Tesla deliveries, China economic data, Fed minutes: Top stories
China's services sector experienced a decrease in PMI in June, according to the latest economic data. The minutes from the Federal Reserve's June meeting are anticipated to be made public sometime this week. Tesla's production and deliveries have shown impressive figures, particularly with a nearly 20% increase in deliveries from their Shanghai plant. Yahoo Finance Live provides an in-depth analysis of the most significant stories of the day.
BRAD SMITH: Let me outline three essential elements to kickstart your morning. Once again, the global market faces the challenge of disappointing data originating from the second largest economy. This poses a potential obstacle for investors at the beginning of today. Particularly, China's service sectors have experienced a significant decline in the Purchasing Managers' Index (PMI), dropping to 52.9 from the previous 57.1 in May.
This is the lowest it has been since January and significantly lower than what was predicted. Following the harsh lockdowns caused by the COVID-19 pandemic, China's government has been striving to increase internal consumption. The Taishin survey mainly targets smaller businesses, thus offering an alternative viewpoint compared to the official services PMI.
Additionally, there are several important pieces of information scheduled for release this week here in the United States, including Friday's employment report. This report will grab the attention as the Federal Reserve, which bases its decisions on data, anticipates raising interest rates in the upcoming months. Prior to that, the minutes from the central bank's previous meeting will be closely monitored.
All members of the Federal Reserve unanimously agreed to halt their 15-month endeavor of increasing interest rates. Consequently, investors will closely observe the committee for any indications of disagreement among them. According to market trends, there is an 86% probability that the Fed will increase rates by an additional 0.25 percentage points in July.
And supplying the products. Tesla's seemingly unstoppable surge receiving a boost from impressive manufacturing and shipment figures. The overall shipment count for the second quarter reaching 466,140. The overall production tally for the same period standing slightly below 480,000. Both of these figures surpassing projections.
The dominant player in the electric vehicle industry does not disclose official sales figures, therefore, the number of deliveries is regarded as a crucial indicator of the company's success. In this case, China could be considered the major triumph. The amount of Tesla vehicles delivered from their factory in Shanghai increased by nearly 20% compared to the previous year.
