Premarket market trends
1. On June 28 (Tuesday)U.S. stocksbefore the market, the three major U.S. stock index futures all rose. As of press time, the Dow futures rose 0.43%, the S&P 500 futures rose 0.36%, and the Nasdaq futures rose 0.21%.
2. As of press time, Germany's DAX index rose 0.74%, Britain's FTSE 100 index rose 1.23%, France's CAC40 index rose 1.15%, and Europe's Stoxx 50 index rose 0.73%.
3. As of press time, WTI crude oil rose 1.29% to $110.98 per barrel. Brent crude oil rose 1.62% to $112.78 a barrel.
Market News
Federal ReserveWilliams: Federal Funds Rate of 3.5%-4% is reasonable. Fed official Williams delivered a speech on US economic prospects at 20:00 GMT. Williams said it is reasonable for the federal funds rate to reach 3.5%-4%, and the federal funds rate to reach 3.5%-4%.
G7 will increase sanctions and plan to set price caps on Russian oil and natural gas. G7 leaders will instruct ministers to explore price caps on Russia's oil and gas exports to limit Russia's ability to fund a war between Russia and Ukraine, a G7 official said on Tuesday. The mandate is expected to be announced at the conclusion of the summit. The International Energy Agency said in a June report that although sanctions on Russia reduced Russian oil exports, its oil export revenue rose in May. In addition, Italy, which depends on Russian energy, wants to extend the price limit to natural gas. France said that the price-limiting mechanism should not be limited to Russia's oil and natural gas, and that G7 countries should also adopt price-limiting measures when purchasing energy from other countries.
White House : A number of companies intend to invest more than 700 million US dollars to increase the production capacity of electric vehicle charging piles in the United States. The White House of the United States said on Tuesday that several companies plan to invest more than 700 million US dollars to increase the production capacity of electric vehicle charging piles in the United States. The measure will add at least 2,000 jobs and make charging cheaper and easier. The investments include $450 million for Electrify America, a unit of Volkswagen (VWAGY.US ), and $250 million for Siemens (SIEGY.US ) to expand its Texas operations, according to the White House. Electric vehicle charging station plants in Grande Prairie and Ponoma, California. In addition, FLO, the electric vehicle charging network operator, will also invest $3 million in Auburn Hills, Michigan, to establish its first assembly plant in the United States. The investments will help boost U.S. EV charging capacity to more than 250,000 a year, the White House said, without giving a figure for current capacity.
The ECB will start its bond buying program on Friday. The European Central Bank will launch a bond-buying program on Friday as its first line of defense against a possible debt market crisis, European Central Bank President Lagarde said on Tuesday (June 28). The European Central Bank is raising interest rates from record lows in an effort to curb unprecedented inflation. At the same time, the bank is considering how to use "flexibility" in the reinvestment allocation of the 1.7 trillion euro large-scale bond purchase portfolio in order to curb the unprovoked volatility of bonds between different governments in the euro zone . Net buying in another asset-buying program is also due to end on Friday, potentially exposing some highly indebted euro zone countries to speculative attacks from investors. Earlier, Lagarde also said that if inflation continued to rise and if necessary, the European Central Bank was ready to raise interest rates at a faster rate , while downplaying concerns about a recession in the euro zone.
Goldman Sachs : U.S. interest rate market underestimates recession risk, betting on Fed policy to "turn dovish". It has fallen to a level with "limited downside" in early 2023, but the market is optimistic about the 2024 federalFunds rate pricing may be underestimating recession risk. Additionally, Goldman Sachs has joined a recent frenzy of betting that the Fed will turn dovish. To profit from mispricing, Goldman Sachs strategists recommend doing March 2023 and March 2024 contracts on Eurodollar curve flattening. They also suggest that instead of buying the March 2024 strike call, selling the March 2023 strike Eurodollar call could take advantage of the current high implied volatility .
World Bank Chief Economist warns: global interest rate hikes exacerbate emerging market debt crisis . World Bank Chief Economist Reinhardt warned on Tuesday that as global interest rates rise, the number of emerging market countries facing debt crises is rapidly increasing. "For low-income countries, debt risks and debt crises are not hypotheticals," Reinhart said, adding that the debt crisis needed to be resolved by actually reducing debt. Earlier, Goldman Sachs issued a similar warning, saying that emerging markets are entering a new round of default cycle, and Sri Lanka may be the first developing country to default. Jay Newman, former investment manager of Elliott Management Corp., a well-known American hedge fund company, recently said that emerging markets are facing the most serious crisis since more than 20 developing countries defaulted on their debts in the early 1980s.
individual stocks news
Nike (NKE.US) Q4 revenue and net profit both declined. Nike's financial report released after the U.S. stock market on Monday showed that Q4 Nike's revenue was US$12.2 billion, a year-on-year decrease of 1%, slightly higher than market expectations of US$12.13 billion; net profit was US$1.44 billion, a year-on-year decrease of 5%; 45%, a year-on-year decrease of 0.8%. Among them, Nike's total sales in Greater China fell by 19%. Notably, Nike also announced that its board of directors has authorized a new four-year, $18 billion program to repurchase Nike Class B common stock.
Ctrip's (TCOM.US) Q1 net revenue of 4.1 billion yuan was better than market expectations, and remained stable year-on-year. Ctrip Group Q1 net operating income was 4.1 billion yuan, which remained stable year-on-year; the net loss attributable to Ctrip Group shareholders was 989 million yuan, compared with the net profit attributable to Ctrip Group shareholders in the same period in 2021 was 1.8 billion yuan. The financial report shows that local tourism continues to be the main driving force for the recovery of domestic tourism, and Q1 local hotel bookings increased by more than 20% year-on-year. Air ticket bookings on the international platform in Q1 increased by more than 270% year-on-year, mainly due to the recovery of the European and Asia-Pacific markets. Hotel bookings on international platforms in Q1 also exceeded pre-pandemic levels.
Buffett spent another 44 million US dollars increasing his holdings of Occidental Petroleum (OXY.US)! ’s shareholding has reached 16.4%. Buffett’s Berkshire Hathaway (BRK.A.US) bought 794,000 common shares of Occidental Petroleum on June 23, at a price of $55.39-56.09 per share, for a total of $4,400 million, and the shareholding ratio increased to 16.4%. At present, Berkshire Hathaway holds a total of 153.5 million shares of Occidental Petroleum. Based on the stock’s closing price of $58.90 on Monday, the value of its holdings is about $9 billion. Prior to June 17-22, Berkshire Hathaway had purchased 9.55 million shares of Occidental Petroleum stock , with a purchase price between US$54.96 and US$56.42 per share, for a total amount of approximately US$530 million.
Robinhood (HOOD.US) fell nearly 4% before the market, and FTX CEO denied the acquisition rumors. FTX, one of the world's largest cryptocurrency exchanges, is considering acquiring the online brokerage. Stimulated by the news, the stock price of Robinhood soared 14% as of yesterday's close. However, FTX CEO Sam Bankman-Fried denied the report late on Monday local time, Sam Bankman-Fried said: "We are excited about Robinhood's business prospects and the potential cooperation with us.Always impressed with the business that Vlad and his team have built. "Having said that, we have no active M&A conversations with Robinhood. According to reports, FTX is discussing the acquisition plan internally, but has not issued an acquisition offer to Robinhood. As of press time, Robinhood fell 3.62% before the market.
Spirit Aviation (SAVE.US) shareholders opposed the Frontier (ULCC.US) offer. in Frontier Spirit shareholder TIG Advisors said it planned to vote against its offer after a series of improved offers. New York-based asset manager TIG Advisors said it preferred to JetBlue's offer. The company said it believes JetBlue's offer is "substantially superior" and "maximizes value by eliminating execution risk." TIG owns about 2 million shares of Spirit Airlines. Previously, Spirit Airlines , Shareholders are about to vote on the company's merger plan with Frontier Group Holdings, on June 30, JetBlue Airways, once again increased the acquisition offer for Spirit Airlines.
The largest US stock IPO since May! Ivanhoe Electric (IE.US) raised $169 million and landed on NYSE today. Mineral exploration and development company Ivanhoe Electric (IE.US), which will list on Tuesday, set its IPO price below the $11.75-$12.50 range , raised US$169 million at a price of US$11.75 per share. Calculated at the IPO price, the company’s market value is US$1.1 billion, which will be the largest new stock in the US stock market since May. It is reported that for the US stock IPO market, the first half of this year In the worst half-year since the financial crisis in 2009, only $4.9 billion was raised, compared with nearly $102 billion in the first six months of 2021. Shares of Ivanhoe Electric will trade on the New York Stock Exchange on and on Tuesday. Toronto Stock Exchange trading, trading code is IE.
Important economic data and event forecast
Beijing time 22:00: US June Conference Board consumer confidence index.
Beijing time 22:30: US as of June 17th Weekly EIA crude oil inventory changes (10,000 barrels), U.S. EIA weekly crude oil imports (10,000 barrels) for the week ending June 17.
Beijing time 04:30 the next day: API crude oil inventory changes for the week ending June 24 in the United States (10,000 barrels).
To be determined: The NATO summit will be held for two days, and the discussions are expected to focus on the Ukraine issue.
The next day at 00:30 Beijing time: 2024 FOMC voting committee and San Francisco Fed Chairman Daly delivered a speech.
