ADDX Go Market Morning Wrap - 19th Nov

Market Key Focus

US Market

- Markets

The S&P 500 index closed up 23.00 points, or 0.39%, at 5893.62.

The Dow Jones Industrial Average, which is closely related to the economic cycle, closed down 55.39 points, or 0.13%, at 43389.60.

The Nasdaq, which is dominated by technology stocks, closed up 111.68 points, or 0.60%, at 18791.81, ending a five-day losing streak.

The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed up 0.1%.

The VIX index of fear closed down 3.5% at 15.58.

- Stocks

On the news front, Nvidia's stock price fell due to reports that Blackwell chips overheated in servers. Reports said Trump may seek to relax restrictions on self-driving cars, and Musk is planning "completely unmanned driving".

Chip stocks rose across the board. The Philadelphia Semiconductor Index closed up 1.14%, and the industry ETF SOXX closed up 1.3%.

Most AI concept stocks rose. SMCI rose nearly 16%, and once rose more than 28% during the session. It was reported that the company will submit a compliance plan on Monday to avoid the risk of delisting from Nasdaq.

- Treasury

U.S. Treasury prices reversed their decline and rose, with the two-year and 10-year yields both falling by nearly 2bp, but not far from their multi-month highs.

The 30-year long bond yield once rose to 4.68%, the highest in nearly six months since May 31.

- FX

The US dollar index fell to 106, breaking away from its highest level in more than a year

Asian Market

- Markets

The China Concept Stock Index led the way strongly. The Nasdaq Golden Dragon China Index closed up 1.7% at 6,613.61 points. Among ETFs, the FTSE China 3x Long ETF (YINN) closed up 5.4%, the decline in the China Technology Index ETF (CQQQ) narrowed significantly to 0.1%, and the China Concept Internet Index ETF (KWEB) rose nearly 2%.

The FTSE A50 futures index closed up 0.11% in consecutive overnight trading, at 13448.00 points.

- Stocks

Xiaomi Group's ADR rose nearly 6%. Its third-quarter revenue increased 31% year-on-year to a record high of 92.5 billion yuan, and its automotive business had revenue of nearly 10 billion yuan in a single quarter.

- FX

Uncertainty over the Bank of Japan's interest rate hike policy has led to a weakening of the yen: the yen fell 0.7% against the dollar before the U.S. stock market and briefly fell below 155, not far from a four-month low

The offshore RMB fell as much as 150 points against the dollar before the U.S. stock market and fell below 7.25 yuan, then rose all the way and turned positive during the day, rising 100 points after the U.S. stock market midday and rising above 7.23 yuan.

European Market

- Markets

Waiting for inflation data such as the CPI in the UK and the Eurozone, the pan-European index, which has fallen for four consecutive weeks, closed slightly lower on Monday.

The European STOXX 600 index closed down 0.06%, the German DAX 30 index closed down 0.11%, the French CAC 40 index closed up 0.12%, and the British FTSE 100 index closed up 0.57%.

- Stocks

UniCredit Bank fell more than 2.7%, Nordic Bayer shares rebounded more than 9%, BE Semiconductor Industries closed down 3.32%, ASM International fell 2.23%, and ASML Holdings fell 0.85%.

Denmark's OMX Copenhagen 20 index closed down 0.63%, and diet drug supplier Zealand Pharma closed down 6.11%. Delivery Hero, the "European version of Ele.me", fell 4%, seeking to raise about US$1.4 billion to US$1.5 billion from Talabat's Dubai IPO.

- Treasury

The yield on the euro zone's benchmark German 10-year bond rose 1.8bp to 2.373%, while the two-year yield rose 5.9bp to 2.181%.

The yield on the UK 10-year bond fell 0.6bp to 4.465%, while the two-year gilt yield rose 1.8bp to 4.417%.

- FX

The euro once rose above 1.06 against the U.S. dollar to its highest level since last Tuesday, continuing to move away from a one-year low.

The pound rose as much as 0.6% against the U.S. dollar, standing firmly above 1.26 and moving away from a five-month low.

Cryptocurrency Market

The spot price of Bitcoin, the largest leader in market capitalization, rose by more than 2% before the U.S. stock market opened. Then the increase narrowed significantly. It once turned down during the U.S. stock market, and the increase expanded in late trading, pushing it back up to $92,000.

Ethereum, the second largest, rose more than 3% to stand at $3,160.

Macro

Before the release of the Federal Reserve FOMC October meeting minutes on Wednesday, the US NAHB housing market index rose to a seven-month high in November, with optimism that the Trump administration will change regulations and stimulate more residential construction. US inflation has been on the rise recently, and the market is focusing on the speeches of at least seven Fed officials this week. The Cleveland Fed model shows that rental inflation will not subside until 2026, which is expected to make it more difficult for the US to cut interest rates.
Before the speech of ECB President Lagarde, ECB Vice President Luis de Guindos and German Central Bank President Nagel both said that they were more worried about the damage that potential US trade tariffs would cause to Eurozone economic growth rather than the impact on inflation. The Governor of the Central Bank of Greece, who is also a voting member, said that Trump's potential new tariffs could trigger a recession in Europe, and that a 25bp rate cut by the ECB in December was a foregone conclusion.

Market Events

Stocks to Focus

Trump Media Technology stopped falling and turned to rise during the session, closing up more than 16.6%. The Dow said Trump will meet with the company's CEO privately.
Bakkt Holdings, a cryptocurrency concept stock, closed up more than 162%. Trading was suspended during the session due to large fluctuations. It was reported that Trump Media Technology was negotiating to acquire the company.
Oklo, which Altman bet on, once rose 23% to lead the nuclear power/uranium concept stocks. Oklo's rise was also related to Trump's choice of Chris Wright as Secretary of Energy. Wright is a director of Oklo and CEO of oilfield service provider Liberty Energy, which rose nearly 5%.
Super Micro Computer submitted a compliance plan to Nasdaq, and its stock price rose 20% after the market.

Tracking Gold

The weakening dollar and tensions between Russia and Ukraine pushed safe-haven gold prices to their biggest gain since August, ending a six-day losing streak and breaking away from a two-month low. Last week, gold prices posted their biggest weekly drop in more than three years on expectations that the Federal Reserve may slow the pace of interest rate cuts.

Spot gold rose as high as nearly $54, or 2.1%, to break through $2,610 in midday trading on U.S. stocks. Goldman Sachs expects gold prices to rise to $3,000 next year.