Tesla Reported Fewer Car Deliveries in Q4 than Expected

Major U.S. stock indexes rebounded during the late premarket session this European afternoon with investors bracing for the Federal Reserve's minutes release, scheduled for tomorrow, as they will try to search for hints regarding future monetary policy moves. At the time of writing, contracts on the S&P 500 and Nasdaq Composite rose between 0.5% and 0.7%.

Meanwhile, this week will also be marked by a plethora of economic data reports, with the most prominent being the Job Openings and Labor Turnover Survey (JOLTS), alongside the Nonfarm payrolls. Today, the traders will focus on the country's construction spending and manufacturing PMI.

Most analysts stick by their recession call for 2023. After gloomy predictions made by the International Monetary Fund, the New York Fed’s Dudley, Goldman Sachs and J.P. Morgan, it was now the turn for Wells Fargo (WFC) to voice its expectations that the U.S. economy will to go into a recession in the first half of 2023. Continued global economic slowdown prevails in various mainstream and underground forecasts, as the past year’s monetary policy tightening and money growth slowdown show lagging effect.

Corporatewise, Tesla (TSLA) reported its Q4 2022 operating results, according to which the EV maker delivered fewer vehicles than expected despite offering hefty incentives in its biggest markets, reinforcing demand concerns that contributed to the worst month and year for the electric-car maker’s stock since its 2010 initial public offering.

Elsewhere, European stocks gained, led by travel, tech, consumer product, leisure and financial sectors, while utilities and personal care lagged behind, for a second day after the worst annual decline since 2018 amid optimism that China’s Covid infections may have peaked (read below). At the time of writing, the British FTSE is edging higher by 1.27%, while German stocks advanced by 0.62%, and France’s CAC 40 rebounded by 0.46%. Uncoincidentally, the euro slid further down against the U.S. dollar to a 3-week low at $1.05422 amid the publication of a new batch of economic data and in anticipation of crucial reports on inflation during the week. Earlier, the German Federal Employment Agency said the unemployment rate in Germany came in at 5.5% in December 2022, slightly down from November's 5.6%. The data comes hours before the publication of the latest German CPI report.

Asian benchmarks overcame earlier doldrums to advance on the first trading day of the new year as optimism grew that Covid infections may have peaked in some parts of the nation, despite Chinese tourists have been heavily tested positive for the virus at several international top destinations. The Hang Seng China Enterprises Index, which tracks Chinese companies listed in Hong Kong, closed 1.9% higher. On the mainland, the benchmark Shanghai Composite Index climbed 0.88%. Stocks in Hong Kong also rallied as a recovery in subway traffic also hinted at Covid cases being in a steady decline. U.S.-listed Chinese companies including Alibaba Group Holding (BABA), Baidu (BIDU) and electric-vehicle maker Nio (NIO) rose profoundly.