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The rise in the number of infections has shaken investor confidence in the economic recovery. US stocks opened lower on Wednesday (28). The Dow Jones industrial average fell more than 540 points or 2% at the open, the S&P 500 fell 1.9%, the Nasdaq and Rates and a half fell 1.7%.
As European countries gradually tightened their epidemic prevention restrictions, the market expressed concern about the prospects for economic recovery and the European and US equity markets collectively fell.
Several foreign media reported that German Chancellor Angela Merkel will meet with local chiefs later on Wednesday to discuss the tightening of prevention measures for the epidemic. The plan includes closing restaurants, bars and all national entertainment venues and banning public gatherings. , The period is one month.
French President Macron plans to hold a television talk with the population of the entire country on the evening of the same day. The content is expected to include a new round of restrictive measures and may even implement a national blockade.
According to data from Johns Hopkins University, France added 35,000 cases in a single day on Tuesday (27), the UK added 23,000 cases, Italy added 22,000 cases, and Spain added 18,000 cases. For example, Germany added 13,000 new cases.
The worsening of the epidemic situation is not only occurring in Europe. According to the data, this Tuesday about 74,000 new cases were diagnosed in a single day in the United States, and the number of hospitalizations increased 50% compared to the previous month to 44,000. The infections were mainly concentrated in Michigan, Wisconsin and Ohio. Wait for the Midwest.
Since the outbreak of the epidemic, nearly 227,000 people have died from the epidemic in the United States, ranking first in the world.
The rise in the number of infections has added doubts to the outlook for crude oil demand. The American Petroleum Institute (API) said that last week, US crude oil inventories rose by 4.6 million barrels, significantly exceeding the expected 1.1 million barrels. Oil prices fell to three weeks on Wednesday (28). At the lows, Brent crude fell 5% and West Texas Intermediate (WTI) crude fell 5.7%.
While risk sentiment has weakened, investors are turning to US Treasuries.The yield on 10-year US Treasuries fell to 0.748 from 0.778% on Tuesday.
At 21 o’clock on Wednesday (28) Taipei time:
- The Dow Jones index fell 548.88 points or -2.00%, temporarily to 26,914.31 points
- Nasdaq fell 197.97 points, or 1.73%, to 11,233.38 points temporarily.
- The S&P 500 Index fell 63.83 points, or -1.87%, to 3327.30 points temporarily.
- Commissions and a half fell 38.40 points-1.67%, temporarily at 2262.50 points
- TSMC ADR fell 1.83% to $ 85.12 per share
- Yield on 10-year US Treasuries fell to 0.748%
- New York light crude fell 5.69% to $ 37.32 a barrel
- Brent crude oil fell 4.90% to $ 39.18 a barrel
- Gold fell 0.03% to $ 1,878.90 an ounce
- The dollar index rose 0.69% to 93.57 points
Focus actions:
Boeing (BA-US) fell 2.15% to $ 151.91 in early trading.
Key data based on GAAP earnings in the third quarter of 2020:
- Revenue: $ 14,139 million, a 29% year-over-year decrease, better than Refinitiv’s forecast of $ 13.9 billion
- Net loss: USD 466 million and net profit of USD 1,167 million in the same period last year.
Key facts based on non-GAAP earnings in Q3 2020:
- Main operating loss: US $ 754 million, operating profit of US $ 895 million in the same period last year
- Basic operating profit margin: -5.3%, compared to 4.5% in the same period last year
- Basic Net Loss Per Share (LPS): US $ 1.39, better than Refinitiv’s expected loss of US $ 2.52 and EPS of US $ 1.45 in the same period last year
- Free cash flow: US $ 5,081 billion, better than the previous quarter, US $ 5.6 billion
General Electric (GE-US) rose 4.93% in early trading to $ 7.45.
Key data based on GAAP earnings in the third quarter of 2020:
- Revenue: US $ 19.42 billion, a 17% year-on-year decrease, better than the US $ 18.73 billion expected by Refinitiv
Key data based on non-GAAP financial reports in Q3 2020:
- Adjusted EPS: 6 cents, a 60% annual reduction, better than Refinitiv’s expected loss per share of 4 cents
- Industrial Free Cash Flow: $ 514 million, a 21% annual decrease
Microsoft (MSFT-US) fell 3% in early trading to $ 206.7.
Key Figures for the First Fiscal Quarter of Fiscal 2020 vs. Analyst Expectations
- Adjusted EPS: $ 1.82 vs. US $ 1.54 (consensus expectations in Refinitiv survey)
- Revenue: USD 37.15 billion vs. USD 35.72 billion (consensus expectations in Refinitiv survey)
Key facts for the second fiscal quarter of fiscal 2020
Daily key economic data:
- The initial value of the monthly growth rate of the US wholesale inventory in September reported: 0.1%, the previous value was 0.4%
- The initial monthly growth rate of US retail inventories in September was 1.6% and the previous value was 0.8%.
- At 10:30 p.m. Taipei time, the rise and fall of crude oil inventories from the EIA will be announced last week, the old value: 1,002 million barrels.
Wall Street Analysis:
Hugh Gimber, global market strategist at JPMorgan Asset Management, said: “A month ago, the market had a lot of limited and specific narratives about the lockdown. These had less impact on the economy, but what we see now is a broader concern. The blockade can have a wider range and a greater range of impact. “
Jeff Mills, chief investment officer at Bryn Mawr Trust, said: “Once a confirmed case hits a record, it will attract attention. Putting the data together with the failed rescue negotiation outcome will create a negative catalyst.
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