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The European Council has approved Hungarys new Recovery and Resilience Plan (RRP). The EU states that this new plan will allow for €10 billion in funding to Hungary, including approximately €6.5 billion in grants and €3.5 billion in loans.On July 10th, Andrew Hitz, Global Head of Fixed Income Research at Morgan Stanley, stated that the bank is closely monitoring three major obstacles that could cause a summer setback for the stock market; historically, summer is typically the strongest season for stock market performance. The first major risk is a resurgence of the conflict with Iran. Hitz stated, "The US Strategic Petroleum Reserve has fallen to a historic low, and if the conflict escalates again, this could weaken its ability to withstand shocks." The second major risk is a Federal Reserve interest rate hike. Hitz pointed out that the expectation that the Fed will keep interest rates unchanged until the end of the year is one of the key pillars supporting the current stock market bull run. "The risk is that this assumption may be wrong, and that mistake could soon become apparent. Of course, there is the view that if the Fed is concerned about inflation, it should not delay its actions." The third is a weakening outlook for AI capital expenditures. Hitz said, "The risk is that second-quarter earnings reports may show a more cautious approach to spending, perhaps due to the recent poor performance of some companies that have heavily invested in AI. Given the current high correlation between growth and earnings prospects and AI, and investors strong preference for AI-related stocks, this situation poses a risk."The UK government stated that this designation, which involves cloud services, aims to minimize the impact of cloud service disruptions.On July 10th, Q Technology (01478.HK) announced that, in June 2026, the sales volume of the company and its joint venture, Q India, for its main products was as follows: Mobile phone camera modules: 39.715 million units, a decrease of 12.0% month-on-month and an increase of 21.6% year-on-year; among which, camera modules with less than 32 megapixels: 25.006 million units, a decrease of 9.8% month-on-month and an increase of 56.0% year-on-year; Camera modules with 32 megapixels and above: 14.709 million units, a decrease of 15.5% month-on-month and a decrease of 11.5% year-on-year. Other camera modules and LiDAR: 1.785 million units, a decrease of 23.9% month-on-month and an increase of 5.0% year-on-year. The total sales volume of camera modules and LiDAR: 41.5 million units, a decrease of 12.6% month-on-month and an increase of 20.8% year-on-year. Biometric modules: 11.961 million units, a decrease of 13.4% month-on-month and a decrease of 13.9% year-on-year. From January to June 2026, a total of 239 million mobile phone camera modules were produced, along with 12.314 million camera modules and LiDAR modules in other fields, and 86.948 million biometric modules. In June, QTech of India produced 10.08 million camera modules, a 6.3% increase month-over-month and a 261.0% increase year-over-year; and 1.28 million biometric modules, a 25.3% decrease month-over-month and a 36.6% decrease year-over-year.Sources revealed that Philippine Airlines will order 15 Boeing (BA.N) 787-10s and 9 Airbus A350-1000 jets.

Wall Street closes higher, with the financial and healthcare sectors driving the advance

Charlie Brooks

Sep 09, 2022 10:33

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Thursday's gains in the major Wall Street indexes were the result of investors digesting hawkish comments from government officials, which strengthened expectations for a significant interest rate hike later this month. The advances were mostly driven by financial firms and healthcare companies.


Concerns regarding the Federal Reserve's future steps to combat inflation led to choppy trading conditions.


Grace Lee, senior portfolio manager for equity income at Boston-based Columbia Threadneedle Investments, stated, "There is just a great deal of uncertainty, and I don't believe people will make a decision for more than five minutes or five seconds until there is a little more clarity or light at the end of the tunnel."


87% of money market traders believe that the Fed will raise rates by 75 basis points at its meeting this month.


Bank of America (NYSE:BAC), Barclays (LON:BARC), and Jefferies have said that they now predict a 75 basis point increase in interest rates. Bank of America and Jefferies expected a 50-basis point increase prior to Barclays' prediction of a 50- or 75-basis point hike. Jerome Powell, chairman of the Federal Reserve, indicated that the central bank is "totally committed" to controlling inflation and must endure until the objective is achieved. Charles Evans, president of the Federal Reserve Bank of Chicago, concurred with his fellow policymakers that containing inflation is "task one." Furthermore, investors anticipate the U.S. inflation report for August the following week for fresh indications as to whether the Federal Reserve will raise interest rates by a half percentage point or three-quarters of a percentage point at its next policy meeting on September 20-21.


Concerns over aggressive global monetary tightening froze equity markets on Thursday, as the European Central Bank raised interest rates by a record 75 basis points and forecasted further increases. The number of Americans filing new claims for unemployment benefits reached a three-month low last week, demonstrating the durability of the labor market despite the Federal Reserve's interest rate increases. The rate-sensitive S&P 500 bank index and the rate-sensitive S&P 500 healthcare sector both climbed by 2.8% and 1.8%, respectively, as the probability of another excessive rate increase grew. The announcement that Regeneron Pharmaceuticals Inc (NASDAQ:REGNanti-blindnessEylea )'s treatment was equally effective when provided at a higher dose and with a longer interval between injections boosted the healthcare sector. The stock of the corporation surged 18.8%.


Similar to the broader financial sector, healthcare is an extremely secure and still relatively affordable industry, according to Lee. To hit 31,774, the Dow Jones Industrial Average increased 193.24 points, or 0.61 percent. The S&P 500 rose 26.31 points, or 0.66 percent, to 4,006.18 and the Nasdaq Composite advanced 70.23 points, or 0.61 percent, to 11,863. The stock of GameStop Corp (NYSE:GME) increased by 7.4% after the video game retailer reported a quarterly loss that was smaller than expected. American Eagle Outfitters (NYSE:AEO) slumped 8.7% after the apparel maker missed second-quarter earnings estimates and announced it will stop its quarterly dividend to protect its finances from inflation.


The volume on U.S. exchanges was 10.19 billion shares, compared to the 20-day daily average of 10.37 billion shares.


On Wednesday, the major indexes on Wall Street climbed the most in about a month, as bond yields dipped after a recent rally fuelled by expectations of higher interest rates. Despite this, the S&P 500 is down over 16% so far this year.


On the NYSE, rising stocks outnumbered falling ones 1.34 to 1; on the Nasdaq, the ratio was 1.48 to 1.


Seven new 52-week highs and eight new lows were recorded for the S&P 500, while the Nasdaq Composite recorded thirty-seven new highs and one hundred fifty-three new lows.