ADDX Go Market Morning Wrap - 1st Nov

Market Key Focus

US Market

- Markets

After opening lower, the US stock market fell further, with technology stocks, chip stocks, AI concept stocks, and Chinese stocks falling collectively. Microsoft's revenue guidance and Meta user growth disappointed Wall Street, dragging down the technology sector, which led the decline, with the Nasdaq falling nearly 3%.

-Stocks

Amazon's revenue and guidance were slightly higher than expected, and its stock price rose by more than 6% after the market closed.

Apple's third-quarter revenue exceeded expectations, but many of its product segments were lower than expected, and its stock price fell by more than 2% after the market closed.

Microsoft closed down 6.05%, its biggest one-day drop in two years. It expects the growth rate of cloud business revenue to slow down this fiscal quarter. Morgan Stanley raised Microsoft's target price from US$506 to US$548.

Treasury

U.S. Treasury yields hit a high and then fell on the last day of October, but U.S. Treasury prices were heading for their biggest monthly decline since 2022, with two-year and 10-year Treasury yields rising by at least 50 basis points in October.

- FX

The dollar index fell below 104 on Thursday, but has risen about 3.1% in October.

Asian Market

- Markets

Most Asian stock indices fell, with South Korea's Kospi closing down 1.45%; Indian stock indices fell again due to continued selling by foreign capital; the Bank of Japan continued to "stand still" in October, keeping the benchmark interest rate unchanged at 0.25%. After the interest rate decision, Japanese stocks continued to fall, with the Nikkei 225 index closing down 0.5%.

The FTSE A50 Index Futures closed up 0.01% overnight at 13,220.000 points.

- Stocks

Among the popular Chinese stocks, Li Auto closed down 13.58%, with a cumulative decline of 2.5% in October. The company's Q3 net profit was basically flat year-on-year, and its Q4 revenue guidance was lower than expected.

FX

The Bank of Japan's dovish comments weakened, and the yen rose 1% and broke through 152 for the first time since October 25

European Market

- Markets

European stocks closed lower on Thursday, with a cumulative decline of more than 3.3% in October, the largest monthly decline in a year.

The European STOXX 600 index closed down 1.20% at 505.39 points, down 3.35% in October. The Eurozone STOXX 50 index closed down 1.19%, down 3.46% in October.

The FTSE Euro Stoxx 300 index closed down 1.11%, down 3.09% in October.

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 strengthened by 0.26% as euro zone inflation accelerated more than expected in October, strengthening the case for the European Central Bank to be cautious in cutting interest rates.

Cryptocurrency Market

1. The leading Bitcoin futures with the largest market value fell 2.89% to $70,440.00 in late trading. Spot Bitcoin fell 3.6% in the last 24 hours to $70,210, and has risen 10.05% since the end of trading on September 30.
2. The second largest Ethereum futures fell 5.34% to $2,536.50.
3. The world's largest Bitcoin fund, BlackRock's Bitcoin ETF (iShares Bitcoin Trust) with a scale of $31 billion, received an inflow of up to $872 million on Wednesday, setting a single-day record. This shows that on the eve of the US election on November 5, the emergence of the "Trump deal" has triggered demand for Bitcoin.

Despite today’s poor performance, Bitcoin has had a strong month, with its best month since May, rising to an all-time high near $74,000 yesterday.

Market Events

Earnings For Today

Macro

1. The PCE inflation in the United States in September increased by 2.1% year-on-year, which was in line with expectations and closer to the Fed's 2% target, and cooled down from the previous value of 2.3% in August after being revised upward. However, the core PCE price index increased by 2.7% year-on-year, which exceeded expectations and was the highest month-on-month increase in six months. At the same time, the number of first-time applications for unemployment benefits last week fell more than expected, indicating a healthy job market, which confirmed the market's expectation of a regular 25 basis point rate cut by the Fed next week.
2. Inflation in the eurozone accelerated in October, with core CPI rising 2.7%. In addition, the eurozone's third-quarter GDP, which was released yesterday, exceeded expectations, and the tax increase and borrowing plans in the British Labour Party's budget pushed up inflation. Traders cut their bets on interest rate cuts by the European Central Bank and the Bank of England. It is expected that the European Central Bank is unlikely to cut interest rates by 50 basis points in December, and the Bank of England is expected to cut interest rates three more times by the end of 2025.

Stocks to Focus

1. Carvana, an American e-commerce platform for used car sales, rose nearly 25.1% and closed up 19.29%, thanks to its encouraging used car sales and optimistic outlook.
2. Estee Lauder closed down 20.9%, the largest drop in history. The company withdrew its 2025 fiscal outlook and lowered its dividend
3. Uber closed down 9.29%. Its Q3 profit hit a new high, but its Q3 total bookings and fourth quarter order guidance were lower than expected.