As China introduced greater Covid lockdowns, investors are also looking towards Fed comments on interest rates. Technically, companies that derived a large bulk of their sales from China are badly hurt.
The latest round of lockdown is a big disappointment. It dampens the possibility of any hope that is set to reduce the scope of Zero-Covid policy measures next year. Moreover, as China is a major oil buyer, we are also seeing weakness in the WTI Crude oil prices hitting around $75 per barrel at one time.
Nonetheless, Pika World expects investors’ attention to return to the FOMC minutes this week.
🚘Tesla: General weakness continuesðŸ”
The EV giant stock weakens on Monday, and investors have many reasons to blame, such as the Twitter chaos, the weak market sentiment and China’s woes. Chartists expect more pain ahead, and with Monday’s fall, the share is down by more than 50% this year.
Some technical analysts see some support for the stock at $166. Compared to its high in Jan 2022, the stock is down by around 56%. If the support of $166 does not hold, Pika World sees further downside pressure to $150 as the next leg.
The stock trades at around 31 times its 2023 estimated earnings, far higher than the 17 times multiple of the S&P 500. Pika World is considering further entry on weakness in the stock.
📮What’s on the menu today?📖
At midnight, FOMC Mester is expected to speak. FOMC member George follows this at around 3.15 am, and our most dreadful speaker, Bullard, speaks at 3.45 am.
Fed speakers’ comments are critical to shed light on the next gue
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