Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Shares of Tesla jumped on Monday, after the company released delivery figures for the second quarter.
What happened: The EV maker’s latest production and delivery numbers surpassed market expectations.
Some other major EV stocks also rose sharply on Monday on strong deliveries for June and the second quarter.
Why it matters: The overall automobile industry has been under pressure due to an uncertain economic environment impacting consumer sentiment. Automakers have been following an aggressive pricing strategy amid intensifying competition amid lower demand.
Tesla has made steep price cuts so far this year, which impacted its margins in the first quarter. The EV maker staged a recovery in the second quarter and reported strong numbers despite demand concerns.
Tesla reported 466,140 deliveries for the quarter, ahead of market expectations of 445,000, representing a surge of over 10% on quarter and a 80% jump year-over-year.
The company produced 479,700 vehicles during the quarter, topping forecasts of 456,617 units, marking a year-over-year growth of 88%.
Tesla delivered 19,225 Model S/X vehicles last quarter, above estimates of 14,606, and delivered 446,915 Model 3/Y vehicles, surpassing expectations of 437,386.
Several analysts, including Goldman Sachs, Deutsche Bank, Canaccord Genuity, JP Morgan and
Truist Securities, raised their price targets on the Elon Musk-led company on Monday.
Other EV makers also recorded strong gains on Monday, with Rivian Automotive adding over 17%, after reporting strong delivery numbers. Shares of Lucid Group climbed over 7%.
Shares of China’s EV makers also moved higher, with BYD gaining more than 3% in Hong Kong after the company said June sales almost doubled from the year ago quarter. US-listed shares of China’s EV makers NIO, Li Auto and XPeng rose after the companies reported upbeat deliveries.
How shares responded: Tesla’s shares gained 6.9% to close at $279.82 on Monday. The stock has added around 29% over the past month.
What to watch: Investors will watch the company’s second-quarter results, scheduled for release on July 19. Analysts expect Tesla to report earnings of 79 cents per share on revenues of $24.08 billion, representing 42.2% year-over-year growth.
Context: The GBP/USD forex pair fell slightly on the first trading session of July with a recovery in the US dollar.
Details: Forex traders remained cautious amid expectations of further rate hikes from the Bank of England.
The GBP/USD forex pair had added more than 0.6% on Friday, following softer-than-expected inflation data from the US.
The sterling was among the top performing currencies versus the greenback during the first half of 2023, adding around 4.8%, due to expectations of the BoE raising interest rates and keeping them higher for longer.
Experts believe UK’s interest rates may not peak until mid-2024 and expect the central bank to increase rates to as much as 6.2%. A month back, markets were expecting rates to peak at around 5.3% by the end of 2023.
On the economic data front, the S&P Global/CIPS manufacturing PMI for the UK was revised higher to a reading of 46.5 for June, higher than the preliminary reading of 46.2. This was still lower than May’s level of 47.1. The latest manufacturing reading was the lowest in six months, and signalled a contraction in manufacturing activity for 11 consecutive months.
Strength in the greenback also exerted pressure on the GBP/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained 0.08% to 102.99 on Monday.
The GBP/USD pair fell slightly to 1.2692 during Monday’s session. The yield on the 10-year UK gilt climbed above 4.4%, its highest level since June 19. The FTSE 100 index erased gains recorded earlier in the session to close slightly lower at 7,527.26 on Monday.
What are expectations: With no major economic releases from the UK on Tuesday, investors will monitor global economic factors, which could provide some direction to the sterling. Data on UK’s new car sales, services PMI and composite PMI, due to be released on Wednesday, will also remain in focus.
Other Markets: US trading indices closed slightly higher on Monday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.03%, 0.12% and 0.19%, respectively. US equity markets will remain closed today for the 4th of July holiday.
Türkiye President Recep Tayyip Erdogan said that the country will oppose Sweden joining NATO unless it stops sheltering groups Ankara considers as terrorists. The news sent the safe-haven US dollar index slightly higher this morning.
Sri Lanka’s trade gap widened to $447 million in May, from $403 million in the year-ago month. However, the country’s trade deficit shrinking to $1.9 billion in the first five months of the year from $3.5 billion in the year-earlier period lent support to the LKR/USD forex pair.
South Korea’s consumer price index rose 2.7% year-over-year in June, following a 3.3% increase a month ago. This represented the slowest pace since September 2021 and sent the KRW/USD pair higher in forex trading this morning.
Brazil’s trade surplus widened to of $10.6 billion in June, from $8.8 billion in the year-ago month. However, exports contracted by 8.1% year-over-year to $30.1 billion, exerting pressure on the BRL/USD forex pair.
US construction spending rose by 0.9% to an annual rate of $1,925.6 billion in May, which sent the Dow Jones index slightly higher on Monday.
Germany’s balance of trade and passenger car registrations, Spain’s unemployment change and number of foreign tourist arrivals, Brazil’s IPC-Fipe inflation and industrial production, Canada’s manufacturing PMI, Argentina’s tax revenue, as well as Turkey’s total vehicle sales.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
