After watching its stock market fall to multi-year lows, China finally stepped in to cut its reserve requirements. This will drop by a more meaningful 50 basis points starting on Feb. 5, 2024. The support comes ahead of Chinese New Year, which starts on Feb. 10.
Last year, the seasonally strong spending for the New Year event did not happen. Consumers chose to save money amid watching their savings lose value in real estate. After two straight days of rallying, Alibaba (BABA), Baidu (BIDU), and JD are the stocks to watch.
In fintech, PayPal’s (PYPL) promise of something bid has not yet materialized. Citi analysts placed PYPL stock on a downside 30-day catalyst watch. The firm speculated that PayPal could exit its less profitable contracts. This would hurt its total payment value growth.
Investors should look for the firm to issue its full-year guidance for the year. Though Citi sees it as a negative surprise, shareholders should hope for the best.
In the tech sector, Meta Platforms (META) is today’s winner. The company’s market capitalization is now $1 trillion. Microsoft (MSFT) reached the $3 trillion market cap and is second to Apple (AAPL). All three firms are among the Magnificent 7 stocks that continue to buoy the overall stock indices. Microsoft has the best prospects. It invested earlier than the other two in AI, through ChatGPT maker OpenAI. Amazon (AMZN) and Alphabet (GOOGL) still do not have an answer to GPT.