ADDX Go Market Morning Wrap - 14th Nov

Market Key Focus

US Market

- Markets

The gains in U.S. stocks faltered. The three major indexes collectively turned down at the beginning of the session, and then turned higher again. At the end of the session, the gains narrowed significantly and the Nasdaq closed down.

Russell small-cap stocks led the way with an initial increase of nearly 1%, and then fell by nearly 1%.

The VIX index closed down 4.69% at 14.71

- Stocks

Most chip stocks fell. The Philadelphia Semiconductor Index closed down 2%. Nvidia's two-times long ETF closed down 2.56%.

AMD closed down 3.01%, and announced that it would lay off about 4% of its employees worldwide.

- Treasury

The year-on-year increase in CPI accelerated but was in line with expectations.

Traders increased their bets on a 25bp rate cut in December. The two-year Treasury yield fell 10bp to 4.24%, falling from a four-month high, but the 10-year bond yield fell more than 7bp before turning up.

- FX

After the release of CPI, the US dollar index fell first and then rose to the highest level in 13 months since October last year. The US dollar index DXY rose 0.44% in late trading.

The dollar continues to surge

Asian Market

- Markets

The Nikkei 225 index fell by about 1.5%, South Korea's Kospi fell by more than 2%, and Vietnam and India's stock indices followed suit.

Philippine stocks entered a correction, down 11% from their October high.

- Stocks

Samsung Electronics fell more than 4%, with its share price hitting a four-year low. Due to its lagging behind in AI chip competition, Samsung Electronics performed the worst among global chip manufacturers such as TSMC and Nvidia this year. At the same time, the current market is increasingly concerned about the "Trump 2.0" policy.

- FX

The yen fell 0.52% against the dollar at the end of the trading day to 155.41 yen.

The offshore RMB fell 7 points against the dollar at the end of the trading day to 7.2437.

European Market

- Markets

European stocks fell for two days in a row but narrowed significantly in late trading as traders digested U.S. inflation data.

The pan-European STOXX 600 index closed down 0.13%. The Eurozone STOXX 50 index closed down 0.09%. The FTSE Pan-European Blueprint 300 Index closed up 0.03%.

- Stocks

Just Eat Takeaway surged 20% at one point, while Siemens Energy rose about 19%.

- Treasury

The 10-year German bond yield rose 2.8bp to 2.390%. The two-year German bond yield rose 2.3bp to 2.155%.

The 10-year British bond yield rose 2.1bp. The two-year British bond yield fell 1.3bp.

- FX

The euro fell 0.59% against the dollar to 1.0561, and the pound fell 0.34% against the dollar to 1.2704

Cryptocurrency Market

1. The leading Bitcoin futures with the largest market value fell 1.09% to $89,110.00 in late trading, and rose to $94,065.00 at one time, then gave up the gains and turned down
2. Spot Bitcoin rose 1.6% to $89,700, and rose to $93,462.17 as a record high
3. The second largest Ethereum futures fell more than 2.7% to $3,174.00, and traded in the range of $3,364.00-3,142.50 during the day

Macro

1. The overall U.S. CPI accelerated to a three-month high of 2.6% year-on-year and stopped its six-day losing streak. The month-on-month growth rate of core inflation did not fall for the third consecutive month, which was in line with expectations. After the data was released, traders increased their bets on the Fed's December rate cut and reduced the number of rate cuts in 2025. The probability of a 25 basis point rate cut in December rose from 58.7% to 82.5%, but Citi still expected the Fed to cut interest rates by 50bp in December. Wells Fargo pointed out that the Fed may slow down the pace of rate cuts starting in 2025 and is expected to cut interest rates every other meeting

The probability of a 25 basis point rate cut in December rose from 58.7% to 82.5%

1. The German Chancellor's advisers have sharply lowered their economic growth forecasts for next year, predicting GDP growth of only 0.4%, far lower than the previous forecast of 1.1%. The forecast for 2024 has also been lowered from 0.9% growth to a contraction of 0.1%. German Central Bank President Joachim Nagel warned that Trump's trade tariffs could derail the German economy and cause a loss of up to 1% of GDP. French Central Bank Governor Villeroy warned that Trump's economic agenda would pose risks to the global economy and could lead to rising inflation in the United States.

Market Events

The market is focused on PPI and weekly initial jobless claims on Thursday, retail sales data on Friday, and comments from Federal Reserve Chairman Powell and other Fed officials.

Stocks to Focus

1. SoftBank Group ADR closed down 4.75%. Earlier financial reports showed that net profit in the second quarter was higher than expected. Nvidia announced a partnership with SoftBank to build AI infrastructure in Japan.
2. Tesla's "rival" Rivian closed up 13.71%. It once rose 23.8% during the session, setting a new intraday high of $13.10 since September 20. Volkswagen invested an additional $800 million in the company.
3. BioNTech announced that it had reached an equity acquisition agreement with BioNTech. BioNTech will acquire 100% of BioNTech's issued shares for an advance payment of $800 million. BioNTech closed up 4.85%
4. Cisco's third-quarter results and full-year guidance exceeded expectations. Its stock price once fell by more than 1.8% after the market.