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Cathy Wood shoves Tesla as stocks collapse due to missed deliveries

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(Bloomberg) — Cathy Wood has bought shares of Tesla Inc. It fell the most in four months after the electric car maker’s third-quarter sales missed expectations.

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Funds backed by Wood’s Ark Investment Management LLC bought 132,213 shares of Elon Musk on Monday, the company’s first purchase of Tesla since mid-June, according to data compiled by Bloomberg.

Tesla fell 8.6% on Monday, the biggest drop since June 3, as charging issues and chip shortages affected deliveries. It was also the worst performer in the S&P 500, which had its best day since July 27. The stock is down 31% this year, underperforming the US benchmark.

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This is Wood’s second purchase of Tesla in 2022, a year after selling its stake. The first was in June, days after Tesla lost its spot as the crown jewel in its flagship fund, a position it had held for nearly four and a half years.

The recent purchases add to the evidence that Cathy Wood is in a buying binge again.

Bloomberg data showed that Ark sold Tesla shares for at least five consecutive quarters starting at the end of June.

The purchases were made on Monday by the Ark Innovation ETF and the Ark Next Generation Internet ETF.

Ark’s main ETF is down 60% in 2022 as historic tightening by the Federal Reserve and global recession fears roil growth stocks.

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Dollar falls as easing of restrictions in China boosts risk sentiment By Reuters

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© Reuters. FILE PHOTO: One hundred US dollar banknotes are seen in this illustration taken in Seoul on February 7, 2011. REUTERS/Lee Jae-won/File Photo

SINGAPORE (Reuters) – The dollar fell broadly on Monday after a rough week, weakening below 7 yuan as sentiment towards riskier non-dollar assets improved after signs of China easing some coronavirus-related restrictions.

More Chinese cities, including financial hub Shanghai and Urumqi in the far west, announced easing coronavirus restrictions over the weekend as China tries to soften its stance on COVID-19 restrictions in the wake of unprecedented protests against the policy.

“They may seem like small steps, but nonetheless they are a strong sign that China is taking measured steps toward reopening,” said Christopher Wong, currency analyst at OCBC.

China is preparing to announce soon easing nationwide testing requirements, as well as allowing positive cases and close contacts to isolate at home under certain conditions, people familiar with the matter told Reuters last week.

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The dollar fell below 7.0 yuan in foreign trade, while it jumped about 1.4% to 6.9507 on Monday morning, the strongest level since Sept. 13.

The euro, which measures the currency against six major peers including the yen and the euro, fell 0.18% to 104.28, its lowest since June 28.

The index fell 1.4% last week, capping a 5% decline for November, its worst month since 2010, on mounting expectations that the Federal Reserve is ready to scale back interest rate hikes after four consecutive 75-bps. Points increase.

Investors’ focus will be on US consumer price inflation data due on December 13, a day before the Federal Reserve wraps up its two-day policy meeting.

The US central bank is expected to raise interest rates by an additional 50 basis points at the meeting. Fed fund futures traders are now pricing the Fed’s benchmark rate to a peak of 4.92% in May.

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OCBC’s Wong said some degree of caution is still warranted because the Fed is not done tightening. “They’re still tightening up, it’s just that it’s going to be in baby steps.”

Traders appeared to be looking beyond the stronger-than-expected US jobs report for November on Friday after some Federal Reserve speakers calmed market concerns.

“We’ve blown past the US payrolls with a temporary jolt to risk markets,” said Chris Weston, head of research at Pepperstone, noting that the data supports the “soft landing” argument and is unlikely to change the Fed’s course.

Meanwhile, the Japanese yen was down 0.04% against the dollar at 134.37 per dollar, after rising 3.5% last week, off October’s low of 151.94.

The euro rose 0.38% to $1.0578, after rising 1.3% last week. It had earlier touched its highest level in more than five months at $1.05835.

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The pound rose to $1.23450, the highest level since June 17, and was last trading at $1.2339, up 0.42%.

The Australian dollar rose 0.75% to $0.684, while it rose 0.31% to $0.643.

================================================== == ======

The currency bid prices are at 0520 GMT

Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid

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previous change

session

EUR/USD 1.0580 $1.0541 +0.37% -6.94% +1.0584 +1.0512

USD/JPY 134.3800 134.2950 +0.00% +16.75% +134.7600 +134.2800

EUR/JPY 142.18 141.53 +0.46% +9.10% +142.2200 +141.5700

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USD/CHF 0.9349 0.9368 -0.19% +2.51% +0.9393 +0.9344

GBP/USD 1.2337 1.2293 +0.37% -8.76% +1.2343 +1.2251

USD/CAD 1.3401 1.3474 -0.54% +5.99% +1.3473 +1.3386

AUD/USD 0.6841 0.6794 +0.63% -5.94% +0.6851 +0.6764

NZ 0.6429 0.6413 +0.27% -6.06% +0.6442 +0.6367

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Tokyo forex market information from Bank of Japan

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The Dow shines as tech stocks squeeze higher on the Nasdaq

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The Dow Jones Industrial Average is outperforming the broader S&P 500 to an extent not seen in nearly a century.

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Saudi Crown Prince invests in Credit Suisse unit, Wall Street Journal reports

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(Bloomberg) — Saudi Crown Prince Mohammed bin Salman is preparing to invest in the investment bank of Credit Suisse Group AG, The Wall Street Journal reported.

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The newspaper said, citing people familiar with the matter, that Prince Mohammed may invest about $500 million in the lender’s CS First Boston. Other investors could include former Barclays plc CEO Bob Diamond Atlas Merchant Capital, according to the report.

Credit Suisse Chairman Axel Lehmann said last week that the bank had received several additional commitments from investors regarding First Boston’s investment bank plan.

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Prince Mohammed is encouraging Saudi Arabia’s largest companies to expand globally, raising the country’s image as a serious investor and diversifying its economy. The kingdom is already backing Credit Suisse, with the National Bank of Saudi Arabia taking a 9.9% stake in the troubled Swiss bank.

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