SK Hynix listed in the US; Strait of Hormuz shipping halted
SK Hynix will list on the Nasdaq on Friday, with the fundraising size setting a record for foreign companies' IPOs in the US. Shipping in the Strait of Hormuz has nearly stalled. Mark Zuckerberg denies that Meta has excess computing power. China has issued the "15th Five-Year Plan" carbon peak action plan. It is reported that several former and current Chinese officials have held talks with US experts to assess the White House's policy intentions towards China. Nexchip will list on the Hong Kong stock market on Friday.
Overnight Highlights
– Driven by a strong rebound in the chip sector, the three major US stock indices closed higher across the board. As previous selling pressure was released, allocation funds entered the market on dips, leading to a significant decline in US Treasury yields across all maturities. Constrained by falling US Treasury yields, the US Dollar Index struggled to advance and remained largely stable intraday. Despite the near-stall of Hormuz shipping, technical talks between the US and Iran have significantly eased market concerns about an expansion of the Middle East conflict, causing international oil prices to plummet. Benefiting from the supportive boost from the across-the-board decline in US Treasury yields, spot and futures gold stabilized and rebounded strongly.
International News
– South Korean memory chip giant SK Hynix (SKHY.US) will begin pre-IPO trading on the Nasdaq on Friday, transitioning to regular trading next Monday. The company set the ADS issue price at $149 per share, raising $26.5 billion, a record for foreign company IPOs in the US.
– Shipping in the Strait of Hormuz has nearly stalled. Following Donald Trump's threat to blockade Iranian ports, Tehran urgently shipped out about 11 million barrels of crude oil within 24 hours.
– The President of the New York Fed stated that he is particularly focused on the impact of AI-related demand on inflation, and if such demand persists, it may force the Fed to raise rates.
– Meta (META.US) CEO Mark Zuckerberg denied having excess computing power, stating that developing cloud business has commercial potential. He also set an "aggressive" pricing strategy for the company's AI tools, with API pricing at about 25% of OpenAI and Anthropic's top models.
– Micron Technology (MU.US) has increased its US investment plan to $250 billion, betting on demand for AI storage chips.
– S&P downgraded Oracle's (ORCL.US) credit rating to BBB-, the lowest level within the investment grade, citing the company's increasing spending in the AI field.
– Wall Street's five major banks will report earnings next Tuesday. After months of market volatility, most large investment banks' stock trading revenue is expected to reach the second-highest level in history.
Greater China News
– In June, the national Consumer Price Index (CPI) rose by 1.0% year-on-year, and the national Producer Price Index (PPI) for industrial products rose by 4.1% year-on-year.
– China's State Council issued the "15th Five-Year Plan" carbon peak action plan, proposing to promote the large-scale development of new energy storage and encourage factories and data centers to use more renewable energy.
– It is reported that several former and current Chinese officials, including former Chinese Ambassador to the US Cui Tiankai, recently held talks with US experts to assess the White House's policy intentions towards China.
– The European Union announced anti-dumping duties of 4.3% to 45.3% on passenger car and light commercial vehicle tires imported from China.
– China Association of Automobile Manufacturers (CAAM): From January to June this year, China's new energy vehicle production and sales reached 7.438 million and 7.446 million units respectively, representing year-on-year growth of 6.7% and 7.3% respectively.
– Chinese wafer foundry company Nexchip (02249.HK) $NEXCHIP(02249.HK) will list on the Hong Kong stock market on Friday. Its grey market price surged up to 14.6% on Thursday, with an issue price of HK$32.3.
Commodity and Forex Markets
– Traders expect the US-Iran conflict to be limited in scale, and concerns about renewed attacks on energy infrastructure have eased, dragging crude oil futures to close sharply lower. Benefiting from a significant decline in US Treasury yields, spot and futures gold both stabilized and rebounded.
Earnings and Economic Data Focus
– US Total Oil Rig Count for the week ending July 10 (Previous: 445, Forecast: --)
– US June NFIB Small Business Optimism Index (Previous: 95.3, Forecast: 95.5)
Source: Golden Horse Capital Management (Hong Kong) Limited
Author: Terry Chow
Proofreader: Gloria Guo
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