market wrap
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Latest PMI for the Eurozone, Germany, France and the UK. EU CPI data. French monthly economic survey.Latest deals from Nestlé, Danone, Telefonica, Lloyds Banking Group, Rolls-Royce, Mercedes-Benz, Repsol, AXA, WPP, Engie, Zurich Insurance, Gold Fields, Mondi, Anglo American, Hikma Pharmaceuticals, Hargreaves Lansdowne, Iberdrola information
Opening call:
Stock futures rose ahead of a series of European corporate earnings and PMI data. Stock benchmarks were mixed in Asia. The dollar fell slightly. Government bond yields generally fell. Oil futures and gold rose.
stock:
European stock futures early Thursday as traders analyzed Nvidia’s impressive earnings and minutes from the Federal Reserve’s latest policy meeting, which suggests most Fed officials are concerned about cutting interest rates too soon. Market prices rose.
Chip stocks in Asia rose on Thursday after Nvidia’s strong quarterly results.
Nvidia’s performance serves as a bellwether of the strength of the AI boom, as big tech companies like Microsoft, Google, and Apple are betting big on the technology and need Nvidia’s hardware to power it. do.
“The market is catching up to what the Fed is saying,” said Dana D’Auria, co-chief investment officer at Envestnet. “Rate cuts aren’t going to happen as quickly as everyone expected.”
Early Thursday morning, Japan’s benchmark stock average broke its record for intraday highs set more than 34 years ago. This milestone was driven by foreign investors, encouraged by Japan’s corporate governance reforms and flocking to Japan as the lure of China wanes.
A lot of European corporate earnings and PMI data will be announced today.
Foreign exchange:
Spartan’s Peter Cardillo said the dollar is unlikely to appreciate much going forward as markets expect the Fed to start cutting interest rates in the coming months.
“The dollar index is at its highest level in the near term,” Cardillo said, predicting that DXY could still rise, but not by much. He said: “I don’t expect it to go much higher than 105.”
He added that the upcoming data is unlikely to have a big impact on the dollar unless there is a big surprise.
Bonds:
Wednesday’s decline sent long-term interest rates to their highest level in nearly three months after a weak sale of $16 billion in 20-year bonds and the release of minutes from the Federal Reserve’s January policy meeting. U.S. Treasury yields generally fell.
“There was a burst of optimism in the second half of 2023, but reality is returning as inflation persists,” said David Russell, global head of market strategy at TradeStation.
“Policymakers see no reason to rush to cut rates, especially with a strong labor market. Investors may return to wait-and-see mode, focusing on future employment and CPI releases. It could be adrift until a decision is made. Get more data. ”
energy:
Oil futures rose in Asia on signs of strong demand and escalating tensions in the Middle East.
The ANZ research team said spot price premiums over near-term futures have widened in recent weeks, pointing to a solid near-term demand outlook, with rising tensions in the Middle East also supporting prices. he added.
metal:
Gold rose as traders appreciated mixed signals.
UOB’s global economic and market research team says the Middle East conflict has boosted demand for safe-haven assets, benefiting precious metals, but the latest FOMC minutes released tonight dampen hopes for an early interest rate cut. I let it happen.
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In Asia, iron ore futures fell. Baocheng Futures analysts say iron ore futures price trends remain subdued as supply and demand patterns have not improved.
It added that prices are likely to remain capped as steel inventories pile up and the market focuses on China’s steel mills restarting production.
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Aluminum and nickel rose sharply overnight before falling on a possible technical correction. Metal prices soared on Friday after US President Biden announced plans to introduce major sanctions against Russia, according to the ANZ research team.
This could involve metals, which are the country’s main source of income, they added.
today’s top headlines
Japan’s Nikkei Stock Average finally hits an all-time high for the first time in 34 years
TOKYO – Japan’s benchmark stock price average on Thursday broke an intraday record set more than 34 years ago. This marks a milestone in Japan’s recovery from the bursting of the bubble that left the economy in a slump for decades.
In intraday trading on Thursday morning, the Nikkei Stock Average (225 shares) reached 39,029.00 yen, surpassing the previous high of 38,915.87 yen set on December 29, 1989, and the previous high on the same day in 1989. It also exceeded the mid-high price of 38,957.44 yen.
Fed minutes show concerns about premature rate cuts
At last month’s meeting, more Fed officials expressed concern about cutting rates too soon and allowing price pressures to persist, as opposed to the risks of keeping interest rates too high for too long.
“Most participants noted the risks of acting too hastily to ease policy stances,” the minutes of the January 30-31 meeting, published on Wednesday after a customary three-week delay, said. ” is stated. Only two officials cited risks “associated with maintaining an overly restrictive position for too long.”
US finds some Israeli claims against UN staff likely, others not
WASHINGTON – A new assessment by the U.S. intelligence community has found that some employees of the U.N. agency that distributes aid to the Palestinians likely took part in Hamas’ Oct. 7 attack on Israel, but the U.S. Some officials at the U.N. agency that distributes aid to the Palestinians say they cannot verify Israeli claims that more Palestinians are giving aid to the Palestinians. A person familiar with the report said the U.N. staff had ties to armed groups.
Last month, Washington and other Western capitals cut funding to the United Nations Relief and Works Agency, which provides aid to Palestinians. This comes after Israel shared findings that at least 12 Unruwa personnel were involved in a series of killings and kidnappings during Hamas attacks on Israel. It sparked the Gaza war.
Critical aid fails to reach Gaza as security vacuum widens
The delivery of humanitarian aid to the Gaza Strip has slowed as security deteriorates across the hotly contested enclave, where 2.2 million Palestinians face widespread hunger, disease and despair.
Efforts to provide life-saving aid such as food, medicine and other necessities have been paralyzed by a series of factors. According to United Airlines, these include a growing security vacuum, Israeli military attacks on convoys and logistics areas, increasingly violent attacks on aid trucks by desperate Palestinians seeking food, and an influx into northern Gaza. These include restrictions imposed by Israel on aid supplies, and protests by Israeli activists who blocked aid trucks. National officials and aid organizations.
As Ukraine aid stalls in Congress, advocates push for alternatives
Washington House Democrats and some Republicans are preparing an alternative plan to force a vote on aid to Ukraine, with Democratic leaders expected to pass a narrow bipartisan vote in the coming weeks to House Speaker Mike Johnson (R-Louisiana). ) are drafting special rules that will allow them to avoid this.
Plans to take advantage of a rare parliamentary process are in the early stages and may never come to fruition — Democrats hope to support U.S. allies Ukraine, Israel and Taiwan and deplete U.S. arsenals. It would allow a vote on the Senate’s $95 billion bill to replenish stocks. .
Lenovo records first revenue increase since 2022
Lenovo posted its first revenue increase since 2022, breaking five consecutive quarters of decline as the world’s largest PC maker battled weak demand for personal computers after the pandemic.
Lenovo said on Thursday that its sales for the three months ended December rose 3% from a year earlier to $15.72 billion. This was the first year-over-year revenue increase in the past 18 months and exceeded the $15.26 billion expected by analysts surveyed by FactSet. The company said the results were driven by its Solutions and Services business, which recorded double-digit sales growth.
Nvidia’s sales reach new heights as company predicts further expansion of AI boom
Nvidia’s revenue more than tripled in the fourth quarter. That’s as semiconductor manufacturers scrambled to meet demand for chips to power new artificial intelligence systems.
CEO Jensen Huang said AI has reached a “tipping point,” suggesting that demand for the computing power that underpins AI remains astronomical. “Demand is skyrocketing around the world, across companies, industries and countries,” he said.
EV maker Rivian to cut salaried employees by 10%
Rivian Automotive said it will lay off 10% of its salaried workforce and expects vehicle production to be flat this year, citing difficult market conditions for electric trucks.
The company said Wednesday that it expects to produce about 57,000 pickup trucks and sport utility vehicles this year, about the same number as in 2023, but less than analysts expected to produce about 65,000. Ta.
Boeing 737 executives withdraw from Alaska after eruption
The Boeing Co. executive responsible for the factory that made the jet involved in last month’s door plug explosion is leaving the company amid a broader management shakeup.
Boeing announced Wednesday that Katie Ringgold, who will oversee deliveries of the 737 to customers, will replace Ed Clark, vice president of the 737 program and general manager of the company’s plant in Renton, Washington.
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Main events expected on Thursday
07:00/DEN: February Economic Trend Survey
07:00/NOR: Fourth quarter personnel cost index – preliminary figures
07:00/DEN: January central government finances and debt
07:00/DEN: Fourth Quarter Labor Force Survey
07:45/FRA: February monthly economic trend survey (asset accumulation industry)
08:00/SVK: Harmonized CPI for January
08:00/AUT: January CPI
08:15/FRA: February French news PMI
08:30/GER: February German news PMI
09:00/POL: January retail sales
09:00/EU: February Eurozone Latest PMI
09:00/ITA: January CPI
(Read more) Dow Jones Newswires
February 22, 2024 00:15 ET (05:15 GMT)
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