ADDX Go Market Morning Wrap - Oct 14th 2024

 

 

Market Key Focus

US Market

PPI

The PPI inflation in the United States in September was the same as last month, indicating that inflation has further cooled down, easing the anxiety caused by CPI and supporting the Fed's interest rate cut next month

Stocks

The S&P and Dow Jones hit new highs, with the S&P closing above 5,800 for the first time and the Dow up nearly 1%. After the U.S. earnings season opened, the bank index rose 3%, and the U.S. stock index rose more than 1% for the week, with the S&P rising for five consecutive weeks. Tesla fell nearly 9% and fell nearly 13% for the week. Nvidia turned to decline on Friday, but rose nearly 8% for the week

Treasury

The 10-year Treasury yield rose 10 basis points for the week. The dollar index fell slightly on Friday, breaking away from an eight-week high, and rose 0.3% for the week

 

China Market

Stocks

The China Concept Index fell 1.9% and then closed up nearly 1%, but fell nearly 7% for the whole week. The FTSE A50 futures rose by more than 3% in the night session

Fiscal Stimulus

The plan to increase the debt limit on a large scale at one time is the strongest measure to support debt reduction in recent years; The central government still has a large room for debt and deficit increase. It means clear signal that there is a change in the direction of fiscal thinking and the central government has increased leverage. The fiscal and monetary linkages are loose, which is a liquidity feast for the market

FX

The offshore RMB rose by more than 100 points, breaking through 7.09 yuan.

 

Macro

1. Oil prices fell slightly on Friday, but rose for two consecutive weeks. Gold rose by more than 1%, rising for two consecutive days, and rose slightly for the whole week. Bitcoin rose above $63,000, a sharp rebound of $4,000 from Thursday's low.
2. As the U.S. election approaches, the market focus begins to shift from macroeconomic data to the political situation. Willer's team expects investors to reduce positions that may be damaged by Trump's victory and may buy some hedging tools against such an outcome.

 

Earnings For Today

Before Open

 

After Close

KARO

EPS forecast 6.86

Revenue forecast 1.1B

 

Market Events

 

Stocks to Focus

1. Goldman Sachs revisits the "Four Phases of AI Trading": Phase 2 "AI infrastructure" is nearly mature, and Phase 3 does not focus on applications. As the most obvious AI beneficiary, Nvidia belongs to the "First Phase", "Second Phase" includes companies focused on AI infrastructure, "Third Phase" focuses on companies with the potential to realize AI monetization by generating incremental revenue, and "Fourth Phase" is mainly companies with the greatest potential profit increase in widespread AI adoption and productivity improvement.
2. Samsung Electronics' stock price fell by more than 20% in 23 trading days, and its market value evaporated by nearly 90 trillion won. Data released by the Korea Stock Exchange showed that from the 3rd of last month to the 11th of this month, foreign investors sold Samsung Electronics for 23 consecutive trading days, selling a total of 10.6593 trillion won.