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ADDX Go Market Morning Wrap - 3rd Dec

Go Wire
Go Wire
December 3, 2024
GoGPT Summarizes Articles



Market Key Focus

US Market

- Markets

On the first trading day of December, the Nasdaq and S&P hit record highs, and the Dow Jones Industrial Average fell after breaking through 45,000 points, falling from its highest point. Technology stocks and chip stocks rose across the board, Apple hit a new high, and the China Concept Index rose by about 1%.


- Stocks

JPMorgan Chase predicts that the S&P 500 index is expected to climb further to 6,200 to 6,300 points by the end of the year, up 3%-4% from 6,032 points last Friday. Analyst Andrew Tyler mentioned in the report that the positive macro environment, earnings growth and the support of the Federal Reserve are the reasons for maintaining a bullish outlook, and suggested taking advantage of market momentum, recommending value stocks and cyclical sectors such as banks, automakers, transportation companies and small-cap Russell 2000 index, while continuing to invest in the seven major technology stocks in the technology and telecommunications sectors, data centers and semiconductors


-Treasury

Federal Reserve Board Governor Waller supported a rate cut in December, and the two-year Treasury yield narrowed its gains.


The spread between 2-year and 10-year Treasury yields inverted today


- FX

The US ISM manufacturing index exceeded expectations, pushing the dollar index up more than 0.6%


The US dollar bids farewell to recent declines and rebounds on Monday


Asian Market

- Markets

Asian stock markets showed a positive performance, driven by optimism in global markets and unfolding economic data. Key indices recorded gains:

  1. Nikkei 225 rose by 1.08%, closing at 38,513.02 points3.
  2. Shanghai Composite increased by 1.24%2.
  3. Hang Seng Index gained 0.5%2.
  4. ASX 200 in Australia edged up by 0.14%2.

The positive sentiment was supported by a strong risk appetite globally, although commodities like gold saw a decline.


- FX

The expectation of rate hike pushed the yen up to 149, and the offshore RMB fell by more than 460 points and fell below 7.29 yuan


European Market

- Markets

"Political turmoil in France" dragged down European stocks, which opened lower but eventually closed higher. The French stock market opened down more than 1.2% and then closed up. The German stock index fell 0.12% and then closed up about 1.6%, setting a record high.

Germany's DAX 30 index closed up 1.57%. France's CAC 40 index closed up 0.02%. The UK's FTSE 100 index closed up 0.31%.


- Stocks

Among individual stocks, wage conflicts escalated. The German union announced that about 66,000 Volkswagen workers participated in the strike, and Volkswagen closed down 0.07%.


- Treasury

The French government's financing costs reversed in a V-shape, and German bond yields generally fell by more than 5bp. Investors worried about the stability of the French government sought safe havens in German bonds.


- FX

The market is worried about the stagnation of eurozone growth and the collapse of the French government. The euro fell as much as 1.1%


Cryptocurrency Market

  1. Bitcoin futures fell 2.00% at the end of the trading day to $96,400.
  2. Ethereum rose 1.07% at the end of the trading day to $3,670.50.
  3. Ripple XRP (spot) rose 26.9% in the last 24 hours.
  4. Cryptocurrency stocks fell more than rose. Bitdeer Technologies closed down 3.01%, Canaan Technology closed down 1.89%. MicroStrategy closed down 1.85%. The latest documents show that MSTR has purchased more than $13.5 billion in Bitcoin since November 11 and currently holds about $38 billion in Bitcoin. Cryptocurrency exchange Coinbase closed up 2.09%.


Macro

  1. The market expects the European Central Bank and the Federal Reserve to accelerate the pace of interest rate cuts. The US ISM manufacturing data in November continued to shrink but increased more than expected, driven by the return of new orders to expansion. The eurozone service and manufacturing PMIs both shrank in November, new orders fell for six consecutive months, and corporate confidence was the lowest in a year.
  2. French Prime Minister Barnier bypassed parliament to forcefully approve the budget, and both the far-right National Rally and the left-wing parties threatened to launch a no-confidence vote, and the dissolution of the French government was almost certain. French stocks and the euro both fell by more than 1% at one point, and investors flocked to German bonds for risk aversion. The French-German 10-year government bond yield spread once widened by 8 basis points to 89bp, the largest increase since June and close to the widest in twelve years.
  3. Bank of Japan Governor Kazuo Ueda hinted that a rate hike is "imminent", and overnight index swaps show that the probability of a rate hike in Japan in December is 60%, and the probability of a rate hike before the end of January next year is close to 90%.


Stocks to Focus

  1. Stellantis, the world's third largest traditional automaker, saw its European and US stocks fall by more than 6% following news that its CEO had resigned
  2. Disney closed down 0.26%. Disney's movie "Moana 2" earned $221 million in North American weekend box office during the five-day Thanksgiving weekend, setting a new record for the same period


Tracking Gold

The dollar and U.S. bond yields rose together, causing a general decline in precious metals and London industrial metals. Spot gold fell as much as 1.2%, weakening the momentum of the four consecutive trading days last week, but geopolitical uncertainties partially narrowed the decline.

COMEX gold futures February contract fell 0.73% to $2,661.60 per ounce in late trading. Spot gold fell as much as 1.2% during the session, approaching $2,620, and fell 0.15% in late trading to $2,639.08 per ounce.