Your bite-sized weekly update (12 June)

What happened?

Source: Bloomberg. Price data as of market close on 10 June 2022.
 

US markets fell sharply for the week as stronger than expected consumer price index (CPI) data led to renewed inflation concerns. 

The CPI rose 8.6% YoY in May, representing a 40-year high and exceeding market expectations for a moderation in inflation to 8.3%. 

China stocks were a bright spot once again after there were more signs of regulatory easing after it was reported that Chinese regulators are getting ready to conclude investigations into Didi. There was further optimism after Chinese regulators approved the publishing of several video games, the first since July 2021.

Alibaba saw significant swings in its share price after Bloomberg reported that Chinese regulators have started early-stage discussions on a potential revival of Ant Financial’s listing. The bounce in Alibaba’s share price was short lived as Ant said that there were currently no plans to revive a public listing.

The Singapore market fell in together with the US market. Energy stocks saw gains, led by Dyna-Mac which saw increasing orders from customers. Frasers Hospitality Trust was halted pending an announcement by the company, and Bloomberg reported that Thailand’s TCC Group is seeking a $500 million loan to take the company private. 

What you need to know

NIO faces a road bump: 5 highlights from the Chinese EV maker’s 1Q22 results

NIO’s share price fell after the company reported its 1Q 2022 results, as investors were disappointed by the decline in profit margin with rising raw material prices.

Read more here

What the end of Didi’s cybersecurity probe means for China tech investors

Chinese regulators are getting ready to conclude investigations into Didi, according to press reports. This is seen by investors as a positive sign for the Chinese tech sector.

Read more here

Will Pegasus Asia be Singapore’s first SPAC to make an acquisition?

According to Bloomberg, Pegasus Asia is the leading contender to bring Kacific Broadband Satellites to go public via through a special purpose acquisition company (SPAC) merger.  

Read more here

What to look out for in the week ahead

The US Federal Open Market Committee (FOMC) will hold its June meeting on Tuesday and Wednesday, where it is expected to raise interest rates again by 0.5 percentage points. 

Earnings are expected from Oracle on Monday.