ADDX Go Market Morning Wrap - 5th Nov

Market Key Focus

US Market

- Markets

The S&P, Nasdaq, and chip index turned down in late trading, the Dow fell 400 points at one point, Russell small-cap stocks led the gains

- Stocks

Nvidia once rose 2.6%, Intel once fell more than 5%, NXP fell nearly 7% after the market, Yum China rose as high as more than 11%, and Xpeng Motors once rose more than 9%.

Utilities stocks, a safe-haven sector of U.S. stocks, led the decline, while energy stocks and real estate stocks performed well.

Energy stocks followed the rise in oil prices

- Treasury

The Trump deal was reduced, and the money market was still betting on a 25 basis point rate cut by the Federal Reserve on Thursday. The 10-year U.S. Treasury yield fell by more than 10 basis points and briefly fell below 4.30%.

-FX

The Bloomberg Dollar Index fell more than 0.4% the day before the U.S. election.

The dollar index fell below 104 to a two-week low, the largest drop in more than a month.

Asian Market

- Stocks

Yum China rose more than 11.1% and closed up 7.17%. Q3 revenue increased by 5% to a quarterly high, operating profit increased by 15%, and shareholder returns will increase by 50%, all exceeding market expectations.

- FX

The Japanese yen rose as high as 0.9% and once rose above 152.

The offshore RMB rose above 7.09 yuan to a three-week high during the Asian session, and rose by more than 200 points on Monday.

European Market

- Markets

European stocks closed lower on Monday as the market awaited the U.S. presidential election on Tuesday. Bank stocks rose 0.7% to lead all sectors, while technology stocks closed down 1.1%. Oil stocks were boosted by OPEC+'s decision to postpone its production increase plan and closed up 0.4%:

The pan-European STOXX 600 index closed down 0.33%. The Eurozone STOXX 50 index closed down 0.53%. The FTSE Euro STOXX 300 index closed down 0.37%

-Stocks

Burberry's European shares closed up 4.8% after reports that high-end down jacket maker Moncler may consider acquiring luxury goods company Burberry.

Swedish automaker Volvo's sales in October increased 3% year-on-year to 61,686 units, and its stock price closed up 5.01%.

- Treasury

The 10-year German bond yield fell 1.1 basis points to 2.395%.

The two-year German bond yield rose 1.7 basis points to 2.264%.

The 10-year British bond yield rose 1.3 basis points.

The two-year British bond yield rose 0.5 basis points.

- FX

The euro rose 0.40% against the dollar to 1.0877, and the pound rose 0.25% against the dollar to 1.2957

Cryptocurrency Market

The largest market capitalization leader, Bitcoin futures, fell 3.33% to $67,405.00 in late trading, while the second largest Ethereum futures fell 5.93% to $2,380.50.

Bitcoin fell again after hitting a record high last week. Bitcoin is currently supported in the $67,000 to $68,000 area

Macro

1. The market believes that the Federal Reserve will announce a 25 basis point rate cut on Thursday, and it is expected to cut by 44 basis points by the end of the year. Some analysts said that the uncertainty of the US election and future fiscal path supports cautious adjustment of monetary policy. Deutsche Bank said that the US election on Tuesday will determine the direction of the world economy and geopolitics in the next four years. JPMorgan Chase believes that if Trump wins, the Federal Reserve may suspend the easing cycle as early as December because immigration, tax cuts and tariff policies have raised inflation.
2. U.S. factory orders fell 0.5% in September, a deeper decline than the previous value, but non-defense capital durable goods orders excluding aircraft were higher than the initial value. The final value of the eurozone's October manufacturing PMI continued to shrink, but showed signs of stabilization. Traders generally expect the Bank of England to cut interest rates by 25 basis points on Thursday. UBS said the European Central Bank will cut interest rates faster than previously expected, and may cut interest rates at every meeting before June next year.

Market Events

Stocks to Focus

1. Trump Media & Technology Group (DJT) fell nearly 5.5% before closing up 12.37%, breaking away from its lowest closing level since October 18
2. Ford Motor closed up 1.37%, with U.S. sales in October up 15.2% year-on-year. U.S. F-series truck sales in October increased 26.1% year-on-year
3. US regulators rejected the power supply agreement related to Amazon's data center, and US nuclear power stocks fell across the board. Centrus Energy closed down 28.79%, OKLO, held by Sam Altman, fell more than 14.3% and closed down 2.86%, Talen Energy fell nearly 8.6% and closed down 2.2%, and Constellation Energy fell more than 12%, the worst in history.