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ADDX Go Market Morning Wrap - 7th Nov

Go Wire
Go Wire
November 7, 2024
GoGPT Summarizes Articles



Market Key Focus

US Market

- Markets

Trump announced his victory, and the explosive growth of "Trump Trade" helped the S&P, Nasdaq and Dow Jones Industrial Average to hit record highs. The Dow Jones Industrial Average rose by more than 1,550 points, the best increase in two years, and the Russell Small Cap Index rose by more than 5.8%, leading the gains


- Stocks

Tesla surged nearly 15% to a two-year high, and Trump Media Technology rose more than 34.8% before closing up nearly 6%, triggering a trading halt.

Expectations of regulatory relaxation boosted oil, steel and cryptocurrency stocks, and the Philadelphia Bank Index closed up more than 10%. Photovoltaic stocks collapsed across the board


- Treasury

Trump's victory has made investors nervous about the risk of the U.S. federal government's expanding fiscal deficit and the inflation caused by tax cuts and tariff policies. Traders cut their bets on the Federal Reserve's interest rate cuts next year, and U.S. bonds were sold off across the board.

The yield on the U.S. 30-year Treasury bond once rose by 23 basis points, the largest single-day increase since 2020, and the yield on the U.S. 10-year Treasury bond once soared by 20 basis points, the largest increase since April 10.


- FX

The dollar index rose by more than 1.6% to 105 on the day after the U.S. election, reaching its highest level in nearly four months




Asian Market

- FX

Yen: The yen fell 1.95% against the U.S. dollar at the end of the trading day to 154.58 yen. Wells Fargo pointed out that if the U.S. Treasury yields continue to rise, the yen-dollar exchange rate may fall below 155, or even hit a low of 161.95. In response, the Bank of Japan may respond by releasing signals or raising interest rates in advance.

Offshore RMB (CNH): The offshore RMB fell 1019 points against the U.S. dollar at the end of the trading day to 7.2036 yuan. The overall trading range during the day was 7.0906-7.2096 yuan, approaching the bottom of 7.2521 yuan on August


European Market:

- Markets

The pan-European STOXX 600 index closed down 0.54%. The Eurozone STOXX 50 index closed down 1.43%. The FTSE pan-European blue chip 300 index closed down 0.47%.

BMW closed down 6.58%. The automotive division's revenue in the third quarter was 27.85 billion euros, a year-on-year decrease of 13%, and the company's profit margin fell to the lowest level in four years.


- Stocks

Trump's election caused European stocks to give up their earlier gains and close down. The market was worried about Trump's implementation of the tariff plan. European auto stocks fell across the board. BMW fell 6.58%, Mercedes-Benz Group fell 6.44%, Volkswagen fell 4.27%, Stellantis rose 1.75%, but announced layoffs of more than 1,000 people.

Due to concerns that the Trump administration might suspend approval of new projects, European renewable energy stocks fell more than 10%. Vestas Wind Technology closed down 12.82%, down more than 23% in two days, and Orsted Energy fell 12.79%


Treasury

The 10-year German bond yield fell 2.0 basis points to 2.405%. The two-year German bond yield fell 12.6 basis points to 2.176%. The 10-year British bond yield rose 3.3 basis points. The two-year British bond yield was roughly flat. The 10-year French bond yield rose 1.1 basis points, and the 10-year Italian bond yield rose 6.4 basis points.


- FX

The euro fell more than 1.8% and headed for its worst day in more than four years, reaching its lowest level in more than four months


Cryptocurrency Market

  1. The leading Bitcoin futures with the largest market value rose 9.63% to $76,585.00 in late trading, and once rose to $77,140.00 at 04:59 Beijing time, setting a new record high.
  2. Spot Bitcoin rose more than 9.7% in the past 24 hours, hitting a new record high of $76,475.38 at 04:54. The second largest Ethereum futures rose 11.11% to $2,711.00, and once rose to $2,730.50 at 05:17 Beijing time.





Macro

  1. Expectations for a Fed rate cut have plummeted, with the market now expecting only a 57 basis point cut in 2025, and less than 100 basis points in total cuts between now and the end of 2025. JPMorgan Chase expects the Fed to cut rates just once a quarter starting in March 2025. Nomura economists predict that the Fed may only cut rates once in 2025 and raised their terminal rate forecast by 50 basis points to 3.625%. They expect Trump to increase tariffs, which will push up inflation in the short term and lead to a modest slowdown in growth.
  2. Trump's tariff policy has triggered global inflation concerns. Guindos, vice president of the European Central Bank, said that if Trump implements the tariff plan, global economic growth and inflation may face a devastating impact. Villeroy, a member of the European Central Bank's Governing Council and president of the Bank of France, said that Trump's victory has increased the risks facing the global economy. However, Goldman Sachs expects the ECB to increase the rate cut. In addition, the final values ​​of the eurozone's comprehensive and service industry PMIs in October were both revised upward, both above the boom-bust line and returning to expansion.



Market Events




Stocks to Focus

  1. Bitcoin's surge to a new high led to a general rise in blockchain concept stocks. Coinbase closed up 31.11%, Cipher Mining rose more than 31%, Riot Platforms rose more than 26.1%, the double long Bitcoin ETF rose more than 19.7%, Robinhood rose more than 19.6%, "big Bitcoin holder" MicroStrategy Investment MSTR rose about 13.2%, Canaan Technology ADR rose about 13%, Ethereum ETF ETHV rose more than 11.4%, and Bitcoin ETF BITB rose about 9.9%.
  2. Novo Nordisk ADR closed down 4.33%. Q3 net profit increased by 21% year-on-year. Wegovy's revenue increased by 79%, but the full-year sales guidance range was narrowed.
  3. Pharmacy chain CVS closed up 11.33%. The net income in the third quarter exceeded expectations.