Stock market news are aplenty and the stock market is affected by news. Some news are important, some news are not.
Some news can affect businesses more, whereas some news are just tabloids.
As investors, it is our jobs to separate news from noise by interpreting stock market news with a neutral and critical sense of mind.
Stocks are affected by the underlying business. Business are affected by economics and politics. And the cycle goes round.
Here are important market news of the 2nd week of June, 9th June – 15th June.
1st Stock Market News – Beyond Meat and their IPO
Beyond Meat IPO on May 2nd at $25 per share. It has since went up a crazy 605% since then, giving them a market capitalisation of $9.1 billion.
Beyond Meat, with it’s concentration on plant-based burgers, actually beat their earnings in a short time after IPO. Would that be a new industry? Did Beyond Meat expand their market share by $8 billion in a short 6 weeks?
2nd Stock Market News –Hong Kong Extradition Law Protest
One important news was the Hong Kong protest that happened on 9th June 2019. Close to the 30th anniversary of the Tiananmen Square incident, Hong Kong went to the streets to protest against an extradition law that would allow criminals to be extradited to China. US has since expressed their regret on the extradition law, ahead of the G20 summit happening on the 28th and 29th June 2019.
3rd Stock Market News – Hong Kong Riot
On 12th June 2019, demonstration against the proposed extradition law occurred outside the Legislation Building. The Legislation Building was poised to debate on the controversial extradition bill. However, protest turned into a riot, in which at least 72 people were hospitalised.
An estimated 1 million protestors attended the first protest, together with the riot, the Hang Seng index was not heavily affected, losing 100 odd points only.
4th Stock Market News – Temasek’s Astrea V Bonds
Following the successful launch of the Astrea IV bonds last year, Temasek’s subsidiary, The Azalea Group, is offering a new 3.85% bond, the Astrea V bonds.
The bond is backed by 38 diversified equity funds investing in companies around the world in different industries.
5th Stock Market News – US to delist Chinese Companies
In a latest bill by the US lawmakers, Chinese companies could be made to delist from the US. Companies like Alibaba, JD.com, Baidu and so on are listed on the US.
One of the bill’s sponsor Marco Rubio said, “Beijing should no longer be allowed to shield U.S.-listed Chinese companies from complying with American laws and regulations for financial transparency and accountability. If China-based companies want to list on stock exchanges or access capital markets in the U.S., we should make them comply with American laws.”
6th Stock Market News – Alibaba files for Hong Kong Listing
In otherwise separate news, Alibaba Group Holdings has filed a listing in Hong Kong, potentially raising more capital from the listing. Companies are allowed to filed listings in several stock exchanges around the world and here are some difference.
7th Stock Market News – Huawei trademarks Hongmeng OS
After the the trade war ban by the US government. Huawei has prepared for a future without Android OS on their mobile phones. UN data have shown that Huawei has applied to trademark their Hongmeng OS in 9 countries and Europe.