LongBridge Morning Call | JPMorgan Chase says Tesla will fall more than 40%, Dollar index soars to a new high in nearly two decades

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Asia Pacific Morning

This morning, the Nikkei 225 index opened down 0.88% to 26190.4 points.

Overnight, the three major U.S. stock indexes closed mixed, the Dow fell 0.42% to 30967.82 points, the S & P 500 index rose 0.16% to 3831.39 points, and the Nasdaq rose 1.75% to 11,322.24 points. The market paid attention to the Federal Reserve's June monetary policy meeting notes released Wednesday evening and early Thursday morning in Hong Kong time.

Chevron fell 2.7%, IBM fell 2.46%, leading the Dow. Big tech stocks rose across the board, with Apple up 1.89%, Amazon up 3.6%, Netflix up 3.3%, Google up 4.16%, Facebook up 5.1%, Microsoft up 1.26%. Tesla up 2.55%.

Energy stocks fell across the board, with Exxon Mobil down 3.13%, Chevron down 2.7%, ConocoPhillips down 6.97%, Schlumberger down 6.51% and Occidental down 2.22%.

Most of the popular Chinese stocks rose, with China Online up 40.85%, UNITAO up 32.2%, OneConnect up 19.46%, and New Oriental up 11.33%. Mingchuang Premium Products fell 8.51%. JD.com fell nearly 2%, Baidu rose nearly 2%, NetEase fell more than 1%, and Pinduoduo rose nearly 3%. Alibaba and B station rose 3.6%, Tencent ADR fell nearly 3%, and Faraday Future rose nearly 49%.

Zhongqi New Energy Automobile shares rose collectively, NIO rose 3.79%, Xiaopeng Motors rose 6.08%, and Li Auto Inc. rose 6.1%.

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US Stock News

1. The European Parliament has overwhelmingly passed the Digital Services Act and the Digital Markets Act, respectively. The two laws will come into force around January 2024 and are considered to be mainly aimed at US Internet Tech Giants such as Google, Apple and Amazon.

2. JPMorgan believes that Tesla faces risks in terms of demand, execution and external competition, but the bigger risk comes from the company's strategy of expanding into lower-priced but more demanding markets. They cut Tesla's price from $395 to $385, which means that Tesla will be down 43.5% from Friday's closing price of $681.79.

3. Tesla rolled out a prototype of a solar-powered extended-range trailer, saying it could provide additional cruising range for Tesla's CyberTruck.

4. AstraZeneca will acquire TeneoTwo for $1.265 billion, which will further enrich its blood-oncology pipeline.

Hong Kong Stock News

Tencent security denied that all its data security product lines were abolished, saying that according to business development needs, some of the original data security products were moved to other departments of Tencent's security line, and the team was adjusted and reorganized accordingly.

Singapore News

1. Singapore's Deputy Prime Minister and Minister of Finance, Huang Xuncai, said that the current inflation situation is very unstable and will last longer. In addition, the volatile international situation may bring new shocks. The government will continue to closely monitor the situation and adjust its strategies and measures if necessary. Singapore's economy is not expected to fall into recession or stagflation next year.

2) The Monetary Authority of Singapore has been carefully considering introducing additional consumer protection measures, which could include restrictions on retail player participation and rules on the use of leverage when trading cryptocurrencies.

3. Citi expects that the Monetary Authority of Singapore may tighten policy in late July ahead of schedule and take action again before the semi-annual policy meeting. In addition to possibly steepening the slope of the SGD's volatile range by 50 basis points, they also do not rule out the possibility that the HKMA may also raise the axis of the volatile range by 50 basis points to 100 basis points.

Macroeconomy

1, late in New York, the dollar index rose 1.28% to 106.52, a new high in nearly 20 years. Non-US currencies generally fell, the euro fell 1.49% to 1.0269 against the dollar, and the offshore renminbi fell 179 basis points to 6.7118 against the dollar.

2. Liu He had a phone call with US Treasury Secretary Yellen. China expressed its concern about the cancellation of tariffs and sanctions imposed by the US on China and the fair treatment of Chinese companies.

New car registrations in the UK fell 24% year over year to 140,900 in June, the lowest June sales record since 1996. However, the electric vehicle industry continued to grow, with sales up 14.6%.

Reminders

08:30 Hong Kong, China June HSBC Manufacturing PMI

17:00, Euro area retail sales in May

At 21:00, FOMC Permanent Voting Committee and New York Fed President Williams delivered opening and closing remarks at a series of online events organized by the New York Fed

21:45, the final value of Markit composite PMI in June in the United States