ADDX Go Market Morning Wrap - 22nd Nov

 

Market Key Focus

US Market

- Markets

Trump's trade is on the rise again. Bitcoin, cyclical stocks and small-cap stocks closely related to the economy are leading the way, technology stocks are sold off and the Nasdaq fell more than 1.3% at one point, the S&P 500 fell more than 0.5% at one point, the Dow closed up more than 450 points or 1%, and the Russell small-cap index rose 1.7%.

 

- Stocks

Investors weighed the risk of a spin-off of Google's Chrome browser. Google fell nearly 7% at one point.

Nvidia was restless, rising 4.8% to a new intraday high at the beginning of the session, then fell 3.6%, and finally closed up 0.5%.

Apple fell more than 1.4% and closed down 0.21%. The U.S. Department of Justice asked Google to terminate its default search cooperation with Apple. Apple may face up to $20 billion in revenue losses. Apple plans to launch a major overhaul of its digital assistant Siri in 2026.

 

- Treasury

The yield on the benchmark 10-year U.S. Treasury bond rose 0.79bp to 4.4178%. The yield on the two-year Treasury bond rose 2.79bp to 4.3423%.

Analysts at Pacific Investment Management Company (PIMCO) believe that U.S. Treasuries are attractive after the recent rise in yields, given the prospect of further interest rate cuts by the Federal Reserve, and the yield curve is expected to steepen.

 

- Fx

The U.S. dollar index rose by about 0.4% to 107 points, once setting a new high since early October last year.

 

Dollar rebounds to near post-U.S. election high

 

Asian Market

- Markets

The Nasdaq Golden Dragon China Index closed down 1%. Among ETFs, the China Internet Index ETF (KWEB) closed down 1.6%, the FTSE China 3x Long ETF (YINN) closed down 1.75%, and the China Technology Index ETF (CQQQ) closed down 1.17%.

The FTSE A50 Index Futures closed up 0.04% overnight at 13,450.000 points.

 

- Stocks

PDD closed down 10.64%. Its third-quarter revenue fell short of expectations. Q3 revenue increased 44% year-on-year to 99.35 billion yuan, and net profit attributable to shareholders increased 61% year-on-year to 24.998 billion yuan, but fell 22% month-on-month.

 

- FX

The yen rose 0.59% against the dollar to 154.52 yen in late trading. The yen's rise against major currencies is not based on fundamentals, but is more likely to be affected by geopolitics and risk aversion related to Eastern Europe.

The offshore RMB (CNH) fell 39 points against the dollar to 7.25.

 

European Market

- Markets

European stocks closed higher on Thursday, ending a four-day losing streak.

Germany's DAX 30 index closed up 0.74%, France's CAC 40 index closed up 0.21%, and Britain's FTSE 100 index closed up 0.79%.

 

- Stocks

JD Sports shares fell 15.5% after the British sports retailer warned that its annual profits would be at the lower end of its forecasts due to a difficult October and low consumer spending.

 

- Treasury

As money market expectations for a rate cut by the European Central Bank increased, the yield on German 10-year government bonds fell 3.3bp to 2.318%. The yield on two-year German government bonds fell 2.4bp to 2.108%. The yield on British 10-year government bonds fell 3.0bp, and the yield on two-year gilts fell 2.6bp.

 

- FX

The euro fell 0.66% against the dollar to 1.0472, the lowest in more than a year.

The pound fell 0.51% against the dollar to 1.2587.

 

Cryptocurrency Market

1. Bitcoin hit a new record high of $100,000, and cryptocurrency concept stocks fell after rising. Canaan Inc. ADR closed up 8.98%, and MSTR rose nearly 14.6% to a record high before falling more than 16%. Citron shorted the stock and went long on Bitcoin, and the cryptocurrency exchange Coinbase also turned to close down 7.74%.
2. Trump's team is considering setting up a position specifically responsible for cryptocurrency policy, and Bitcoin futures are approaching the $100,000 mark to set a new high
3. U.S. Securities and Exchange Commission (SEC) Chairman Gensler plans to step down early on January 20 next year, the day Trump is sworn in. The crypto industry may usher in a major change in rules, and the market expects the next SEC chairman to be more friendly to Wall Street and cryptocurrencies.

 

Macro

1. The US economic data is mixed. The number of first-time unemployment claims in the week of November 16 was 213,000, unexpectedly falling to the lowest level since April. However, due to short-term impacts such as the Boeing strike and hurricanes, the number of people who continued to apply for unemployment benefits in the week of November 9 reached 1.908 million, the highest in three years. In November, the Philadelphia Fed's manufacturing activity was generally weak, and the business index fell from positive 10.3 to negative 5.5, far below expectations. As US mortgage loans fell in the previous month, home buyers took the opportunity to enter the market, resulting in a 3.4% month-on-month increase in US existing home sales in October, the largest increase since February, and house prices also hit a new high
2. Chicago Fed President Goolsbee believes that it is still necessary to cut interest rates in the future, but supports slowing down the pace. Economists have lowered their outlook for the extent of interest rate cuts next year. The third-ranking Fed official, New York Fed President Williams, said that interest rates may fall further. The market still expects that the probability of the Fed cutting interest rates by 25 basis points in December is about 55%.
3. Stournaras, a member of the ECB's governing council and governor of the Bank of Greece, said interest rates should be cut at every meeting until they reach 2%, and that a 25bp cut in December was the right response.

 

Stocks to Focus

1. It was reported that Trump Media Technology Group (DJT) applied for the crypto payment platform service TruthFi. DJT rose more than 5.9% and closed up 1.3%.
2. Gap raised its guidance for the Thanksgiving and Christmas holiday sales season, and its stock price rose by about 7% after the market.
3. Snowflake's third-quarter report exceeded expectations and raised its product revenue guidance for this fiscal year. Its stock price rose by more than 32%, the best since its listing. Salesforce also reported good financial results, with a maximum increase of more than 5%, which helped boost the Dow.