Last night and this morning: Powell’s testimony not hawkish enough? Good situation for global equities-For shring via /r/wallstreetbets #stocks #wallstreetbets #investing


Last night and this morning: Powell’s testimony not hawkish enough? Good situation for global equities—-For shring

Abstract:

  • The three major U.S. stock indexes closed up collectively, with the Nasdaq jumping 1.41%.
  • Popular Chinese stocks closed generally higher on Tuesday, with the Funky headline rising more than 15%.
  • U.S. oil closed higher by 3.8% on Tuesday, the highest closing price in two months.
  • senior Fed officials issued another hawkish voice: another member of this year’s ticket committee supported a rate hike in March.

Overseas markets

  1. U.S. stocks rebounded to close higher! Technology stocks again to support the Nifty jumped 1.41%

The three major U.S. stock indexes closed up collectively for the first time in the last six trading days. The S&P 500 closed up 0.92%, ending a five-day losing streak, getting rid of as of Monday for three consecutive days since the trough hit on December 21 last year. The Dow closed up 0.51% at 36252.02 points, down four days in a row as of Monday and three days in a row since December 23 last year to hit a new low. The Nasdaq closed up 1.41%, hitting a new closing high since last Tuesday, Jan. 4, up two days in a row.

U.S. large technology stocks rose across the board, led by Amazon closing up 2.4%, Meta rose nearly 2%, Apple rose nearly 1.7%, Google parent company Alphabet rose nearly 0.8%.

  1. The popular Chinese stocks closed generally higher on Tuesday, interesting headlines rose more than 15%

Popular Chinese stocks closed generally higher on Tuesday, interesting headlines rose more than 15%, Jingdong rose more than 10%, new energy auto stocks rose sharply.

Other Chinese stocks, Jingdong, Palm Education rose more than 10%, Shell rose more than 8%, New Oriental rose more than 7%, Tucson Future rose nearly 7%, microblogging, Alibaba, NetEase, rose more than 3%, Baidu rose nearly 3%, Beili Beili, AutoZone, Good Future, Leju rose more than 2%.

New energy car stocks, ideal car rose more than 8%, Xiaopeng car rose more than 7%, Weilai car rose nearly 4%.

  1. European stocks closed higher across the board

France’s CAC40 index rose 0.95%, the U.K. FTSE 100 index rose 0.62%, Spain’s IBEX35 index rose 0.58%, Italy’s FTSE MIB index rose 0.63%, the European Stoxx 50 index rose 0.98%.

  1. Tuesday U.S. oil closed 3.8% higher, the highest closing price in two months

Edward Moya, senior market analyst at OANDA, said the outlook for global crude demand “still looks positive as most major economies are getting closer to the other side of the Omicron variant poisonous strain fence.”

He said that if inventories continue to fall, U.S. crude oil climate prices will “surge to last year’s highs.

West Texas Intermediate (WTI) crude oil futures for February delivery rose $2.99, or 3.8 percent, to close at $81.22 a barrel, the highest close since Nov. 11, on the New York Mercantile Exchange.

  1. Gold futures closed 1.1% higher on Tuesday, hitting a near one-week high

Powell said at his re-election hearing that the central bank’s plan to raise interest rates should not impact the economy or hurt the job market. Powell was essentially painting a vision of a “soft landing” for the economy, not a recession.

Gold Newsletter editor Brien Lundin said, “While all markets are alarmed by the Fed’s shift to more hawkish rhetoric, I think Powell’s testimony reassures people that the Fed will not act too aggressively and will keep the economy healthy as a top priority.”

Gold futures for February delivery rose $19.70, or 1.1 percent, to close at $1,818.50 an ounce on the New York Mercantile Exchange. Based on the most active contracts, gold futures hit their highest settlement price since Jan. 5 on Tuesday. So far gold futures recorded a third consecutive trading day of gains.

  1. Emerging markets outside of China saw a “sharp brake” on investment flows

Foreign investors pulled $9.6 billion from bonds in developing countries outside China last December, the largest outflow since the first round of the epidemic hit the market in March 2020, according to data from the International Finance Association.

“We are seeing a de facto sharp brake in non-Chinese emerging markets,” economist Jonathan Fortun wrote in Tuesday’s report. “The latest omicron variant strain, accelerated Fed tapering and a stronger dollar all pose additional risks to an already strained outlook for emerging market flows.”

Fortun said the situation is very different between China and other emerging markets, as investors are betting that the world’s second-largest economy will rebound faster than other regions.

International Macro

  1. Powell: If further rate hikes are needed to cool inflation, the Fed will do so

Powell said high inflation is a serious threat to hinder full employment, and inflationary pressures could continue into the middle of next year. If inflation lasts longer, which means more entrenched risks, the Fed’s policy will respond.

Earlier, Powell said in a speech prepared for Tuesday’s nomination confirmation hearing that the Fed is firmly committed to the goal of maximizing employment and price stability and will use tools to support the economy and a strong labor market, and prevent higher inflation from becoming entrenched.

  1. The Fed’s senior officials again hawkish voice: another this year’s ticket committee to support a rate hike in March

On Tuesday, January 11 EST, a total of three senior Fed officials who have the right to vote at this year’s Fed monetary policy meeting FOMC spoke. The Cleveland Fed President Mester (Loretta Mester), who was the first to speak, said that in response to a tight supply labor market and continued high and more general high inflation, the Fed may need to raise interest rates at least three times this year and begin to shrink the table. She said.

Meister said that the final monetary policy decision will depend on the economic situation, as well as how the new crown epidemic changes, but noted that in order to address inflation “well above” the Fed’s target level, Fed officials may now need to recalibrate policy. Given that inflation is “well above where we need to be” and the labor market is tight, “the Fed is indeed likely to remove some of the accommodation.”

  1. The World Bank cut global growth forecast for 2022, the epidemic and weakening financial support are the reasons

Global GDP is likely to grow 4.1 percent this year, down from the 4.3 percent forecast back in June, the Washington-based World Bank said Tuesday in its semiannual Global Economic Prospects report.

“A serious slowdown is happening,” Ayhan Kose, chief economist at the institution’s Prospects Group, said in an interview. The global economy is “essentially on two different flight lines: advanced economies are flying high; emerging markets and developing economies are somewhat depressed and lagging behind.”

The global outlook is overshadowed by what World Bank President David Malpass called “exceptional uncertainty. Downside risks include a resurgence of the Covid-19 outbreak, the possibility of runaway inflation expectations and financial pressures amid record debt levels, the bank said. These risks increase the likelihood of a hard economic landing in emerging markets with limited room for supportive policies, the agency said.

  1. legislation to prohibit members of Congress from speculating in stocks? Stock God Pelosi is in danger!

U.S. House Minority Leader Kevin McCarthy said that if the Republican Party wins the majority of seats in the House of Representatives in the midterm elections in November, and he himself will consider banning members of Congress from holding or trading stocks if he becomes Speaker of the House.

As it stands now, the poor response to the new crown epidemic, high inflation rate, supply chain crisis and other issues have led to Biden’s disapproval rate constantly refreshing highs, and the market generally believes that the Democrats will lose control of Congress in the midterm elections.

  1. U.S. small business optimism rose, but inflation and lack of qualified labor to become the biggest challenge

“Inflation is at its highest level since the 1980s, with an overwhelming impact on business owners’ ability to manage their businesses,” NFIB chief economist Bill Dunkelberg said in a statement.

Fifty-seven percent of companies said there were few or no qualified applicants for job openings, down from a record 62 percent in September but well above the average of 41.7 percent since 1993.

  1. WHO warns: Omicron could infect more than half of Europeans in a few weeks

At the current rate of transmission, more than half of Europe’s population could be infected with omicron within weeks, said Hans Kluge, regional director for Europe at the World Health Organization.

“This fast-spreading variant of the virus is sweeping across the region like a tidal wave from west to east, and most Europeans could be infected with the disease within the next six to eight weeks,” Kluge said at a briefing Tuesday, commenting on forecast data from the Center for Health Metrics Evaluation and Research.

  1. Brazil’s 2021 inflation rate hits 6-year high

Brazil’s inflation rate in 2021 will be 10.06 percent, a new high since 2015, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) on 11.

The data show that the level of inflation in Brazil in 2021 is much higher than the 4.52% in 2020. Rising fuel, energy and food prices are the main cause of high inflation in Brazil.

  1. JPMorgan Chase U.S. Treasury clients net short ratio reached the highest since December 2017

JPMorgan Chase U.S. Treasury clients’ short ratio improved by 5 percentage points to reach the highest since June 2021, with the net short ratio reaching the highest since December 2017. The proportion of active client shorts increased by 16 percentage points.

Company News

  1. 2021 Tesla Shanghai Super Factory to deliver more than 480,000 units, accounting for most of the global deliveries

In 2021, Tesla’s Shanghai Super Factory delivered a total of 484,130 vehicles, up 235% year-on-year, with more than 160,000 units delivered to overseas markets, meeting demand in more than 10 countries in Europe and Asia. It is worth mentioning that Tesla’s global deliveries in 2021 will be 936,000 vehicles, with the Shanghai Superfactory accounting for 51.7%, accounting for a large part of Tesla’s global deliveries.

Tesla said that thanks to the highly intelligent, digital and up to 86% parts localization rate, Shanghai Super Factory capacity in 2021 to achieve further improvement, the third quarter of 2021, Shanghai Super Factory Model 3, Model Y quarterly production also exceeded the Fremont, California factory for the first time.

  1. Pfizer Vaccine Partner BioNTech: Revenue from New Crown Vaccine May Decrease This Year

BioNTech said revenue from the new crown vaccine it developed with Pfizer Inc. this year may be lower than last year, with sales expected to be between 13 billion euros and 17 billion euros ($14.7 billion to $19.3 billion), after totaling 16 billion euros to 17 billion euros last year. BioNTech has pledged to use the proceeds to develop cancer drugs and new vaccines.

Pfizer forecast vaccine sales of $31 billion this year last December, based on contracts for 1.9 billion doses signed as of mid-November. Europe and the U.S. are urging people to get booster shots due to a new wave of infections caused by the highly contagious Omicron variant, although it remains unclear how many countries will get a new round of vaccinations later this year.

  1. Facebook asks to dismiss FTC lawsuit, court disagrees

Facebook asked to dismiss an antitrust lawsuit brought by the FTC against the company, but a judge denied Facebook’s request, finding that the FTC’s suit was justified.

The FTC argued that the court should require Facebook to sell Instagram and WhatsApp, while Facebook asked Judge James Boasberg of the federal court in Washington, DC, to dismiss the lawsuit.

According to Boasberg, “Whether the FTC will ultimately be able to give proof and win on summary judgment and at trial is something that everyone is speculating about. The court will not engage in such speculation; we simply believe that at this stage of the motion to strike, the FTC’s allegations are deemed true and its claims are reasonable.”

  1. Pig heart transplant human surgery worldwide alarmed by the emergence of a low-key Swedish medical technology company

Shares of a little-known Swedish medical technology company jumped 15 percent on Tuesday on news that the company, Xvivo Perfusion AB (hereinafter “Xvivo”), was involved in the pig heart transplant.

Xvivo’s CEO Dag Andersson told Bloomberg by phone that the breakthrough “allograft” procedure did rely on Xvivo’s technology, “I never thought it would happen so quickly, and the technology involved has exceeded everyone’s expectations. “

  1. ExxonMobil agreed to buy 49.9% stake in Norwegian biofuel producer Biojet

ExxonMobil said Biojet plans to convert forestry and wood construction waste into low-emission biofuels and biofuel components, and plans to build a plant in Follum, Norway, in 2025 to begin commercial production.

In addition, Biojet plans to develop up to five production facilities, and based on the potential capacity of these five facilities, ExxonMobil could purchase up to 3 million barrels of biofuel products annually.

  1. Boeing 2021 aircraft deliveries soar, but still lag behind rival Airbus

Boeing said Tuesday it delivered 340 passenger planes to airline companies and other buyers in 2021, up from 157 in 2020. Aircraft deliveries have been led by the 737 Max model, which global regulators have grounded for nearly two years after fatal crashes in 2018 and 2019.

Boeing shares rose after the data was released, up more than 3 percent at press time.

Submitted January 12, 2022 at 09:21AM by lilyxu185
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