Welcome to the latest edition of Top Stock Market Highlights.
Singapore GDP
Good news for Singapore’s economy.
Gross domestic product (GDP) growth in the fourth quarter of 2023 (Q4 2023) was 2.8% year-on-year, almost triple the 1% recorded in the third quarter of 2023 (Q3 2023). Ta.
These figures are based on preliminary estimates provided by the Ministry of International Trade and Industry (MTI).
Singapore’s economy grew by 1.7% in Q4 2023 on a sequential basis, slightly higher than the 1.3% QoQ growth rate in Q3 2023.
Singapore’s GDP growth rate in 2023 was 1.2%, within the Monetary Authority of Singapore’s (MAS) forecast of 0.5% to 1.5%.
Prime Minister Lee Hsien Loong released his New Year’s message on 31 December 2023, stating that MTI expects Singapore’s GDP growth rate to be between 1% and 3% in 2024.
Furthermore, inflation is expected to ease, although this depends on the external environment.
These numbers bode well for Singapore as it enjoys a rise in tourism, with global air travel numbers expected to exceed pre-pandemic levels this year.
us federal reserve system
The last US Federal Reserve meeting minutes of 2023 revealed that interest rates are likely to peak.
Almost all members agreed that it would be appropriate to lower interest rates by the end of this year.
The news should be a breath of fresh air for the REIT sector, which has been affected by lingering pessimism over last year’s high inflation and soaring interest rates.
However, there is no indication as to when the cuts will begin.
The US central bank also left the door open to the possibility of raising interest rates if inflation flares up again.
Participants agreed that inflation remains well above the Federal Reserve’s 2% target and that interest rates will need to be held steady for “a longer period of time” to achieve this goal. did.
Interest rates are currently hovering at a 22-year high between 5.25% and 5.5%.
Analysts now expect a median of three rate cuts in 2024, but Fed officials have indicated that no cuts will occur in March.
The central bank needs to be convinced that inflation is indeed on track to its 2% target before it begins cutting rates.
This approach echoes what the Federal Reserve has been communicating throughout the last year: relying on a data-driven approach to adjust its moves and ensure it takes appropriate actions to engineer the desired “soft landing.” It is consistent with what is being done.
Meanwhile, other encouraging signals emerged.
Core inflation fell to 1.9% on a six-month annualized basis, below the central bank’s target of 2%.
This could suggest that interest rate cuts could come sooner than expected.
BYD (Hong Kong Stock Exchange: 1211)
Chinese automaker BYD posted impressive sales numbers in the fourth quarter of 2023.
The electric car maker sold 526,409 fully electric vehicles (EVs), outpacing its rivals. Tesla’s (NASDAQ: TSLA) 484,000 in the quarter.
BYD’s latest sales numbers help the company maintain its pole position within the electric vehicle industry.
BYD’s total sales in 2023 were 3.01 million units, exceeding Tesla’s cumulative deliveries of 1.81 million units.
Aggressive year-end discounts contributed to the increase in sales.
Tesla also started a price war in 2022 that was extended to 2023, but despite the discounts it still lags BYD in unit sales.
BYD’s full-year sales are roughly the same as the company’s EV and hybrid vehicle sales over the past five years, which is a staggering number.
Despite record sales, BYD’s stock price fell nearly 24% last year.
By contrast, rival Tesla’s stock soared 130% in 2023.
BYD established its first production line in Hungary and continued its global expansion.
The plant, located in the city of Szeged, will produce EVs and plug-in hybrids that will serve the European market and help create thousands of jobs.
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Disclosure: Royston Yang owns no shares in any of the companies mentioned.