- NYSE:NIO gained 0.47% during Monday’s trading session.
- Beijing has denied a tiered system that would allow US ADR stocks to prevent being delisted.
- Nio outlines its next steps in its European expansion plans.
UPDATE: NIO stock keeps range-trading on Tuesday, right at the $19 mark at the time of this update (14.30 GMT), one hour after Wall Street market open. The Chinese EV automaker has seemingly halted the losses from last week finding support below $20 as reports about US and China nearing a deal on avoiding ADR stock delisting surfaced in financial media outlets. NIO had enjoyed a comeback in May and June as EV stocks finally found some legs to rally after a dismal first four months of the year. The electric vehicle sector is a high-growth stock segment of the market and current risk-off dominance, with inflation and recession dominating market talk, is limiting gains for these companies with a much brighter future than present order books.
NYSE:NIO kicked the week off on a flat note, although the stock recovered its earlier losses by the time the markets closed for the day. On Monday, shares of NIO added 0.47% and closed the trading session at $19.33. Stocks were mixed to start a pivotal week for the markets ahead of another Fed rate hike and earnings from big tech companies. Overall, the Dow Jones managed to gain 90 basis points, the S&P 500 rose by 0.13%, while the NASDAQ posted a 0.43% loss for the session.
Stay up to speed with hot stocks' news!
A report from over the weekend in the Financial Times has suggested that Beijing and the US are close to agreeing on a three-tiered system for US-listed ADR stocks. This system would separate companies by the sensitivity of their data, and would allow stocks to avoid delisting if they do not accommodate all of the regulatory auditing rules of the United States. Unfortunately on Monday, Chinese regulators denied the plan which led to investors wondering if Nio would still be in danger of being delisted. Shares were down by nearly 3.0% during morning trading, but recovered most of those losses by the closing bell.
NIO stock forecast
In other news, Nio is marching forward with its European expansion plans, and has revealed that it is working on its impending launch in Germany. The EV maker is building Nio Houses in both Munich and Rotterdam in the Netherlands, which is one of the next markets on the list. After Holland, it is believed that Denmark and Sweden are next up, as Nio aggressively pushes its ET7 sedan across the continent.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 inflation forecast, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.