ADDX Go Market Morning Wrap - 15th Nov

Market Key Focus

US Market

- Markets

Fed Chairman Powell said that the Fed does not need to rush to cut interest rates, causing U.S. stock indexes to fall further and close near daily lows. The Dow Jones Industrial Average fell more than 250 points at one point. All sectors except energy and technology fell. Trump's trade continued to ebb.

- Stocks

It was reported that the Trump team plans to cancel the $7,500 electric vehicle tax credit, and electric vehicle concept stocks plummeted. Nikola closed down 22.76%, Workhorse closed down 14.49%, and "Tesla's rival" Rivian closed down 14.3%

- Treasury

Powell hit traders' expectations of a rate cut by the Federal Reserve, and the two-year Treasury yield, which is more sensitive to interest rates, turned higher in late trading, approaching a four-month high

- FX

The U.S. dollar index rose 0.4% on the day of Powell's speech, and stood above the 107 mark during the session, rising for five consecutive days and setting a new high in more than a year

Asian Market

- Markets

The Nasdaq Golden Dragon China Index closed down 1.81% at 6449.21 points. Among ETFs, the FTSE China 3x Long ETF (YINN) closed down 3.16%, the China Technology Index ETF (CQQQ) closed down 2.60%, and the China Internet Index ETF (KWEB) closed down 1.51%. The FTSE A50 Index Futures closed down 0.36% overnight at 13478.000 points.

- FX

The yen fell 0.53% against the dollar at the end of the trading day to 156.28 yen. According to Bloomberg, the Japanese government has enriched the details of the economic stimulus plan and plans to provide 30,000 yen subsidies to low-income families.

The offshore RMB fell 101 points against the dollar at the end of the trading day to 7.2538 yuan

European Market

- Markets

European stock markets closed up more than 1%, ending two days of losses. French and German stock indices both rose more than 1%, and the Eurozone blue chip Stoxx 50 index rose 2% at one point.

The pan-European STOXX 600 index closed up 1.08%. The Eurozone STOXX 50 index closed up 1.97%. The FTSE Euro STOXX 300 index closed up 1.04%.

- Stocks

Loss-making British luxury goods company Burberry closed up 18.7% after announcing a reform plan.

Technology stocks rose 3.13% to lead the gains, while auto and oil and gas stocks both rose about 1.7%. European stocks Siemens closed up 4.91%, with its share price hitting a record high, and the company's fourth-quarter revenue exceeded expectations.

- Treasury

Money markets raise expectations for faster and deeper ECB rate cuts, German bond bull market steepens.

The 10-year German bond yield fell 4.9bp to 2.341%. The two-year German bond yield fell 6.3bp to 2.102%.

The 10-year British bond yield fell 3.7bp. The two-year British bond yield fell 6.2bp.

- FX

The euro fell 0.32% against the U.S. dollar to 1.0530, falling below the 1.05 for the first time since October 13, 2023

The pound fell 0.30% against the U.S. dollar to a four-month low

Cryptocurrency Market

The leading Bitcoin futures contract with the largest market value fell 1.92% to $88,520.00 in late trading, while the second largest Ethereum futures contract fell 1.89% to $3,136.00 in late trading.

Macro

1. In terms of economic data, the US PPI rebounded across the board in October, up 2.4%(YoY), higher than expected. The stickiness of the service industry intensified. The core PPI in October, excluding food and energy, increased by 0.3%(MoM) faster than expected. In addition, the CPI in October announced on Wednesday accelerated year-on-year growth, indicating that the Fed's inflation battle has not yet won. The number of first-time applications for unemployment benefits in the United States fell to 217,000 last week, the lowest level since May. CICC's research report pointed out that it is still necessary to pay attention to the last non-agricultural and inflation report before the December meeting. If the data exceeds expectations, the Fed may maintain the flexibility of not cutting interest rates in December

1. Due to the impact of possible tariff measures imposed by the United States, market concerns about the economic outlook of the eurozone have increased. Traders have increased their bets on a European Central Bank interest rate cut in 2025. It is expected that the European Central Bank will cut interest rates by a total of 146bp by December 2025, the highest since the end of October. The yield on German two-year government bonds fell 6 basis points to 2.10% at one point.
   

Stocks to Focus

1. Trump Media Technology (DJT) closed down 6.71%
2. Disney closed up 6.23%, rising nearly 12% at one point during the session. Adjusted earnings per share for the fourth quarter were higher than expected
3. Fashion luxury group Capri Holdings closed up 4.43%, and Tapestry closed up 12.8%, after Capri Holdings announced the termination of its merger with Tapestry.
4. Cisco closed down 2.13%. Its revenue fell 6% last quarter, but it was still better than expected. Its full-year guidance was slightly lower after the upward revision.
5. The 13F report shows that Berkshire Hathaway reduced its holdings in Apple, Bank of America, Utah Beauty, Charter Communications and other stocks in the third quarter. At the end of the third quarter, its holdings in Bank of America were 10.4%. Its major holdings include Apple, American Express, Bank of America, Coca-Cola, and Chevron.
6. "Affordable weight loss drug supplier" Hims & Hers Health (HIMS) closed down 24.46%, the worst single-day performance since its US IPO. Amazon is launching a competing e-health product for Prime members, and analysts say Hims faces a "serious threat."

Tracking Gold

The strong dollar put pressure on metals.

London base metals fell across the board, with gold falling to a two-month low. Following the Republicans' sweeping victory in the November 5 election, gold prices have plunged by more than $170