ADDX Go Market Morning Wrap - 31st Oct

 

Market Key Focus

US Market

- Markets

As the market focused on the earnings season, U.S. stocks rose in early trading, but then took a sharp turn for the worse and eventually fell. The Nasdaq led the decline after hitting an intraday high.

 

- Stocks

Meta closed down 0.25% and fell more than 3% after the market closed. The overall third quarter report was barely better than expected, and the upper limit of the fourth quarter capital expenditure guidance range was raised.

Google A closed up 2.82%, with Q3 cloud revenue increasing by 35%, and total revenue unexpectedly accelerating.

“AI leader” Microsoft closed up 0.13%, with a record high profit in the third quarter, Azure cloud revenue increased by more than 30%, and fell nearly 4% after the market closed.

 

- Treasury

The market weighed the mixed economic data and waited for the October non-farm payrolls data to be released on Friday. The 10-year U.S. Treasury yield turned higher in late trading and hovered near a three-month high, with short-term bond yields leading the gains.

 

- FX

The US dollar index fell more than 0.2% and once fell below 104, breaking away from the three-month high set yesterday.

 

Asian Market

- Markets

Most Asia-Pacific stock markets fell, with the Nikkei 225 index closing up 0.96% and South Korea's Kospi index closing down 0.92%.

The Nasdaq Golden Dragon China Index fell 2.2% before closing down 0.96%. The A50 futures index closed up 0.29% at 13,330.000 points after a continuous overnight session.

 

- FX

The Japanese yen turned positive in the early trading of the US stock market and fell slightly in the late trading. It was still less than 153 against the US dollar.

The offshore RMB rose 173 points and exceeded 7.13 yuan in the late trading.

 

European Market

- Markets

Dragged down by the general decline of technology stocks, European stocks opened lower and closed down more than 1.2%, and many national stock indexes closed down more than 1%.

The UK FTSE 100 index closed down 0.73%, and briefly turned positive after the release of the UK budget report.

 

- Stocks

Due to the double blow of Eli Lilly's downward guidance and the results of the US drug regulatory authorities' investigation, Novo Nordisk once fell about 5.7% to a nine-month low, but reversed the trend in the late trading and closed up 0.35%.

Luxury goods stocks mostly fell, Pernod Ricard closed down 4.35%, Remy Cointreau fell 3.57%, and Burberry rose 1.58%. Semiconductor stocks fell across the board, ASML Holdings fell 3.24%, Soitec closed down 6.7%, STMicroelectronics fell 3.56%, and ASM International rose 5.42%.

 

- Treasury

The eurozone's third-quarter economic growth exceeded expectations, and Germany unexpectedly avoided recession, which lowered expectations for interest rate cuts. The yield on two-year German bonds rose by about 12 basis points.

Chancellor Reeves' budget plan hinted that both UK debt and fiscal stimulus would be expanded. The yield on 10-year UK bonds fell first and then rose, rising by 9 basis points during the session to the highest level since November last year.

 

- FX

GBP/USD fell 0.38% to 1.2965. At the beginning of the release of the British Chancellor of the Exchequer Reeves' autumn budget report, it hit a daily low of 1.2937 at 20:48, and then rebounded to a daily high of 1.3043 at 22:27.

The euro rose 0.35% to 1.0857 against the US dollar

 

Cryptocurrency Market

The largest bitcoin futures contract by market value rose 0.44% to $73,665.00 in late trading, as Trump vowed to make the United States the "cryptocurrency capital of the planet." It reached $74,485.00 on October 29.

The second largest Ethereum futures contract rose 1.58% to $2,700.00.

Trump's trade lifted spot bitcoin to near its all-time high on Tuesday, but it fell more than 1% on Wednesday to hover around $72,000.

 

 

Macro

1. The US economic data was mixed. Although consumer spending soared, the real GDP growth rate in the third quarter was lower than expected. The core PCE inflation rose by 2.2% month-on-month. Although it continued to cool down, it was still higher than expected. However, the labor market was stronger than expected. The number of ADP employment in the United States in October exceeded expectations and increased to 233,000. The speed of corporate recruitment hit a new high in more than a year.
2. The eurozone's GDP growth rate in the third quarter was 0.9% year-on-year, exceeding expectations. Germany's economy unexpectedly avoided recession, France's economic growth accelerated, and Spain's economy remained stable.

 

 

Earnings For Today

 

 

Market Events

 

 

 

Stocks to Focus

1. Robinhood, a popular online brokerage firm, closed up 0.64% but fell more than 16.8% after the market closed. Its third-quarter results were generally worse than expected.
2. McDonald's closed down 1.18%. The "victims" of the E. coli infection incident are now filing a class action lawsuit in a federal court in the United States over the food safety incident.
3. Reddit closed up 41.97% to a new high. It unexpectedly achieved profitability in the third quarter of this year, the first time in its nearly 20 years of existence. Its fourth-quarter revenue and EBITDA guidance exceeded expectations.

 

Focusing Gold

The uncertainty of the US presidential election boosted safe-haven demand. New York gold futures once broke through $2,800 to hit a record high, and spot gold once broke through $2,790 to hit a new high