[True Burn Finance] September 17 Market Brief: The reason why Intel's stock price rose 8% after hours

"Other headlines: How much did Midea Group rise on its first day in Hong Kong | What did Microsoft announce"

Market Highlights

l Asian stocks were stable, while U.S. futures fell. Markets in China and South Korea were closed for holidays. The dollar hovered near its lowest level since January as traders prepared for potential significant rate cuts by the Federal Reserve. Goldman Sachs suggested it's time to buy the dip in AI stocks, while Bank of America recommended dividend stocks. U.S. Treasuries fell, and WTI crude rose.

l The Hang Seng Index opened 0.7% higher, climbing 124.9 points to 17,547.02, marking the fourth consecutive day of gains for Hong Kong stocks. Meituan Dianping contributed the most to the index's rise, gaining 1.5%. Wharf REIC saw the biggest increase, rising 3.0%. In early trading, 69 out of 82 stocks advanced, while 10 declined; all sectors rose, led by commercial and industrial stocks.

Options Summary

l $LI NING(02331.HK) and CLP Holdings were among the stocks with lower put/call ratios and higher put/call ratios in the Hang Seng Index.

l Sinopec Group's call open interest was 2.09 standard deviations above its 20-day average, while Sun Hung Kai Properties' open interest was 1.68 standard deviations above its 20-day average.

l $BANK OF CHINA(03988.HK) and Meituan saw increased trading in both call and put options.

l There were about 6 call trades per put trade for BOC Hong Kong, while China Construction Bank had about 23 call trades per put trade.

Key News

l On Tuesday, most Asian markets rose, but Tokyo stocks fell more than 1% as exporters were hit by a stronger yen, with traders preparing for significant U.S. rate cuts and a key Bank of Japan meeting. Bets on the Fed cutting borrowing costs by as much as half a percentage point have surged in recent days, with observers believing Fed officials want to front-load a series of expected rate cuts. This pressured the dollar, which fell below 140 yen for the first time since summer 2023 on Monday and weakened against other major currencies. A series of recent data points suggest U.S. inflation is returning to the Fed's 2% target while the labor market is slowing, giving policymakers room to ease monetary policy.

l Chinese appliance maker Midea Group Co. saw its shares jump as much as 9.5% to HK$60 in early trading from its IPO price of HK$54.80 per share, the top of the marketed range. The Foshan-based company's $4 billion listing was Hong Kong's largest IPO since Kuaishou Technology's $6.2 billion offering in early 2021.

l Intel said it would produce custom AI chips for Amazon's AWS while delaying new plant construction in Germany and Poland, sending its shares up nearly 8% after hours. According to Bloomberg Intelligence, while this is a vote of confidence in Intel, the development does little to slow its sluggish product growth.

l Amazon CEO Andy Jassy will cut management layers and require employees to return to the office five days a week starting next year.

l BlackRock is restructuring its private credit business, with Stephan Caron leading a new unit. Jim Keenan, global head of private debt and a veteran, will depart next year, as will U.S. private capital co-head Raj Vig.

l Millennium hired former Citigroup executive Arnaud Leteissier as a senior portfolio manager in Hong Kong.

l Microsoft raised its quarterly dividend by 10% and announced a $60 billion buyback plan. Shares rose after hours.

l Tupperware plunged 58% after sources said the company is preparing to file for bankruptcy. The company reported on Tuesday.

l Egypt said Saudi wealth fund PIF will invest $5 billion in the country.

l U.S. retail sales likely fell 0.2% in August. Industrial production may have grown. Canadian inflation may have cooled.

l Sources said the ECB is pressuring banks for details on their dealings with private credit firms. Separately, Martins Kazaks said the central bank will cut rates further but shouldn't rush.

l The EU is prepared to provide Ukraine with up to €40 billion in loans by year-end, regardless of U.S. participation, the FT reported.

l Indian Finance Minister Nirmala Sitharaman said the fiscal deficit will fall to or below 4.5% of GDP by March 2026. She also warned retail investors against stock market speculation.

l Thailand will nominate former finance minister Kittiratt Na-Ranong as BOT governor, Reuters reported.

l South Korea hopes its bonds will be included in FTSE's global debt index next month, though major banks remain skeptical.

l Landlord Tricap sold three California office buildings leased by Apple. Brookfield is reportedly exploring a sale of its Fifth Avenue retail property in NYC.

l Chris Rokos' hedge fund suffered one of its worst losses ever last month, sliding 5.2%, a source said.

l Cherry Technologies is working with Barclays on plans to issue asset-backed bonds tied to "buy now, pay later" loans.

l Boeing froze hiring and will impose temporary furloughs on "many" employees.

l Mastercard CFO Sachin Mehra will undergo treatment for non-Hodgkin lymphoma but remain actively involved in daily operations.

l People moves: Bank of America named Jim Rourke and Michael Liu co-heads of private client partnership development. Jefferies reportedly hired ex-Citi banker Simon Francis. Fidelity brought on former Vista Credit director Lendell Thompson.

l Chart of the day: Bond traders haven't been this divided two days before a non-emergency Fed meeting since 2007. Beyond Tuesday's August retail sales report, traders have little other data to lean on.

Today's Forex and Commodities Focus

l Asian currencies strengthened on Tuesday, with the yen near a 2024 high as the dollar retreated on growing bets for significant Fed rate cuts this week.

l Oil extended gains on Tuesday as markets focused on U.S. production concerns post-Hurricane Francine and expectations of falling U.S. crude inventories.

Source: Goldhorse Capital Extramile