Daily Archives: April 15, 2024

BofA Securities last week lowered its target price on Intel (36.0801, 0.39, 1.09%) shares to $44 from the previous price of $50 per share, while maintaining a neutral rating on the stock. Prior to this target price adjustment, Intel conducted a re-segmentation of its business, which resulted in a change in the valuation method of the company’s IDM (vertical integration from chip design to production) business, including products and foundry services. . A report from Bank of America Securities pointed out that Intel’s future depends largely on CEO Pat Gelsinger’s vision to transform the chip company into a semiconductor foundry and compete with other companies in the industry. However, Bank of America analysts commented on Intel’s current situation that although Intel’s foundry business has made some achievements in external design, it still relies heavily on the company’s internal design team. This dependence has prompted the valuation of the IDM business to shift to a comprehensive assessment. approach rather than evaluating each part individually. Therefore, the new price target set by Bank of America this time is 23 times the expected…

PricewaterhouseCoopers released the “Report on the Luxury Goods Market in Mainland China and Hong Kong”, predicting that by 2030, China will replace the United States as the world’s largest personal luxury goods market with a market size of US$148 billion. PwC pointed out that China’s personal luxury goods market will be driven by large-scale intergenerational transfer of wealth, continued development of new consumer groups, vigorous development of experiential consumption and luxury lifestyle, high growth potential in Hainan, and further integration of online services with online services. Further expansion will be driven by factors such as channel improvement and other factors. In the next 30 years, China will have 92 trillion yuan of wealth passed down to the second generation of high-net-worth individuals. In terms of the Hong Kong market, PwC predicts that the Hong Kong personal luxury goods market will grow at an average compound annual growth rate of 4.5% from 2023 to 2030, reaching HK$125.8 billion in 2030. Among them, the three major categories of luxury accessories with the largest growth are leather products, Jewelry and watches. Zheng Huanran,…

JPMorgan Chase & Co. strategists say don’t expect an upbeat corporate earnings season to drive stocks higher because much of the optimism has already been priced in after this year’s record gains. A research team led by Mislav Matejka wrote in a report that profit expectations for the first quarter have been lowered during the reporting period, which lowers the threshold for U.S. companies to exceed expectations. Strategists said that after excluding technology giants, S&P 500 companies’ profits are expected to decline across the board. At the same time, investor positions look “very stretched,” Matejka said, with major stock indexes hitting record highs on optimism about economic growth and interest rate cuts. He said: “The stock market has performed well post-earnings, suggesting investors are more optimistic than the pessimistic earnings forecasts conveyed by sell-side analysts. We need to see significant earnings acceleration to justify current stock valuations “It’s reasonable and we’re concerned that this may not happen.” Matejka said that so far, half of U.S. companies have performed below market expectations on the day of earnings reports. Despite a 10%…

The Bank of Japan is moving toward a more discretionary approach to monetary policy, people familiar with the matter said. Three people familiar with the matter said that the mere forecast that inflation will remain at the target level of around 2% until early 2027 does not indicate that interest rates will be raised in the near future.

The exchange rate of the yen against the U.S. dollar in the Tokyo foreign exchange market fell to more than 153.8 yen per U.S. dollar on the 15th, a record low in nearly 34 years. Kyodo News reported that interest rate differentials between Japan and the United States prompted investors to sell Japanese yen and buy U.S. dollars. In addition, the latest developments in the situation in the Middle East have also enhanced the appeal of the U.S. dollar as a “safe haven asset.” The consular building of the Iranian Embassy in Syria was attacked by a missile on April 1, killing at least 13 people. Iran and Syria said the attack was carried out by Israel. Iran’s Islamic Revolutionary Guard Corps issued a statement in the early morning of the 14th, announcing that it had launched dozens of missiles and drones at Israeli targets. An Israeli military spokesman said that more than 300 drones and missiles were fired at Israel, and “99%” of them were intercepted. As of 3 pm on the 15th, the Japanese yen exchange rate was…

U.S. stock futures climbed ahead of the opening bell on Monday as global markets calmed and traders speculated that diplomatic efforts would help prevent an escalation in the conflict between Iran and Israel. The dollar and U.S. Treasuries fell, while gold remained strong near $2,350. As of press time, Dow futures were up 0.5%, S&P 500 futures were up 0.6%, and Nasdaq futures were up 0.6%. The German DAX index rose 1.1%, the British FTSE 100 index fell 0.3%, the French CAC 40 index rose 1.0%, and the European Stoxx 50 index rose 1.1%. U.S. Treasuries fell along with the dollar. U.S. WTI crude oil fell below $85 a barrel. Gold prices are hovering at $2,350. Investor nerves remained high over the prospect of Israeli retaliation against Iran, but investors took some comfort when Iran’s mission to the United Nations said the issue “can be considered closed.” The United States and other countries have also called on all parties to exercise restraint and strive to avoid the outbreak of a full-scale regional war. According to officials familiar with the development,…

U.S. retail sales in March rose higher than economists expected, further weakening investor confidence in the Federal Reserve starting to cut interest rates this year. Most U.S. Treasury bond yields climbed to new highs since the beginning of the year, with the 2-year Treasury bond yield approaching 5%. The 10-year Treasury yield rose 10 basis points to 4.62%, the highest level since November 14 last year. Expectations for monetary policy have shifted toward the Federal Reserve starting to cut interest rates later, with officials saying rate cuts would require a higher degree of confidence that inflation is continuing to rise toward its 2% target. Traders no longer fully expect a rate cut before November, whereas at the start of the year markets were fully pricing in rate cuts starting in March.

Glonghui, April 15 | US hedge fund Shah Capital has recommended that Covid-19 vaccine maker Novavax appoint two new independent directors, Suresh Katta and Venkat Peri, to its board. Shah Capital, which owns about 6.7% of Novavax’s outstanding common stock, said the low share price reflected the board and management’s failure to capitalize on many important competitive advantages and seize opportunities in the overall market. “We welcome the views of our shareholders and value their input on our strategy,” Novavax said in a statement. Novavax is one of the most shorted stocks on the Nasdaq (16175.0941, 0.00, 0.00%) and is currently trading near all-time lows. As of last trading day’s close, the stock had fallen more than 53% in the past 12 months. The stock rose about 3.5% premarket.

The convergence of interest rate cut expectations is rewriting the narrative of global capital markets. Recently, due to the impact of U.S. economic fundamentals such as inflation and employment that exceeded expectations, market expectations for the Federal Reserve to cut interest rates within the year have declined. The “anchor of global asset pricing” has made waves again. The 10-year U.S. Treasury yield recently broke through the 4.5% mark and remains above this point. Some market participants are worried that the “nightmare” of 10-year U.S. bond yields pointing to 5% may strike again. Analysts believe that the current asset prices are more reflected in the correction of front-running transactions in anticipation of interest rate cuts. Looking ahead, interest rate cut expectations may continue to swing driven by data and geopolitics, affecting the trend of U.S. bond yields. Multi-maturity U.S. Treasury yields rise The rapid rise in U.S. bond yields has once again attracted market attention. On April 10, local time, as the U.S. Consumer Price Index (CPI) in March exceeded expectations across the board, the market was worried about the prospect…

In March, U.S. stocks continued to perform strongly. Exchange-traded funds (ETFs) continued to be favored by investors, with large capital inflows, while technology ETFs experienced net outflows. Data show that in March, global investors invested US$126.5 billion in ETF products in the US market. This data is second only to the last two months of 2023 and the third highest monthly inflow since 2021. In this round of buying boom, stock ETFs took over US$96.6 billion, showing that investors still have a relatively positive attitude towards US stocks. In terms of themes, industrial stock ETFs are the most popular, with net inflows of US$1.4 billion. This is the strongest performance of industrial themed stock ETFs since July 2023; raw materials and energy industry ETFs have a net inflow of US$1.3 billion and US$600 million respectively. Net inflows followed closely, and these are industries that are highly cyclical and highly dependent on economic performance. The capital movement in March sent an important signal. Technology ETFs experienced a net outflow of US$600 million, which was the first net outflow since June last…