ADDX Go Market Morning Wrap - 23 October

 

Market Key Focus

US Market

- Markets

Among the three major U.S. stock indexes, only the Nasdaq rose slightly.

The S&P 500 closed down 2.78 points, or 0.05%, at 5,851.20 points.

The Dow Jones Industrial Average, which is closely related to the economic cycle, closed down 6.71 points, or 0.02%, at 42,924.89 points.

The Nasdaq, which is dominated by technology stocks, closed up 33.12 points, or 0.18%, at 18,573.13 points. The Nasdaq 100 closed up 0.11%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 0.24%.

The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed down 0.37%.

The VIX index of fear closed down 0.93% at 18.20.

 

- Stocks

Industrial and materials sectors lagged behind, with the former affected by GE Aerospace's 9.05% drop and Lockheed Martin's 6.12% drop, and the latter affected by Sherwin-Williams' (SHW) 5.34% drop.

 

- Treasury

The yield on the benchmark 10-year U.S. Treasury bond rose 0.21 basis points to 4.1977%.

The yield on the two-year U.S. Treasury bond fell 0.36 basis points to 4.0282%.

 

- FX

The Fed's rate cut path may slow down, the US election triggered risk aversion, and Trump's trade warmed up. After three consecutive weeks of gains, the US dollar index rose for the second consecutive day, hitting a two-and-a-half-month high.

 

Asian Market

- Markets

The Nikkei index closed down more than 1%, and South Korea's Kospi index fell more than 1% at one point. Hyundai Motor India fell nearly 6% on its first day of listing today.

 

- Stocks

Chinese stocks rose more than 2% and then closed up nearly 1%, outperforming the market throughout the day. PDD, which was increased by BlackRock, rose more than 8% at one point, while Tiger Securities fell more than 13%.

 

- FX

The Japanese yen fell below 151 to its lowest level since the end of July.

The offshore RMB fell to 7.14 yuan in the midday trading of the US stock market and recovered its losses in the late trading.

 

European Market

- Markets

The European STOXX 600 index closed down 0.21% at 520.40 points. The Eurozone STOXX 50 index closed down 0.04%, and the FTSE Euro Stoxx 300 index closed down 0.21%.

The German DAX 30 index closed down 0.20%, the French CAC 40 index closed down 0.01%, the Dutch AEX index closed down 0.11%, the Italian FTSE MIB index closed down 0.64%, and the British FTSE 100 index closed down 0.14%.

 

- Stocks

Most sectors fell, with travel and leisure and technology leading the gains, up 1% and 0.8% respectively, while utilities and telecommunications led the declines, down 1.5% and 1% respectively. European luxury stocks almost all closed higher, with Burberry up 2.78%, L'Oreal, Kering, LVMH (whose third quarter report was not good), and Pernod Ricard also up 0.98%-0.71%, Richemont up 0.24%, and Hermès down 0.24%.

 

- Treasury

The euro zone's benchmark 10-year German bond yield fell 2.6 basis points to 2.183%, down 8.2 basis points for the week.

The two-year German bond yield fell 3.8 basis points to 2.108%, down 12.7 basis points for the week, hitting a new low after the European Central Bank cut interest rates on Thursday.

FX

The euro rose by 0.3% against the US dollar and stabilized above 1.08, breaking away from the lowest level since August 2, ending a seven-day losing streak, and falling by about 0.7% for the week.

The pound rose by 0.5% against the US dollar and stabilized above 1.30, continuing to break away from a two-month low, and fell by 0.2% for the week.

 

Cryptocurrency Market

Options trading market pricing shows that no matter who wins the US presidential election, it will be good for Bitcoin, and the price is expected to hit a record high of $80,000 by the end of November.

According to data from Deribit, the largest cryptocurrency options exchange, as the US election approaches, the ratio of Bitcoin put options to call options is on a downward trend, and more traders are buying call options instead of put options. Among them, the open interest of call options expiring on November 29 is mainly concentrated at a strike price of $80,000.

 

Macro

1. ECB President Christine Lagarde said that recent inflation data is "relatively reassuring" but still needs to be vigilant against the risk of a rebound. The ECB has decided to cut interest rates, but the specific extent and speed of the cut have not yet been determined, and the possibility of a larger cut has not been ruled out.
2. As uncertainty in the U.S. election and expectations of interest rate cuts have cooled, the U.S. dollar continued to rise to a two-and-a-half-month high, the 10-year U.S. Treasury yield hovered at its highest level since the end of July, and spot gold approached $2,750, a record high.

 

Earnings For Today

 

 

 

Market Events

 

Stocks to Focus

1. McDonald's fell more than 9% after the market closed. Serious E. coli infections occurred in McDonald's in many places in the United States, which was related to an onion supplier.
2. Starbucks' third-quarter revenue and profit were lower than expected, and the company has temporarily withheld its fourth-quarter guidance. Its stock price fell by about 7% after the market closed.
3. Indicators of the health of non-AI chip companies: Texas Instruments' third-quarter report was slightly better than expected, but its fourth-quarter guidance was lower than expected. Its stock price fell more than 2% after the market closed, then rose 4%.
4. L'Oréal, a leader in beauty consumption, had sales in the third quarter that were lower than market expectations, and its ADR closed down 3.92% in the US.