ADDX Go Market Morning Wrap - 25th Nov

Market Key Focus

US Market

- Markets

Last Friday, Trump's trading was high, and funds continued to flow out of technology stocks and into economically sensitive cycles and small-cap stocks. The Nasdaq fluctuated between gains and losses, dragged down by Nvidia, which fell more than 3%, and Google A, which fell 1.7%.

The Dow Jones Industrial Average rose nearly 430 points, or about 0.97%, and the Russell Small Cap Index rose 1.8% to lead the way.

Last week, U.S. stocks rose together, and the small-cap index rose more than 4% to lead the way.

- Stocks

The chip index narrowed its decline to 0.2%, and the China Concept Index fell 1.4%.

All 11 sectors of the S&P rose. The telecommunications sector fell 0.69%, the utilities sector fell 0.66%, the information technology/technology sector fell 0.22%, the healthcare sector rose 0.08%, the energy sector rose 0.11%, the raw materials sector rose 0.55%, the real estate sector rose 0.84%, the consumer discretionary sector rose 1.02%, the financial sector rose 1.11%, the consumer discretionary sector rose 1.18%, and the industrial sector rose 1.36%.

- Treasury

The trend of U.S. Treasury bonds diverged, with the yield on two-year Treasury bonds rising by more than 2 basis points, but the yield on 10-year Treasury bonds fell

U.S. Treasury yields were mixed last week, with the two-year Treasury yield rising sharply by 7 basis points, while other bond yields fell

- Fx

The US dollar index rose nearly 1% to stand above the 108 mark and hit a two-year high

The dollar continues to surge to its highest level since September 2022

Asian Market

- Markets

The Nasdaq Golden Dragon China Index closed down 1.37%, roughly flat last week. Among ETFs, the China Internet Index ETF (KWEB) closed down 2.77%, the FTSE China 3x Long ETF (YINN) closed down 6.79%, and the China Technology Index ETF (CQQQ) closed down 3.49%. The FTSE A50 Index Futures closed up 0.33% overnight at 13,100.000 points.

- Stocks

Xiaomi Group ADR closed up 1.34%. Financial reports said that Xiaomi's second car may be launched in the first quarter of 2025.

PDD closed down 3.86%. JPMorgan downgraded PDD's ADR rating to neutral from its previous rating of overweight, with a target price of $105.

- FX

The yen fell 0.18% against the dollar at the end of the trading day to 154.82 yen.

The offshore RMB (CNH) fell 47 points against the dollar at the end of the trading day to 7.2597 yuan, hovering at a nearly four-month low.

European Market

- Markets

European stock markets rose for two consecutive days. The pan-European STOXX 600 index closed up nearly 1.2%, up 1% for the week.

The pressure on the pound helped push British stocks up 1.4% on last Friday.

- Stocks

Healthcare and media sectors rose more than 3% last week, while the banking sector fell more than 2%.

- Treasury

The money market's expectations for a rate cut by the European Central Bank have increased, with the two-year German bond yield falling below 2% and the French/German 10-year bond yield spread widening to 80bp.

- FX

The euro fell to 1.03, a two-year low, and the pound hit a six-month low

Cryptocurrency Market

The leading Bitcoin futures with the largest market value rose by 1.09% to $99,815.00. It once rose above $100,000 last week setting a new record high. It has risen by 8.51% last week, and has continued to fluctuate upward smoothly.
In the past seven natural days, spot Bitcoin rose by 7.7% to $98,800.
The second largest Ethereum fell by 0.95% in late trading to $3,332.50, and rose by 7.19% last week.

Macro

The euro fell below 1.04 to a two-year low, and market expectations for the European Central Bank's radical interest rate cut of 50 basis points in December have increased significantly. Some voting committees said that if economic risks materialize, a more significant interest rate cut may be considered. The pound hits its lowest level in six months, with traders expecting the Bank of England to remain on hold in December and may cut interest rates by another 75 basis points by the end of next year.

There is a 50% chance that the Fed will cut interest rates 2 to 3 times by the end of 2025

Data from European countries such as Germany and France were dismal. Eurozone business activity declined again in November, both the service and manufacturing PMIs fell into contraction, new orders fell for six consecutive months and the decline widened, and business confidence fell to a one-year low. The UK had a bad start in the fourth quarter, with retail sales in October falling more than double the expected month-on-month, and the PMI in November entered the contraction range
The euro fell below 1.04 to a two-year low, and market expectations for the European Central Bank's radical interest rate cut of 50 basis points in December have increased significantly. Some voting committees said that if economic risks materialize, a more significant interest rate cut may be considered. The pound hits its lowest level in six months, with traders expecting the Bank of England to remain on hold in December and may cut interest rates by another 75 basis points by the end of next year.

Stocks to Focus

Texas Pacific Land (TPL), a company that benefits from land and resource management throughout the life cycle of oil wells, as well as water services and operations, closed up 14.15%, hitting an intraday record high for four consecutive trading days. The company will be included in the S&P 500 index. So far in 2024, it has risen by more than 200%
Investors rotated to cyclical stocks, with General Motors closing up 5.12% and Ford Motor closing up 3.52%.

Tracking Gold

As tensions between Russia and Ukraine escalate, safe-haven demand outweighs the adverse effects of the U.S. dollar hitting a two-year high, Gold prices rose for five consecutive days this week, rising more than 1% on last Friday to once again stand above the $2,700 mark for the first time in more than two weeks.

The five-day increase of 5.7% set the largest single-week increase in nearly two years.

Gold prices recover for fifth day from post-election plunge