Seng Index boosted by supportive remarks from Chinese regulators

🇺🇸 S&P 500 Index: -0.31% 📉

🇺🇸 Nasdaq Composite Index: -0.85% 📉

🇪🇺 Stoxx 600 Index: -0.02% 📉

🇯🇵 Nikkei 225 Index: -0.66% 📉

🇭🇰 Hang Seng Index: 1.07% 📈

🇨🇳 CSI 300 Index: -0.06% 📉

U.S. stock markets declined, with the S&P 500 and Nasdaq Composite falling by -0.3% and -0.9%, respectively, despite stronger-than-expected durable goods orders. The technology sector led the decline as investors eagerly awaited Nvidia's earnings report.

U.S. durable goods factory orders in July 2024 grew strongly by 9.9% month-over-month, reversing the previous month's decline and surpassing the market expectation of 4.0%.

In August 2024, Germany's Ifo Business Climate Index fell to 86.6, its lowest level since February, as businesses became more pessimistic about the current situation and future outlook.

Asian markets were mixed, with Hong Kong's Hang Seng Index surging by 1.1% following supportive comments from Chinese capital market regulators, while the Nikkei 225 Index dropped by -0.7% under pressure from a stronger yen, retreating from a three-week high.

Market sentiment improved after Federal Reserve Chairman Jerome Powell reiterated future interest rate paths.

💡 Upcoming Events: 💡

- U.S. Conference Board Consumer Confidence Index, Japan's Core CPI Year-on-Year, and SPPI Year-on-Year will be released on Tuesday.

- On Thursday, U.S. preliminary GDP quarter-over-quarter data, initial jobless claims, and Japan's Consumer Confidence Index will be closely watched by investors.

- By the end of the week, we will see the release of the revised University of Michigan Consumer Sentiment Index, PCE Price Index MoM, Japan's Tokyo Core CPI YoY data, unemployment rate, preliminary industrial production MoM, retail sales YoY data, and EU Core CPI and CPI forecast YoY data.

💡 Today's things to know: 💡

1. The China Securities Regulatory Commission (CSRC), the highest market regulatory body in China, recently committed to enhancing investor confidence in China's capital markets.

CSRC

2. Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that it is time for the U.S. to lower interest rates, starting with a 0.25% cut at the next meeting. She believes there is nothing at present that can prevent the rate cut from happening.

Mary Daly

3. After increasing domestic political tensions, the Eastern Libyan government announced the closure of all oil fields, halting production and exports. Oil prices closed up 3% on Monday.

Libyan leader

4. Canada has joined the U.S. and the European Union in imposing tariffs on Chinese goods, including a 100% tariff on Chinese electric vehicles $Li Auto(LI)$  $NIO Inc.(NIO)$  $BYD COMPANY(01211)$  $XPeng Inc.(XPEV)$  and a 25% tariff on steel and aluminum imported from China.

5. PDD Holdings $Pinduoduo Inc.(PDD)$ , the parent company of Temu, faced its worst decline since going public. Its ADR plummeted by 29% after warning that revenue growth would inevitably slow. The founder also emphasized that PDD's current trajectory is unsustainable amid intense competition.

✅ Key Points:

With broader improvements in fundamentals and participation in profit growth, the ongoing market rotation should benefit the investment process by highlighting the importance of diversification.

@Daily_Discussion  @Tiger_comments  @CaptainTiger  @MillionaireTiger  @TigerGPT  @TigerStars