【True Burning Finance】April 25 Market Morning Report: U.S. President signs a package of bills including the TikTok proposal; Meta's revenue outlook falls short of expectations
"Meta (META.US) shares plunged about 15% after hours, as the company's midpoint revenue guidance for Q2 fell short of analyst estimates. Additionally, due to heavy investments in AI, Meta expects capital expenditures to continue rising."
Overnight Highlights
l U.S. stocks were volatile on Wednesday as investors weighed rising Treasury yields against earnings reports from tech giants. Long-term Treasury yields climbed. The yen fell to its lowest level against the dollar since the mid-1990s, hovering above the key 155 yen threshold. Oil prices dropped as Middle East conflict concerns eased and U.S. business activity slowed, though a decline in U.S. crude inventories limited losses. Gold edged lower, while copper rebounded after two days of declines. $Hang Seng Index(00HSI.HK)
Global News
l U.S. factory orders for business equipment rose only slightly in March, with February data revised downward, signaling corporate caution on demand and restrained investment.
l The contract rate for 30-year fixed mortgages rose 11 bps to 7.24% in the week ending April 19, the highest in five months, per MBA data.
l Bank of Canada April meeting minutes showed policymakers agreed rates would likely be cut gradually despite differing views on timing, given slow inflation progress and risks.
l The yen breached 155 against the dollar for the first time since 1990, heightening intervention risks; losses narrowed by Thursday Tokyo trading.
l $Microsoft(MSFT.US) and $Amazon(AMZN.US) face UK antitrust scrutiny over AI startup investments.
l $Meta Platforms(META.US) shares tumbled ~15% post-market as Q2 revenue guidance midpoint missed estimates. AI spending will drive higher capex.
Greater China News
l U.S. Secretary Blinken will meet Chinese officials in Shanghai Thursday and visit Beijing Friday, potentially seeing Xi Jinping, to pressure Beijing on Russia support and overcapacity.
l Bloomberg: China regulators reportedly told major brokers to halt new A 股 OTC derivatives including "snowball" options this week. Restrictions are temporary but timeline unclear.
l The Beijing Auto Show opens Thursday with BMW, Mercedes execs attending. Volkswagen aims for ~4M China sales by 2030 (~15% share).
l The U.S. Senate passed a foreign aid bill including TikTok divestiture, signed by Biden Wednesday. ByteDance has 270 days to spin off or face a U.S. ban.
Commodities & FX
l The yen hit a 34-year low vs USD as Treasury yields rose on supply/inflation worries.
l Oil prices fluctuated Wednesday amid larger-than-expected U.S. crude drawdowns versus risk-off sentiment.
l Copper rebounded though Yangshan premiums signal weak China demand. Gold steadied after two-day drop as traders awaited U.S. inflation data for Fed clues.
Earnings & Data Watch
l U.S. Initial Jobless Claims (Apr 20): Exp. 215K, Prev. 212K
Source: Goldhorse Capital Extramile
Author: Terry Chow
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