ADDX Go Market Wrap- 2024 Sep 10

Market Key Focus

Equities: Buy the dip in U.S. stocks after last week's sharp sell-off

Crypto: Bitcoin ETF has posted their longest run of daily net outflows since listing at the start of the year

US Treasury Bonds: The two-year Treasury yield, which is more sensitive to monetary policy, rose 2.67 basis points to 3.6729%.

Euro Bonds: The euro zone's benchmark 10-year German bond yield fell 0.4 basis points

Currency: The dollar index DXY, which measures the dollar against a basket of six major currencies, rose 0.44%.

Gold: COMEX December gold futures rose 0.43% in late trading

U.S. Oil: WTI October crude oil futures closed up at $1.04

Smart Money Tracking

ARKK Innovation Fund

- 69,041 Tesla has been added, an increase of 1.99%from the previous period, and currently accounting for 14.89%of the total positioning proportion

- The ROKU INC was increased by 168,609 stocks, an increase of 1.99% over the previous period, and the current proportion of total holdings was 10.53%.

- The company added 44,100 shares of Coinbase Global, Inc., an increase of 1.99% from the previous period, and currently accounts for 6.6% of the total holdings.

Stocks to Focus

- Alibaba was officially included in the Hong Kong Stock Connect and took effect on September 10

- Boeing and the union reached a preliminary labour agreement

- HSBC considers consolidated commercial banks and investment banks to reduce costs

Market events

- NFIB Business Optimism Idx

Macros

- The market is closely watching the US presidential debate on Tuesday, as well as the release of US CPI on Wednesday and PPI data on Thursday. The CPI data in particular may have an important impact on the interest rate cut decision before the FOMC meeting because although the market generally expects a 25 basis point rate cut, the specific extent of the cut has not yet been determined.

- "Global investors may be avoiding risk and cashing out," said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute. He believes investors may have decided that concerns about the U.S. economy and the possibility of a sharp rate cut can't be ignored given the weaker-than-expected nonfarm payrolls report.

Earnings

- Before Open: Academy Sports + Outdoors, Cognyte, Comerica, Bioceres Crop Solutions, Dynagas LNG Partners

- After Close: GameStop, Dave & Buster's, Petco, Cantaloupe, Mama's Creations, Innovaage, Evolution Petroleum

US Equities

The S&P 500 closed up 62.63 points, or 1.16%, at 5471.05. The Dow Jones Industrial Average, which is closely related to the economic cycle, closed up 484.18 points, or 1.20%, at 40829.59. The Nasdaq, which is dominated by technology stocks, closed up 193.77 points, or 1.16%, at 16884.60. The Nasdaq 100 closed up 1.3%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 1.11%. The Russell 2000 Index, which is more sensitive to the economic cycle, closed up 0.30%. The VIX index of fear closed down 13.09% at 19.45.

Crypto Market Insight

While Q3 has seen positive inflows of $2.5B into spot Bitcoin ETFs, the trend has been uneven. The past 7 trading days have shown consistent outflows totalling almost $1.0B, likely contributing to downward price pressure. It's worth noting that these outflows coincide with a broader sell-off in equity markets.

This shift in ETF flows could indicate changing investor sentiment.

The initial excitement following the ETF launches in Q1 and Q2 seems to have cooled, giving way to a more cautious approach.