Stock market shares

On ECB day, China celebrates and Tesla disappoints

While awaiting the outcome of today's ECB meeting, China and Tesla become protagonists of the markets.
In Asia, most stocks rose in the session that is about to close.
The run in Chinese stocks was driven by bets that the latest stimulus measures from Beijing could revive a deep economic crisis that has also affected the dragon's stock market.
The People's Bank of China surprised investors yesterday with a plan to cut banks' reserve requirement ratios next month.
Tesla reported fourth-quarter revenue and profit below analysts' estimates.
The stock slipped nearly 6% in after-hours trading.
Investors' attention, however, is about to shift entirely to the ECB which meets today and releases its decision on rates in the early afternoon shortly before Lagarde's press conference.
While policymakers are expected to keep rates unchanged this week, the focus is on clues to the path forward.
Wednesday's euro area data showing that private sector activity contracted again in January indicates that the ECB will have to delay rate cuts until June, according to Bloomberg Intelligence.
China, stocks soar on the back of new stimulus Chinese indices closed a session with strong gains.
Shanghai rose more than 3%, while Shenzhen rose 1.93%.
Property developers, infrastructure companies and shares of state-owned enterprises provided the biggest boost to Chinese stocks.
So far, however, investor frustration has been high (as has the sell-off in Chinese stocks) and disappointment with Beijing has prevailed over the lack of a large-scale response to China's economic slowdown.
But Wednesday's cut to bank reserve requirements raised expectations for official support.
“Coupled with further measures for increased liquidity, credit support and upcoming plans to stabilize financial exposures in the real estate sector, we expect markets to agree with the 'stabilisation' narrative at least through the Lunar New Year,” said Geoff Yu, strategist at BNY Mellon.
read also China surprises everyone with this decision to curb the crisis However, there is still skepticism.
In fact, some analysts have pointed out that since 2020 the RRR cuts have not given impetus to Chinese stocks, with the CSI 300 benchmark losing almost 4% three months after this reduction.
“Given that the first two cuts last year failed to significantly reverse economic conditions, the eventual effectiveness of the latest cut is still in question,” said Jun Rong Yeap, market strategist at IG Asia.
Yeap said he still sees the PBOC's latest move as useful only for "a temporary easing of extremely bearish sentiments for Chinese stocks." Tesla Disappoints in Quarterly Report Tesla reported revenue growth of 3% in the fourth quarter, below estimates, with automotive revenue up just 1% from a year earlier.
Vehicle volume growth in 2024 “may be significantly lower” than last year's growth rate, the company warned.
Tesla shares fell 6% in after-hours trading.
After years of breakneck growth, Tesla is preparing for slow growth and margins as demand for electric vehicles fades and competition intensifies.

Author: A.W.M.

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