Stock market futures under pressure amid new strain of virus
Futures contracts in the stock markets make considerable downward movements in trading early on Friday morning. It came as investors braced for a shortened trading day amid a new strain of the virus found in South Africa. Before the market closes Thursday for Thanksgiving, several strong economic reports were released. In short, personal income and consumer spending in October was higher than expected. On top of that, initial jobless claims also hit their lowest level since 1969.
“That’s a scary headline “on the virus variant, so this may have caused a knee-jerk reaction. North America out of office means there is a wall of missing buyers “and thinner markets lead to more pronounced moves.”“- said Kyle Rodda, analyst at IG Markets
The new tension comes at a time when markets are already facing headwinds linked to inflation and fears of tightening monetary policies. Meanwhile, crude oil prices and Treasury yields continue to decline in the stock market today. As of 7:19 a.m. ET, the Dow, S&P 500 and Nasdaq futures are trading down 2.13%, 1.56% and 0.47%, respectively.
China asks Didi to withdraw from US for security reasons
There has been long speculation that a giant hails Didi Global (NYSE: DIDI) faces potential delisting from the New York Stock Exchange. Of course, nothing is set for the moment. But Chinese regulators have asked the company’s senior executives to work out a plan to delist from the US stock exchange. Unless you’ve lived under a rock, you would know that China is pursuing a broad crackdown on its tech companies. On the contrary, regulatory risk remains arguably the biggest threat affecting most Chinese equities today.
Investors should note that increasing state supervision and regulations are the new normal when it comes to investing in Chinese stocks. For example, Tencent (OTCMKTS: TCEHY) is committed to working with the Chinese government as part of the overhaul of its policy towards national companies operating internationally. There is no doubt that this could directly affect businesses. Certainly, many investors may scratch their heads with these developments. But GFM Asset Management’s Tariq Dennison doesn’t expect long-term investors to be put off by the uncertain regulatory outlook.
“If you ask me, the new regulations are more likely to strengthen these companies and give them a wider moat, because Tencent is very, very likely to be able to adapt to any of these new rules, to find new ways. to earn money. And they have many, many consumers to serve in a common prosperity model,â-Tariq Dennison of GFM Asset Management.
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Baidu (BIDU) launches its Robotaxi activity
The Chinese search engine giant Baidu (NASDAQ: BIDU) continues to step up its ambitions for autonomous driving. True, the company was granted permission on Thursday to operate its commercial robotic taxi services in a specified area in Beijing. This is a major step towards the development of its driverless taxi business. Following this news, investors may take a close look at Baidu shares in the stock market today.
According to CEO Robin Li, Apollo go, Baidu’s robot taxi service, aims to have a presence in 65 cities by 2025 and 100 cities by 2030. So far, Baidu can only offer public robot taxi rides when a driver security accompanies passengers. But that could change within a year or two. Autonomous taxi operators like Alphabet(NASDAQ: GOOGL) Waymo has tested similar products in California and Arizona. For Apollo, it is obvious that they are ready to open these autonomous driving technologies to other international markets as well.
“We have partnered with many transportation companies in China and try to partner with similar companies in other places. If there is such demand for autonomous driving in other markets, Baidu is willing to cooperate with overseas partners, whether operating company, car manufacturer or other. transport company. We can export our technologies and experience, and operate jointly in certain areas based on compliance with local laws and regulations.“- said Wei Dong, vice president of Baidu intelligent driving group.
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Tesla steps up investments to expand capacity at Shanghai plant
Reports said You’re here (NASDAQ: TSLA) plans to invest up to $ 188 million to increase production capacity at its Shanghai plant. Despite growing regulatory pressure on consumer disputes over product safety and the way the king of electric vehicles handles data, the automaker’s sales in China continue to rise. The record showed that the expansion will allow Tesla to add 4,000 employees. This would bring the number of people the plant can employ to 19,000.
Those who follow the company closely will remember the electric vehicle maker’s latest plan to invest heavily in the highly anticipated âGigafactoryâ in Austin, Texas. According to a recent public record, Tesla is expected to spend at least $ 1.06 billion on the new electric vehicle plant. In addition, general construction of the facility is expected to be completed by December 31. This includes the facilities necessary for the bodywork, stamping, molding and complete assembly of the vehicle, among other key manufacturing assets.
According to CNBC sources, this is all from construction records with the Texas Department of Regulation. Once construction is complete, the Gigafactory will focus on producing Tesla’s next electric pickup, the Cybertruck. In addition, the company will also manufacture its Model 3 and Y electric vehicles there. Overall, EV players like Tesla continue to scale up their operations. And investor focus on the electric vehicle industry may continue to grow. With the company leading this charge, it wouldn’t surprise me to see TSLA stocks gain traction.
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Nio to develop co-branded network of charging solutions with Shell
Chinese electric vehicle manufacturer Nio (NYSE: NIO), often dubbed Tesla of China, hasn’t been short of good news in recent weeks. We have seen its expansion into Europe and the completion of a $ 2 billion stock offering recently. So, I can understand why many think NIO stocks are a good investment in EVs right now. Of course, one of the facets that sets Nio’s EV strategy apart from its competitors is its battery swap technologies.
On Thursday, Nio officially announced a strategic partnership with Shell (NYSE: RDS.A). The joint effort in China will begin with two pilot sites with a goal of reaching 100 sites by 2025. Through this partnership, consumers can have access to Shell Recharge high-speed charging at Nio locations. Meanwhile, battery swap services will also be available at convenient Shell locations. With charging and battery swapping in more places, it would almost certainly provide a better experience for electric vehicle owners.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.