16 Nov 2022

Last night, the three major U.S. stock indexes fluctuated and closed up. As of the close, the Dow rose 0.17%, the Nasdaq rose 1.45%, and the S&P rose 0.87%. The yield on the 10-year U.S. Treasury bond fell 2.359% to close at 3.766%, which is about -57 basis points compared to the yield on the two-year Treasury bond. The panic index VIX rose 3.41%. Brent crude oil closed up 1.28%. Spot gold closed up 0.41% at $1,778.69 an ounce. The U.S. dollar index remained high, closing at 106.55.

Russia launched missile strikes on several areas including Kiev, Ukraine. Two buildings in the center of Kyiv were damaged, and at least half of the area lost power, and parts of Lviv were cut off. According to the Deputy Director of the Ukrainian President's Office: After Russian missiles attacked energy infrastructure, the energy situation in Ukraine is "critical". The Kremlin said Russia would continue its military operations in Ukraine. The Polish president convened a meeting of the National Security Council on Wednesday following the bombings in Poland, and the NATO council is due to meet on Wednesday.

Wholesale prices rose unexpectedly less than expected in October, adding to hopes that inflation is easing. The PPI rose 8% year-on-year, and rose 8.4% in September from a year earlier, down from an all-time high of 11.7% set in March. The month's gain was unchanged from September's 0.2 percent gain. An important factor contributing to the moderation in inflation was a 0.1 percent decline in the services component of the index. This is the first time that the PPI indicator has dropped significantly since November 2020. That's more good news for traders betting on peaking inflation and will provide some ammunition for trades betting on the Fed's turn. The dollar weakened further after the data.

Fed Harker expects the Fed to remain at a certain (interest rate) level next year and sees a slower pace of rate hikes in the coming months. Pause (rate hikes) can be taken as long as efforts have been made to bring inflation down. The Federal Reserve Barr said that it is closely monitoring liquidity and interest rate risks. At present, the United States is not in recession and will see a sharp slowdown in the economy and an increase in the unemployment rate. The Fed's policy actions have the potential to trigger a recession, but that's better than entrenched high inflation, which is expected to require more rate hikes, Fed Bostic said.

According to market news: the European Central Bank reached a 344.7 billion euro corporate bond purchase plan, while completing the 23.8 billion euro asset-backed securities (ABS) purchase, and said that bank loans decreased by 1.55 billion to 2.12 billion euros. The Bank of England allocated £45m for the six-month indexed long-term repurchase facility (ILTR). U.S. five-year Treasury Inflation-Protected Securities (TIPS) break-even inflation fell to 2.38%, the lowest since Oct. 13.

According to the German pipeline network agency: As of November 15, the natural gas storage level in Germany is 100%. According to the IEA monthly report: the global oil production growth forecast for 2022 remains unchanged at 4.6 million barrels per day, and it is expected that global oil production will increase by 740,000 barrels per day in 2023.

Apple rose 1.19%. Relying on the Apple Watch, Apple may launch health insurance services in 2024.

Microsoft rose 0.17%. It met with the CEOs of South Korea's second largest company SK Group and game giant NCSoft to discuss future cooperation; launch a supply chain platform to maximize investment in supply chain data assets.

Google rose 2.8%, rumored that Google agreed to pay $391.5 million in settlements to end the privacy allegations.

Amazon rose 0.46%, and will launch Amazon Clinic (Amazon Clinic), which provides convenient and affordable virtual medical services for common diseases.

Tesla rose 1.82%. Tesla China adjusted the product delivery cycle, shortening it from a maximum of 4-8 weeks to 1-5 weeks; Musk's SpaceX is said to be negotiating financing in order to obtain a valuation of more than 150 billion US dollars.

Wal Mart rose 6.54%. In the third quarter of fiscal year 2023, both revenue and EPS beat expectations, and the full-year adjusted EPS forecast was raised from a year-on-year decrease of 9% to 11% to a decrease of 6% to 7%. At the same time, it announced $20 billion New authorization for stock repurchases.

Home Depot rose 1.63%, Q3 revenue and net profit were better than market expectations, and reiterated its performance guidance for fiscal year 2022.

TSMC rose 10.52%. Buffett's Berkshire Hathaway held a total of 60.06 million shares of TSMC in the third quarter, with a market value of US$4.1 billion.

Sources from: Investing.com; Reuters.com

Louis Yap

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