ADDX Go Market Morning Wrap - 20th Nov

Market Key Focus

US Market

- Markets

In the early trading of the US stock market, due to the escalation of tensions between Russia and Ukraine, investors panicked and turned to safe-haven assets.

The Dow Jones Industrial Average fell by more than 450 points at one point, the S&P fell by nearly 0.7%, the Nasdaq fell by more than 0.5%, and the Russell Small Cap Index fell by about 1%. The volatility index VIX, which is regarded as the best "fear index" on Wall Street, rose by 15% to nearly 18.

Subsequently, the panic eased, and Nvidia achieved its largest single-day increase in two months on the eve of its earnings report. The US stock indexes continued to rise and closed near the daily high. Only the Dow Jones Industrial Average failed to turn positive.

- Stocks

Google A fell nearly 1% before closing up 1.61%. The U.S. Department of Justice will push Google to sell Chrome to break Google's monopoly in the search market. If the judge rules that Google sells Chrome, the business may be worth up to $20 billion.

Nvidia closed up 4.89%. It was reported that Sam Altman personally raised investment for AI chip maker Rain AI to challenge Nvidia.

Goldman Sachs Group strategist David Kostin expects the S&P 500 to rise 10% to 6,500 by the end of 2025. Bank of America said clients had $4.9 billion in inflows into stocks in the week ended Nov. 15, the largest weekly inflow since mid-September.

- Treasury

The yield on the benchmark 10-year U.S. Treasury bond fell 3.34bp to 4.3805%.

The yield on the two-year Treasury bond fell 1.04bp to 4.2697%.

ING economists pointed out on Tuesday that Trump's potential choice of Treasury Secretary has a significant impact on financial markets. An experienced and reliable candidate will be welcomed by the bond market, while a candidate with little experience or a lack of checks and balances on Trump's plans could lead to a long-term sell-off in U.S. bonds and a weaker dollar.

- Fx

The US dollar index fell back after rising, and finally fell by about 0.1%

Asian Market

- Markets

The Nasdaq Golden Dragon China Index closed down 0.75%. Among ETFs, the FTSE China 3x Long ETF (YINN) closed down 2.81%, the China Technology Index ETF (CQQQ) closed up 0.54%, and the China Internet Index ETF (KWEB) closed down 0.55%. The FTSE A50 Index Futures closed down 0.26% in the continuous overnight trading at 13,380.000 points.

- Stocks

Xpeng Motors fell more than 8.3% and closed down 3.77%. Its Q3 net loss narrowed by 53.5%, and its Q4 delivery guidance was the strongest in history.

Weibo closed up 6.35%, with Q3 profit up 68.5% year-on-year, and strong performance of membership and game revenue

- FX

The safe-haven demand drove the yen to 153 but eventually gave up almost all of its gains.

The offshore RMB fell 93 points against the US dollar in late trading to 7.2366 yuan.

European Market

- Markets

Investors focused on the tension in Russia. The pan-European STOXX 600 index closed down 0.45% to its lowest level in more than three months. It had fallen 1% during the session.

The eurozone blue-chip index fell 2% at one point. As risk aversion increased, bank stocks fell across the board. The Italian banking index closed down more than 1.9%.

- Treasury

The euro zone benchmark German 10-year bond yield fell about 10bp to below 2.27% during the session, and finally closed down 3.6bp at 2.338%, while the two-year yield fell 4.2bp to 2.139%.

The UK 10-year bond yield fell 2.2bp, and the two-year gilt yield fell 2.1bp.

- FX

EUR/USD fell 0.03% to 1.0595, GBP/USD was flat at 1.2679

Cryptocurrency Market

Bitcoin hit a record high of over $94,000, and most cryptocurrency concept stocks rose. "big Bitcoin holder" MicroStrategy Investment MSTR closed up 11.89%, Mercurity Fintech ADR closed up 10.57%, while the cryptocurrency exchange Coinbase closed down 0.26%

Macro

1. In terms of economic data, U.S. housing starts fell 3.1%(MoM) in October, hitting a three-month low, deepening the decline in U.S. bond yields at the beginning of the session. Schmid, a 2025 FOMC voting member and president of the Federal Reserve Bank of Kansas City, pointed out that the task of fighting inflation has not yet been completed.
2. The final value of the eurozone's October CPI returned to the central bank's target of 2%, paving the way for a rate cut in December. ECB board member Muller pointed out that a 25bp rate cut may be possible in December.
   

Stocks to Focus

1. Trump Media Technology (DJT) closed down 8.88%
2. Walmart closed up 3%, and once rose by about 5% during the session to a record high. Both Q3 revenue and profit exceeded expectations, and the revenue guidance was raised again.