ADDX Go Market Morning Wrap - 27th Nov

Market Key Focus

US Market

- Markets

The three major U.S. stock indexes closed near their daily highs, with the Dow Jones and S&P hitting new highs, while small-cap stocks fell from their new highs. Large-cap technology stocks performed well

- Stocks

Energy stocks lagged behind due to the easing of tensions in the Middle East and the drag of oil prices.

Trump's tariff proposals weighed on European and American auto stocks, with General Motors falling by about 9%, the most in more than two years.

Among individual stocks, Amgen's Maritide research on weight loss drug fell short of Wall Street's high expectations, and it fell by more than 12% at the beginning of trading, dragging down the Dow.

Wells Fargo hit a record high for four consecutive days, and the company's asset cap may be lifted in the first half of 2025.

- Treasury

Trump's tariff proposal earlier, coupled with the Federal Reserve's meeting minutes showing that Fed members supported gradual interest rate cuts, helped push up long-term U.S. Treasury yields. The 10-year base bond yield rose back to 4.30%, while the two-year short-term bond yield fell from the intraday high after the minutes were released.

- FX

After Trump's tariff proposal, the US dollar index reversed V-shaped on Tuesday and finally closed higher. The US dollar rose more than 2% against the Mexican peso and hit a four-year high against the Canadian dollar.

Trump's tariff proposal helps push dollar higher

Asian Market

- Markets

Most Asian markets retreated after President-elect Donald Trump’s tariff threats rattled sentiment, with Japan's Nikkei 225 falling 0.87% and South Korea's KOSPI down 0.56%. However, Chinese indices rose slightly, defying broader regional weakness, with the HSI gaining 0.04%, buoyed by positive domestic sentiment

- Stocks

Tencent Holdings ADR closed down 0.67%. According to reports, Tencent is reportedly planning to issue bonds overseas, returning to the offshore bond market for financing for the first time since 2021.

- FX

The Japanese yen once rose above 153 to a two-week high.

The offshore RMB fell as much as 260 points during the session, then halved and returned to 7.26 yuan.

European Market

- Markets

European stocks closed lower on Tuesday, ending a three-day winning streak. The pan-European STOXX 600 index closed down 0.57%. The Eurozone STOXX 50 index closed down 0.79%. The pan-European FTSE Euro STOXX 300 index closed down 0.56%

- Stocks

Affected by Trump's tariff threats, auto stocks fell 1.7%. Among all components of the European STOXX 600 index, Daimler Truck closed down 6.01%, automaker Stellantis fell 4.79%, and Volkswagen fell 2.38%

- Treasury

French/German 10-year bond yield spread closes at widest since 2012.

- FX

The euro fell 0.06% against the dollar to 1.0489, and the pound fell 0.01% against the dollar to 1.2568

Cryptocurrency Market

1. Bitcoin futures fell 3.61% to $91,520.00 at the end of the trading day. The second largest Ethereum fell 5.34% to $3,324.00 at the end of the trading day.
2. Bitcoin futures once approached the $90,000 mark, and cryptocurrency concept stocks fell across the board. Canaan Technology closed down 13.46%, the cryptocurrency exchange Coinbase closed down 6.06%, and MicroStrategy, which was targeted by short sellers Citron, closed down 12.33%
3. With Trump threatening to impose tariffs on Canada, Mexico and China and Mexico's president hinting at retaliatory tariffs, Goldman Sachs expects the core PCE inflation rate, which is the Fed's most important factor, to rise by nearly 1%

Macro

1. US economic data was mixed. New home sales fell 17.3% month-on-month to 610,000 units in October, lower than expected and a new low in about two years. In November, the Conference Board's consumer confidence rose to a more than one-year high, thanks to Trump's optimism about the economy and the job market after his victory. Expectations for stock market gains in the coming year hit a new high, and five-year inflation expectations fell to 4.9%, the lowest since March 2020.
2. Waiting for October PCE inflation, the minutes of the Fed's November meeting said that officials support gradual rate cuts and there is still room for rate cuts. Some officials believe that the option of suspending or accelerating rate cuts depends on economic data. The US dollar index narrowed its gains and hovered around the 107 mark. The two-year US Treasury yield fell from the daily high of 4.29323% to a flat level of nearly 4.27%, and spot gold rose to $2,626/ounce.

Stocks to Focus

1. Japanese Prime Minister Shigeru Ishiba sent a letter to Biden, hoping that he would approve Nippon Steel's acquisition of U.S. Steel. U.S. Steel's stock price fell nearly 0.8% at the beginning of the trading session and then closed up 2.72%
2. Best Buy closed down 4.89%. The company's third-quarter adjusted earnings per share were lower than market expectations.
3. Kohl's closed down 17.01%. The company lowered its full-year comparable sales forecast
4. According to reports, Biden proposed to cover weight loss drugs with Medicare and Medicaid. Eli Lilly closed up 4.55% and Novo Nordisk closed up 1.5%
5. HP (HPQ)'s performance guidance was not good, and it fell more than 12% after the market closed. Dell's revenue was lower than expected, and it fell more than 9% after the market closed

Tracking Gold

Gold prices fell to a one-week low during the session as Israel agreed to a ceasefire agreement with Lebanon, leading to a weakening of safe-haven demand. However, market concerns about Ukraine and the tariff plan of US President-elect Trump limited the decline. Gold futures and spot gold eventually closed slightly higher. In particular, the Fed minutes supported a gradual rate cut, which stopped the decline in gold prices in the short term.

Gold prices edged higher yesterday despite a stronger dollar