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ADDX Go Market Morning Wrap - 26th Nov

Go Wire
Go Wire
November 25, 2024
GoGPT Summarizes Articles



Market Key Focus

US Market

- Markets

Wall Street celebrated the nomination of Benson, who is considered a fiscal conservative, as the US Treasury Secretary, believing that he will help to lower inflation and urge a more moderate tariff policy. In addition, the easing of the situation in the Middle East boosted risk sentiment.

US stocks rose across the board. The Dow Jones Industrial Average and the Russell 2000 small-cap stock index both hit record highs. The S&P hit an intraday high before narrowing its gains. Funds continued to rotate out of technology stocks and into cyclical stocks. The Nasdaq rose 1% and then turned down. The small-cap stock index rose as high as 2.5%


- Stocks

Nvidia closed down 4.18% to a three-week low, and Tesla closed down 3.96%. UBS said that Tesla's market value surge was due to "animal spirits" rather than positive fundamentals, and California is not considering including Tesla in its electric vehicle tax credit program


- Treasury

Bessent's election as Treasury Secretary calmed the market's concerns about the future of the US economy. The US Treasury yield plunged by double digits, and the 2/10-year US Treasury yield inverted again since October 7.

The US 10-year benchmark Treasury yield fell 13.09bp to 4.2692%. The two-year US Treasury yield fell 10.66bp, hitting a daily low of 4.2664%



- FX

The dollar index followed the decline in U.S. Treasury yields, falling about 0.6% on Monday, falling below 107 and bidding farewell to a two-year high.


Asian Market

- Markets

Asian markets opened the week positively, led by gains in Japan's Nikkei 225 (+1.5%) and South Korea's KOSPI (+1.39%), as investors favored cyclical stocks. Chinese indices, however, underperformed due to lingering economic concerns, with the CSI 300 down 0.46% and the Hang Seng index shedding 0.41%. Optimism over Wall Street's Friday session supported sentiment elsewhere, despite geopolitical tensions between Russia and Ukraine.


- Stocks

Alibaba closed up 2.95%, Baidu closed up 2.91%, and its "Apollo Go" plans to conduct the first phase of testing in Hong Kong before the end of the year.

NIO closed down 3.51%, and Goldman Sachs downgraded its rating to "sell".


- FX

The Japanese yen once rose above 154, and the RMB rose as high as 235 points during the session and once exceeded 7.24 yuan.


European Market

- Markets

European stock markets rose for three consecutive days, with the UK FTSE 100 index closing up 0.36%, Germany's DAX 30 index closing up 0.43%, and France's CAC 40 index closing up 0.03%.


- Stocks

Household goods and mining stocks both rose 1.21% to lead the gains, while oil and gas stocks fell 1%.

Among individual stocks, UniCredit Bank of Italy proposed to acquire Italian bank Banco BPM for 10 billion euros. The former's stock price closed down 4.77%, while the latter's stock price closed up 5.5%. UniCredit Bank CEO said that after completing the acquisition of Banck BPM, it would consider acquiring Commerzbank. Commerzbank fell 5%.

According to incomplete statistics, eight companies, including four automakers such as Volkswagen, Audi, Ford, and Stellantis, as well as four parts giants, will lay off a total of about 50,000 employees in Europe. Among the automakers counted, Volkswagen is the automaker with the largest number of layoffs. It will close at least three German factories and lay off tens of thousands of employees to cope with the decline in profits.


- Treasury

The yield on the benchmark 10-year German government bond in the euro zone fell 3.2bp to 2.210%.

The yield on the two-year German government bond rose 3.3bp to 2.024%.

The yield on the 10-year British government bond fell 4.2bp, and has continued to fall since it rose to 4.594% on November 6. The yield on the two-year British government bond fell 0.2bp


- FX

The euro rebounded by more than 0.7%, and the pound fell from a six-month low


Cryptocurrency Market

  1. Bitcoin futures fell 5.79% to $93,955.00 at the end of the trading day. It opened lower on Monday and remained in a downward trend throughout the day.
  2. The Ethereum rose 3.21% to $3,437.00 at the end of the trading day.
  3. Wall Street is preparing to launch a new generation of cryptocurrency-related ETFs to cater to the tastes of all types of investors.
  4. MicroStrategy closed down 4.37%. Bernstein raised the company's target price, expecting a 40% upside


Macro

  1. Chicago Fed President Goolsbee, a 2025 voting member, reiterated that FOMC interest rates will be at lower levels by 2025 and warned against attaching importance to inflation data in any one month. The market currently expects the ECB to cut interest rates by about 150bp by the end of next year, while the Fed will cut interest rates by about 70bp.
  2. The U.S. financial markets were closed on Thursday for Thanksgiving and trading ended early on Friday. Analysts expect light trading and will focus on the minutes of the Federal Reserve's November FOMC meeting to be released on Tuesday, the second reading of the U.S. third-quarter GDP on Wednesday and the October personal consumption expenditure price index. The latter will be the last PCE inflation data before the Federal Reserve's December meeting. Bets on a 25bp rate cut in December hover at 56%


Stocks to Focus

  1. Anglo American plc ADR closed up 1.62%. The company will sell its remaining coal business, with the transaction amount up to approximately US$3.8 billion
  2. Buffett will convert part of Berkshire shares to donate to four family foundations. Berkshire B closed up 0.18%
  3. Macy's closed down 2.21%. An employee hid $132 million to $154 million in distribution costs. The company postponed the release of its third-quarter financial report to complete an independent investigation
  4. Cassava Sciences (SAVA) closed down 83.78%, the largest intraday drop since its US IPO. The company's ReThin-ALZ Phase III clinical trial results showed that Simufilam failed to achieve the combined endpoint of reducing the hostility or functional decline of patients with mild to moderate Alzheimer's disease
  5. After Trump nominated the FDA director, Hims & Hers, a supplier of "affordable weight loss drugs", closed up 23.77%, a record high


Tracking Gold

Due to reports of a ceasefire between Israel and Hezbollah, coupled with Trump's nomination of Benson as US Treasury Secretary, gold's safe-haven appeal was weakened. Both futures and spot gold fell by more than 3%, bidding farewell to a five-day winning streak and a three-week high.