ADDX Go Market Morning Wrap - 29th Oct

Market Key Focus

US Market

- Markets

The cooling of geopolitical tensions boosted risk sentiment, and U.S. stock indexes rose collectively. The Nasdaq narrowed its gains in late trading but approached its intraday and closing highs. The only sectors that closed lower were technology and energy, the latter affected by the sharp drop in oil prices.

- Stocks

Apple closed up 0.86% after rising more than 1.4% during the session. It released a new iMac computer equipped with the most powerful M4 chip and Apple AI function.

Nvidia closed down 0.72%.

Amazon closed up 0.3%.

Microsoft closed down 0.36%.

Meta closed up 0.86%. It was reported that Meta is developing an AI search engine to try to get rid of its dependence on Google Search and Microsoft Bing.

Google A closed up 0.88%. It had a short-term dive of nearly 0.8% during the session due to reports that Meta was developing an AI search engine. In addition, the company launched AI Overviews in more than 100 countries (regions). Tesla rose 1.6% and then closed down 2.48%.

- Treasury

As the "Trump deal" heats up, positive economic data lowers expectations of interest rate cuts, and weak demand for U.S. Treasuries causes a rebound in U.S. Treasury yields, with the 10-year Treasury yield rising to a three-month high

Bond yields rise on Trump trade

- FX

The U.S. dollar index rebounded and is not far from a three-month high. It is about to achieve the largest monthly increase in two and a half years. The DXY index rose 0.05% to 104.299 points in late trading.

Asian Market

- Markets

Most Asia-Pacific stock indices rose, with the Nikkei 225 closing up 1.82% and South Korea's Kospi closing up 1.13%.

The China Concept Index once rose by more than 4.8%, significantly outperforming the U.S. stock market.

- Stocks

Photovoltaic stocks performed well. JinkoSolar closed up nearly 18% to lead the way, Canadian Solar closed up nearly 16%, and Daqo New Energy closed up more than 14%. NIO rose more than 10%

FX

The Komeito Party of Japan lost in the House of Representatives election. The market is worried that the Bank of Japan's interest rate hike plan will be blocked. The yen was under pressure and fell to 154, a three-month low.

The offshore RMB fell 108 points against the US dollar in late trading to 7.1449 yuan

European Market

- Markets

European stocks opened higher and then turned down in the afternoon, but eventually closed higher due to the easing of tensions in the Middle East, which boosted risk appetite. The sharp drop in oil prices dragged down oil and gas stocks, which fell 1.4%. Boosted by luxury stocks, the French stock index closed up 0.79%.

- Stocks

Media and construction stocks rose 1.6% and 2% respectively, while oil and gas stocks fell 1.4%. Among the constituent stocks, Dutch home appliance giant Philips' European shares closed down nearly 17%.

- Treasury

The 10-year German bond yield fell 0.7 basis points to 2.285%.

The two-year German bond yield fell 1.7 basis points.

The 10-year British bond yield rose 2.2 basis points to 4.255%, and the two-year British bond yield rose 4.6 basis points.

The 10-year French bond yield fell 3.6 basis points, and the 10-year Italian bond yield fell 2.1 basis points.

- FX

The euro rose 0.18% against the dollar to 1.0814, The pound rose 0.07% against the dollar to 1.2971

Cryptocurrency Market

Bitcoin traders have recently become bullish on Bitcoin prices again, and funds continue to flow into U.S. ETFs. According to a CoinShares report, digital asset investment products saw a net inflow of $910 million last week, bringing the year-to-date inflow to $27 billion, nearly three times the record high in 2021. Ethereum saw an outflow of $35 million last week, the largest outflow of all assets, while Bitcoin attracted most of the funds. Options traders are increasing their bets, predicting that Bitcoin could reach a record high of $80,000 by the end of November regardless of the outcome of the U.S. election.

Bitcoin soars to $70,000

Macro

1. The cooling of geopolitical tensions boosted risk sentiment. Israel did not bomb Iran's oil and nuclear facilities over the weekend, causing oil prices to plummet. In addition, before the US election and the Federal Reserve FOMC meeting next week, Wall Street is closely watching a series of economic data this week for clues on interest rate cuts, including the first reading of third-quarter real GDP on Wednesday, the September core PCE price index on Thursday, and the US October non-farm payrolls on Friday.
2. The Dallas Fed Manufacturing Index was -3.0, the highest in 30 months, exceeding market expectations of -9, adding another sign of economic resilience. The two-year and five-year Treasury auctions were weak, and Treasury yields rose. The focus turned to the U.S. Treasury's financing expectations, which expected to borrow $546 billion in the fourth quarter, less than the $740 billion they had expected. At the same time, it is expected that by the end of December, the cash balance will be $700 billion, less than the previous expectation of $850 billion.
   

Earnings For Today

Market Events

Stocks to Focus

1. Boeing closed down 2.79% as the company launched a $19 billion stock issuance plan to meet liquidity needs and prevent its rating from being downgraded to junk level
2. Trump Media Technology Group (DJT) closed up 21.59%. The stock has risen for five consecutive weeks, and its share price has soared more than 270% since its low in September, with a market value of approximately US$9 billion. The discussion of the stock code DJT on Stocktwits and Reddit has soared, comparable to Tesla and Nvidia. The stock prices of related Phunware and Rumble have also risen by 15% and 11% respectively.
3. The popular online brokerage firm Robinhood closed up 3.03% and entered the US election betting, allowing users to bet on whether Harris or Trump will win the election.
4. Volkswagen fell more than 2.2% at one point and planned to close at least three German factories, lay off tens of thousands of employees, and cut salaries of all employees by 10%.