Fixed Income Market Overview
On Thursday, U.S. Treasury yields increased as investors analyzed recent economic data and its potential impact on Federal Reserve policy. The 10-year Treasury yield rose by 2 basis points to 4.373%, and the 2-year Treasury yield climbed by over 5 basis points to 4.789%. Bond prices move inversely to yields, with one basis point equaling 0.01%.
The rise in yields followed data showing jobless claims aligning with expectations and import prices surging by 0.9% in April, significantly above the 0.3% consensus estimate. Investors also considered April’s consumer price index (CPI) data, which increased by 0.3% monthly, slightly below the 0.4% forecast, and 3.4% annually, matching expectations. These signs of easing inflation were welcomed as investors hope for inflation to move closer to the Fed’s 2% target, potentially prompting rate cuts.
However, Fed policymakers, including Chairman Jerome Powell, have indicated that interest rates would only be reduced once there is clear evidence of sustainably cooling inflation. Powell emphasized the need for patience, noting that inflation remains higher than anticipated, supported by the higher-than-expected producer price index, which showed a 0.5% monthly increase in April.
Shein switches focus to London after New York IPO stalls.
US stocks lose steam after Dow hits milestone 40000 mark.
Chip Startup Ampere Teams Up With Qualcomm for AI Server Push.
Siemens posts industrial profit drop as automation division slows.
Microsoft offers relocation to hundreds of China-based AI staff amid U.S.-China tech tensions.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,869.38 | -38.62 | -0.10%↓ |
| NASDAQ | 18,557.96 | -38.69 | -0.21%↓ |
| SNP 500 | 5,297.10 | -11.05 | -0.21%↓ |
| NIKKEI | 38,920.26 | 534.53 | 1.39%↑ |
| HIS | 19,376.53 | 302.82 | 1.59%↑ |
| VIX | 12.42 | -0.03 | -0.24%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.38% | 0.04 |
| US 30-YR | 4.51% | 0.00 |
| US 5-YR | 4.40% | 0.05 |
| JPN 10-YR | 0.93% | -0.03 |
| UK 10-YR | 4.09% | 0.02 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 79.23 | 0.60 | 0.76%↑ |
| NAT GAS | 2.495 | 0.079 | 3.27%↑ |
| GOLD | 2,385.50 | -9.40 | -0.39%↓ |
| SILVER | 29.88 | 0.15 | 0.49%↑ |
| COPPER | 4.877 | -0.048 | -0.96%↓ |
Equity Market Overview
JD Sports
JD.com Inc. posted a robust 7% revenue increase, surpassing expectations, driven by aggressive pricing strategies and enhanced customer incentives amidst intense market competition in China. The company’s sales surged to approximately 260.1 billion yuan ($36 billion) in the March quarter, outpacing projections and marking accelerated growth from the previous quarter. With net income soaring by a strongerthan- anticipated 13.9% to 7.1 billion yuan, JD.com’s shares rose by about 4% in pre-market trading in New York. Seen as a significant indicator of Chinese consumption trends, JD.com’s performance reflects its adeptness at navigating economic challenges and fending off competitors like PDD Holdings Inc. and ByteDance Ltd. Despite concerns over China’s subdued economy, JD.com has intensified efforts in discounting, livestreaming commerce, and international expansion, bolstered by investments in artificial intelligence and cloud computing services, alongside a notable increase in share repurchase activity, signaling confidence in its growth trajectory.
Ubisoft
Ubisoft Entertainment SA experienced a significant decline in shares, marking the steepest drop in 16 months, following the company’s announcement of lower-than expected net bookings for the first fiscal quarter. Projections indicate net bookings around €275 million, notably below analysts’ consensus of €376 million. Share prices plummeted by 15% to €19.78, the sharpest dip since January 12, 2023. Despite reporting an adjusted operating income of €401 million for the previous fiscal year and anticipating marginal growth, Ubisoft’s guidance for the current year fell short of expectations, leading CIC Markets to revise its adjusted operating income forecast from €471 million to €412 million. Notably, Ubisoft’s strategic plans include the release of two highly anticipated games, “Assassin’s Creed Shadows” and “Star Wars Outlaws,” within the fiscal year.
Tencent Holdings
Tencent Holdings Ltd. experienced a notable surge in shares, marking its most significant increase in over three weeks, following a remarkable earnings report that surpassed expectations, indicating successful competition against ByteDance Ltd. in China’s dynamic internet landscape. With a 62% rise in net income propelled by a doubling of ad sales through its TikTokstyle video platform, Tencent’s stock soared by up to 4.8% in Hong Kong trading. The company’s performance outshone that of Alibaba Group Holding Ltd., showcasing a growing disparity between China’s leading internet giants amid a challenging post-Covid recovery. Tencent’s success was underscored by a substantial increase in user engagement on its WeChat video accounts, driving a notable 26% surge in ad revenue and achieving its highest gross margin since 2016, bolstered further by cost reductions and robust growth in advertising and cloud services.
