After last week’s sharp decline, the US stock market continued to fluctuate under the background of a new round of negotiations between Russia and Ukraine. The three major futures indexes in the first session plunged after rising by 1%, and are now in a state of rising and falling.
Mislav matejka, a strategic analyst at JPMorgan Chase, interpreted that the recent trend of a series of commodity prices is relatively extreme. If it lasts for a long time, it will cause huge losses to the economy. However, we still believe that falling into recession is not the benchmark outcome, nor do we believe that the stock market will continue to decline from the current level.
It is worth mentioning that there was a significant adjustment in the international oil price before today’s trading. The oil prices of the United States and Burundi both fell by more than 5%, which also led to the decline of Chevron and other energy stocks. In anticipation of the Fed’s interest rate hike in the middle of the week, the benchmark 10-year Treasury yield also hit 2.1% today, while the five-year Treasury yield returned to 2% after three years.
Interestingly, Goldman Sachs, another Wall Street investment bank, once again lowered its target for the 2022 S & P 500 index to 4700 last week. The bank had just lowered its forecast from 5100 to 4900 in February. Although this target is still 10% higher than the current price, it also means that the index will record negative returns for the whole year of this year.
For Chinese investors, after the historic fall of the Hang Seng technology index on Monday, the trend of stocks in the US stock market has attracted more and more attention. As of press time, Alibaba fell 4.75% in front of the market, and the declines of Baidu, pinduoduo and station B were not double, slightly better than the performance of the previous two trading days.
market dynamics
As of 20:23 Beijing time, Dow Index Futures (March 2002 contract) rose 0.55%, and S & P 500 index futures rose 0.28%; Nasdaq 100 index futures fell 0.28%.
On the previous trading day, disturbed by the news about the conflict between Russia and Ukraine, the three major stock indexes of the United States passed another trading day of collective decline. At the same time, the NASDAQ China Jinlong index closed down 10.18%, continuing the largest one-day decline since October 2008. As of the close, the S & P 500 index fell 1.30% to 420431; The NASDAQ index fell 2.18% to 1284381; The Dow Jones index fell 0.69% to 3294419.
The European market in trading rose as a whole, but market sentiment was still in a state of violent fluctuations following the news.
(European market trend on Monday, source: Investing)
company information
[musk laments that Tesla and SpaceX are “facing huge inflationary pressure”]
Elon Musk, CEO of Tesla, asked about the prospect of inflation rate on twitter on Sunday, US Eastern time, and said that Tesla and SpaceX had felt great pressure on raw materials and logistics. Then he forwarded an article on the conflict between Russia and Ukraine, which had pushed commodity prices to the highest level since 2008, and said his company was “not alone”.
Under inflationary pressure, Tesla raised the price of its American model y and model 3 long-range models by $1000 last week, and the price of some domestic model 3 and model y models by 10000 yuan.
[Ford and Volkswagen deepen cooperation in the field of electric vehicles]
Ford and Volkswagen announced on Monday to further deepen cooperation in the field of electric vehicles. American automakers will launch a second electric vehicle based on Volkswagen MEB platform, and double the output plan of the six-year cooperation framework to 1.2 million vehicles. According to the previous cooperation plan, the two companies will jointly launch a MEB platform cross-border station wagon, which will be put into operation at Ford Cologne plant in 2023.
[Rio Tinto proposes to acquire Turquoise mountain resources with us $2.7 billion]
Rio Tinto announced on Monday that it plans to acquire a 49% stake in turquoise rock resources at a price of C $34 ($26.6) per share. The company originally held a 51% stake in the company. After the completion of the transaction, the company also increased the ownership of oyu Tolgoi mine to 66%, further simplifying the communication process with the Mongolian government. As of press time, lvsongshishan resources rose 30% and Rio Tinto fell 2.59%.
[Softbank sells $1 billion worth of shares of South Korean e-commerce giant coupang]
According to the documents submitted by Softbank group to the SEC on Friday, the company sold nearly 50 million coupang shares for $20.87, and the Japanese venture capital giant still holds 461 million company shares. Kirk boodry, a research analyst at REDEX, said that although the share price of coupang is significantly lower than the issue price, the investment cost of Softbank is probably less than $5 a share, so this operation is a profit taking behavior.
[FDA requests AstraZeneca to supplement sinusitis drug application data]
AstraZeneca announced on Monday that the US FDA has not approved its expansion of the asthma drug fasenra in the treatment of chronic sinusitis with nasal polyps, and requested it to supplement clinical data in its reply. As a monoclonal antibody drug, fasenra is mainly used to treat severe asthma, with a total revenue of $1.26 billion last year.
[Apple supplier Foxconn Shenzhen parks will be suspended from now on]
Foxconn‘s parks in Shenzhen (Longhua, Guanlan, etc.) will be suspended from now on because they cooperate with the local government’s covid-19 epidemic prevention work, and the actual resumption time will be notified by the local government, the financial Associated Press reported today. In addition, according to China Securities News, Foxconn‘s Zhengzhou and Chengdu parks are currently in normal operation. It is expected that the suspension of operation in Shenzhen Park will have a limited impact on Foxconn’s overall business.
events worthy of attention during US equities (Beijing time)
March 14
22:00 euro zone finance ministers’ meeting
March 15
05:00 South Korea February import and export price index
