NIO Stock Forecast: Nio Inc extends decline following weak Chinese tech earnings

NYSE:NIO fell by 3.18% during Thursday’s trading session.
Weaker than expected earnings from Chinese big tech has sent ADRs reeling.
Nio branches out and delivers a fleet of electric police cars in Qingdao.

Stocks Reporter FXStreet

NYSE:NIO was a part of a larger group of Chinese ADR stocks that were dragged down by disappointing tech earnings in China. The Hang Seng index in Hong Kong fell by 1.3% during the day, marking the second straight negative session. Shares of Nio fell by 3.18% in sympathy and closed the trading day at $38.41. With the drop, Nio is on the verge of losing its key 50-day moving average, which would present a bearish short-term downtrend. Falling alongside Nio on Thursday were domestic rivals XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) which were down 2.13% and 3.73% respectively during the session.

Stay up to speed with hot stocks' news!

The major news for Chinese ADRs on Thursday was the weaker than expected earnings report from Alibaba (NYSE:BABA). Earnings tumbled for the eCommerce giant, a result that was directly attributed to the ongoing regulatory crackdown by the Chinese government. Alibaba also slashed guidance for the rest of the year, lowering its expected revenue growth by 5-10%. Alibaba's rival JD.Com (NASDAQ:JD) saw its shares rise by 5.95% stateside as the company managed to top estimates and grow its annual active customers by 25% year over year.

NIO stock price

In some interesting news on Thursday, Nio has established a potential new customer base as it delivered its first eight electric vehicles to the Qingdao Police force. In July, Nio had signed a new agreement to make it easier for government agencies in China to acquire its vehicles, so we could see more of these deals made in the future. Nio also recently established a battery swap station in Qingdao, as well as a 180 kw charging hub.

Author

Stocks Reporter

FXStreet

AUD/USD sticks to neutral bias above 0.7100 amid bullish USD undertone

AUD/USD holds steady above 0.7100 during the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. Adding to this, the Fed's hawkish outlook supports the buck. However, bets on another RBA rate hike underpin the Aussie ahead of Governor Bullock's speech and Australian jobs data on Tuesday and Thursday, respectively.

USD/JPY steadies around 157.00 as BoJ's dovish rate hike undermines JPY

USD/JPY edges up at the start of a new week, stalling its retracement slide from 158.00, or a two-week top touched in reaction to the BoJ's dovish rate hike on Friday. Escalating tensions in the Middle East, along with bets for another Fed rate hike this year, lend some support to the US Dollar and the currency pair. Bulls, however, seem hesitant and await further geopolitical developments.

Gold remains depressed below $4,400 as Fed hike bets and Mideast jitters support USD

Gold struggles to capitalize on its recovery gains registered over the past two days and attracts fresh sellers at the start of a new week. The risk of a broader Middle East conflict helps the safe-haven US Dollar stall Friday's retracement slide from the highest level since late July. Moreover, the Fed's hawkish outlook supports the buck and keeps the non-yielding bullion depressed below $4,400.

The week ahead: Hawkish Fed sets the tone for flash PMIs, SNB decides on policy

The US dollar outperformed all its major peers this week, putting it on the front foot in anticipation of a hawkish Fed before Wednesday, and accelerating its advance after the central bank satisfied the hawkish market bets.

CFTC Report: Positioning turns more defensive as Yen longs build

The week in one sentence: Yen positioning surged into a sizeable net long in the week to September 15, while Oil buying accompanied a sharp price increase. CAD shorts also retreated, but Gold exposure remained crowded despite a lower price. Euro and Australian Dollar positioning weakened alongside softer currencies.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.