On April 18, local time, U.S. stocks closed mixed on Thursday, with the S&P 500 and Nasdaq closing down for the fifth consecutive trading day.
Most of the popular Chinese concept stocks closed higher on Thursday, with the Nasdaq China Golden Dragon Index (HXC) closing 0.99% higher.
JPMorgan Chase & Co. President Daniel Pinto said the Fed may not cut interest rates at all this year given persistently high inflation. The International Monetary Fund (IMF) is urging Asian central banks to keep an eye on domestic inflation and avoid tying their policy decisions too closely to the Fed's expected moves.
The World Bank Group has unveiled a new goal to help countries provide affordable health care to 1.5 billion people by 2030, including expanding access to remote areas, cutting health care costs and other financial barriers, and focusing on lifelong care.
TSMC lowered its forecast for chip market expansion, warning that the smartphone and PC market remains weak.
Most of the popular Chinese concept stocks closed higher
Most of the popular Chinese concept stocks closed higher on Thursday, with the Nasdaq China Golden Dragon Index (HXC) closing 0.99% higher.
Among them, Kandi Automobile Industry rose 9.58%, Gaotu Group rose 8.69%, Weibo rose 3.73%, Zhongtong Express rose 3.63%, NetEase rose 2.85%, New Oriental rose 2.74%, and Tencent Music rose 2.66%.
On April 18, local time, U.S. stocks closed mixed on Thursday, with the S&P 500 and Nasdaq closing down for the fifth consecutive trading day. Among them, the Dow rose 0.07%, the Nasdaq fell 0.52%, and the S&P 500 fell 0.22%.
The Fed is more likely not to cut interest rates this year
On April 18, local time, Daniel Pinto, president of JPMorgan Chase, said that given the high level of inflation, the Federal Reserve may not cut interest rates at all this year.
Speaking at an event in Washington, Pinto said that "the Fed may have to wait a little longer before cutting rates, but the likelihood of a rate hike is very, very low." He doesn't think the Fed will rush into action now, as cutting rates too early would have painful results that could lead to a recession.
Recent economic data showed that U.S. inflation remains higher than many expected earlier this year, making a quick rate cut by the Federal Reserve less likely.
Pinto's view is in line with JPMorgan CEO Jamie Dimon, who wrote in a letter to shareholders earlier this month that stubborn inflationary pressures could lead to higher interest rates than the market expects, and JPMorgan is prepared for 2%-8% or even higher.
Earlier on Thursday, New York Federal Reserve Bank President John Williams said there was no rush to lower interest rates and that economic data would determine the timing.
"Monetary policy is in a good position. He said at the Semafor World Economic Summit in Washington on Thursday. "The current level of interest rates is gradually pushing us to meet our goals, so I don't feel the urgency of cutting rates at all. I think monetary policy is doing exactly what we want to see. ”
The market's implied expectations for a Fed rate cut fell further this week as Fed Chair Jerome Powell hinted that policymakers would wait longer than previously expected.
Powell noted that there has been insufficient progress on inflation and said that the Fed could keep interest rates stable "for as long as necessary" if price pressures persist.
Williams also said on Thursday that a rate hike is not his baseline expectation, but that a rate hike is still possible if economic data supports such an approach to meet the Fed's inflation target.
The IMF cautioned Asian central banks not to follow the Fed too much
On April 18, local time, the International Monetary Fund (IMF) urged Asian central banks to pay attention to domestic inflation and avoid tying their policy decisions too closely with the Fed's expected moves.
Recently, waning expectations of a near-term Fed rate cut have pushed the dollar steadily stronger and pushed down some Asian currencies such as the yen and the South Korean won.
Krishna Srinivasan, the IMF's head for Asia and the Pacific, said Thursday that IMF staff analyses showed that U.S. interest rates had a "strong and direct" impact on financial conditions and exchange rates in Asia.
"Expectations for Fed easing have fluctuated in recent months, driven by factors unrelated to the need for price stability in Asia. He said in a briefing on the prospects for the region.
"We advise Asian central banks to focus on domestic inflation and avoid relying too heavily on the Fed's expected actions to make policy decisions," he said. ”
TSMC lowered the outlook for the chip market
On April 18, TSMC lowered its forecast for chip market expansion, warning that the smartphone and PC markets remain weak.
The world's largest advanced chipmaker lowered its forecast for semiconductor market growth (excluding memory chips) to around 10% in 2024. CEO Wei Zhejia also lowered his growth forecast for TSMC's leading foundry industry. At the same time, the company has maintained its spending estimate for capacity expansion and upgrades this year at between $28 billion and $32 billion.
"Macroeconomic and geopolitical uncertainties remain, which could impact consumer confidence and end-market demand. Wei Zhejia said on the conference call. TSMC's depositary receipts in the U.S. fell as much as 6.3%, the biggest intraday decline in more than a year.
This prospect masks the strong growth in projected revenue, which once again confirms the growth that TSMC and other chipmakers are seeing from all AI needs. The new predictions also highlight the difference in the fates of chipmakers for consumer products and those of the most advanced chipmakers with artificial intelligence.
As other chip giants prepare to release earnings reports, TSMC's predictions could be a harbinger of the future. ASML Holding NV, a global supplier of advanced chip-making machines, reported a 22% drop in orders in the first quarter on Wednesday, and other companies, including Intel Corp., will release reports next week.
TSMC expects revenue to grow by at least 20% this year as the broader semiconductor market recovers, despite global macroeconomic volatility.
"The demand is very high and we will do our best to increase production capacity to alleviate the shortage. When talking about the demand for artificial intelligence, Wei Zhejia said, "This year may not be enough, but next year we will work very hard." ”
Reviewer: Wang Chao Editor: Zhang Nan Ya Wenhui Proofreader: Zhang Jing Signed: Sun Hong