Big City Review:
Overnight, U.S. stocks rose more than 2 percent collectively, energy and consumer discretionary led, technology and China were eye-catching, the Nasdaq Golden Dragon China Index rose nearly 5%, Tesla rose more than 12% intraday to drive many new energy vehicle stocks to double-digit jumps, And European stocks rose more than 1% in the intraday and narrowed the gains in the end of the session.
After the Fed sharply cut interest rates and shrunk the balance sheet, the market confidence is weak, the good side is that the Fed is on the July interest rate hike 75BP to do the expected management, if the inflation in the later period is not particularly beyond the surprise, the interest rate hike path will gradually become clear, with the market consensus, there is an opportunity to stabilize and rebound. It focuses on core U.S. stocks, Chinese stocks, and ETFs (MCHI.US) that track Chinese technology. It should be noted that in the past month, Chinese stocks have been significantly stronger than US stocks, becoming a safe haven in the decline. Pay attention to the rhythm in operation, and those who have the ability can do some short-term games.
Stock News:
1. K.US announced that it will split into three listed companies. Before U.S. stock marketing on Tuesday, global food manufacturing giant Kellogg announced that the company would split into three separate listed companies, and the snack, grain and plant-based businesses would be independent. The company expects the split to be completed by the end of 2023. Affected by the news, Kellogg rose more than 5% intraday on Tuesday and finally closed up 1.98%.
2. Musk responds to Tesla's (TSLA.US) layoffs. In response to previous media reports on "Tesla layoffs of 10%", Musk also replied on Tuesday, saying that in order to cope with the current economic situation in the United States, Tesla will lay off about 10% of its regular employees and hire more hourly workers. Overall, the impact of the layoffs on the company's overall workforce was about 3.5 percent. Over the past weekend, two former Tesla employees filed lawsuits arguing that the company was involved in "mass layoffs" and violated federal labor laws.
3.MetaPlatforms(META. US) settled the "Ad Algorithm Discrimination" case with the U.S. Department of Justice. The U.S. Department of Justice said on Tuesday that Meta's platform uses algorithms to push real estate advertisements to users, but the algorithm itself is based on the user's race, skin color, religion, gender, country of birth and other information, which violates the Fair Housing Act (FHA) and constitutes discrimination against users of social media platforms. As part of the settlement, Meta will not only pay a top fine, but the new system developed in the future will also need to be approved by the U.S. Department of Justice and supervised by the court. After Tuesday's opening, Meta initially rose more than 2% and then turned lower, falling more than 4% by the close, refreshing a new low since April 2020.
4. U.S. oil giant Chevron (CVX.US) shouted Biden. On Tuesday, local time, MICHAEL Wirth, CEO of US oil giant Chevron, wrote publicly to Biden saying that to a large extent, the White House tried to criticize, and sometimes even denigrate, the crude oil industry, and these moves did not help to meet the challenges faced. Wirth said lowering fuel prices will require a change in the way the White House does things, and there needs to be an honest dialogue between the government and oil companies. In response to Wirth's shouting, Biden also responded on Tuesday that he was "too sensitive."
Hot News:
1. New research from the San Francisco Fed: Tight supply is the culprit behind the spike in inflation in the United States. According to the latest research by the San Francisco Fed, about half of the reasons for the surge in INFLATION in the United States are due to the tight supply problems that have intensified the Russian-Ukrainian conflict this year, and a third can be attributed to rising demand. "These results suggest that factors other than demand account for about two-thirds of the reasons for the recent rise in inflation, highlighting some of the risks facing the economy," San Francisco Fed economist Adam Hale Shapiro wrote in a letter released Tuesday. ”
2. Fed Barkin supports a 50 or 75 basis point rate hike in July, but cautions not to rush it. Richmond Fed Bank President Barkin said Tuesday that Fed Chairman Jerome Powell's most likely guidance on the possibility of a 50 or 75 basis point rate hike in July was "reasonable," but cautioned that the Fed could not rush to avoid hurting the economy. Barkin reiterated that the Fed would have to adopt restrictive monetary policy, but he said data and judgments would guide the Fed's response to "high, widespread, and sustained" inflation. He said the Fed has made it clear that it will firmly pull down high inflation, even if doing so raises the risk of a recession. He predicts that the U.S. economy will not quickly return to the stable growth, employment and inflation of the past 10 years.
3. U.S. home sales fell to a two-year low in May; The median home price exceeded $400,000 for the first time. U.S. existing home sales fell 3.4 percent to a seasonally adjusted rate of 5.41 million units, the lowest level since June 2020, as home prices jumped to record highs, breaking the $400,000 mark for the first time and mortgage rates rising further, squeezing first-time homebuyers out of the market. In addition, the Chicago Fed's May national activity index fell to 0.01 from 0.40 in April, which the report said "indicates a slowdown in economic growth in May." ”
4. If Russia completely runs out of gas, Germany will fall into recession, and many European countries will launch a gas crisis plan. The German BDI Industry Association cut its 2022 economic growth forecast to 1.5 percent, compared to a pre-war forecast of 3.5 percent. The agency warned that Germany would certainly face a recession if The supply of Russian gas, which had fallen sharply, was completely interrupted. As part of Germany's contingency plan, the gas regulator, the Federal Network Agency, unveiled details of a new auction system that will begin in the coming weeks, aimed at encouraging manufacturers to reduce gas consumption. Together with countries such as Germany, Denmark, Austria and the Netherlands, Italy has launched the first phase of a three-phase plan to deal with the gas supply crisis – the early warning phase. Italy said it would consider providing financial support to help companies replenish gas inventories to avoid a more serious crisis in the winter.
Russia surpassed Saudi Arabia as China's largest supplier of crude oil, with imports up 55% year-on-year in May. In May, China imported about 45.82 million tons of crude oil, of which 8.42 million tons were imported from Russia, an increase of 29% compared with 6.55 million tons in the previous month and a 55% increase from 5.44 million tons in the same period last year. Among the top suppliers, Russian crude has the lowest unit cost.
Author: AIDE Securities Futures Research Department
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