ADDX Go Market Morning Wrap - 4th Dec

Market Key Focus

US Market

- Markets

In the early trading of the U.S. stock market, the "martial law" incident in South Korea increased risk aversion sentiment, and the U.S. stock market was under pressure for a time. The Nasdaq fell as much as 0.3%, the S&P fell as much as more than 0.2%, and the Dow fell as much as 207 points. After the South Korean president announced that martial law would be lifted, the stock market rebounded, the S&P and Nasdaq closed near the daily high, and the Dow narrowed its losses. The Nasdaq, Apple, and Walmart hit new highs, and the S&P 500 hit its 55th closing high this year

- Stocks

Citi strategists pointed out that as the S&P 500 index hit new highs, US stock shorts are surrendering. Investors' positions on S&P 500 futures are one-sided, and shorts are reduced. At the same time, Euro Stoxx 50 futures positions are net bearish, ETF fund outflows are accelerating, and investors are avoiding European stocks due to sluggish economic and corporate earnings growth and political instability in France and Germany

- Treasury

The safe-haven demand brought about by the South Korean "curfew" incident was short-lived. The yields of European and American bonds hit a new low after the South Korean president announced martial law, and then most of them rebounded in a V-shape. The remarks of Federal Reserve officials raised expectations for interest rate cuts, and the yield on two-year US Treasury bonds fell by more than 5bp at one point

- FX

The US dollar index fell on the night of the South Korean "curfew" farce. The US dollar index DXY fell 0.11% to 106.325 points

The Bloomberg Dollar Index had a small risk-off move after the initial South Korean news, before closing roughly flat

Asian Market

- Markets

After the "martial law" incident in South Korea, the decline of South Korean stocks listed in the United States narrowed. The South Korean ETF (EWY) closed down 1.59%, falling for five consecutive days. It fell 7% to a 52-week low during the session. The South Korean e-commerce Coupang ADR closed down 3.74%, and the South Korean Posco ADR fell more than 4%.

- Stocks

The Nasdaq Golden Dragon China Index closed up 1.16%. The China Technology Index ETF (CQQQ) closed down 1.07%, the China Internet Index ETF (KWEB) closed down 0.1%, and the FTSE China 3x Long ETF (YINN) closed up 1.29%. The FTSE A50 Index Futures closed down 0.16% overnight at 13,339.000 points.

- FX

The safe-haven Japanese yen once rose above 149, the offshore RMB once fell below 7.31 to a one-year low, and the Korean won fell 2.7% to a two-year low before the decline was halved.

European Market

- Markets

European stocks continued to rise, with the German stock index closing up more than 0.4%, setting a new high for the second consecutive day, and closing above the 20,000-point psychological mark for the first time in history. Investors paid attention to the political turmoil in France, and the French stock market gave up its earlier gains and turned down during the session, and finally closed up 0.26%

- Stocks

Samsung Electronics' London share price (SMSN.LI) closed down 3.71%, while Rolls-Royce (RR/.LN) closed up 3.21%, with its closing market value exceeding 50 billion pounds for the first time in history

- Treasury

The euro zone's benchmark German 10-year bond yield rose 2.0bp, ending an eight-day losing streak at 2.05.

The UK's 10-year bond yield rose 3.1bp.

The French 10-year bond yield fell 1.1bp.

- FX

The euro rose 0.11% against the US dollar to 1.0510, once refreshing the intraday high of 1.0535. The pound rose 0.14% against the US dollar to 1.2673.

Cryptocurrency Market

1. Bitcoin futures rose 0.38% to $96,900.00 at the end of trading. South Korean President Yoon Seok-yeol suddenly announced the "martial law" and it fell below $94,000.
2. Ethereum fell 0.19% to $3,657.50 at the end of trading.
3. The Korean cryptocurrency market collectively plunged. Bitcoin BTC traded on the Korean exchange Upbit once fell 30% to $66,500, and Ripple XRP once plunged 60%.

Macro

1. This year's voting member, San Francisco Fed President Mary Daly, said the FOMC could still cut interest rates in December. Fed Governor Kugler said the decision would be made on a meeting-by-meeting basis. Next year's voting member, the big dove, Chicago Fed President Goolsbee, believes that interest rates should still "fall significantly." Traders currently expect the probability of a 25bp rate cut in December to rise to 70.3%
2. The U.S. JOLTS job vacancies in October rebounded and were higher than expected, supporting the Federal Reserve's cautious stance on interest rate cuts. Investors will subsequently focus on the "small non-farm" employment report released on Wednesday, Powell's speech, and the non-farm employment data released on Friday
3. French lawmakers will hold a no-confidence vote on Wednesday, and it is expected that the Barnier government will fall. French President Macron later said that he believed that Marine Le Pen, a member of the far-right party, and the left would not vote to overthrow the government, and French stocks closed higher.

Stocks to Focus

1. U.S. Steel closed down 8.01%, having fallen by about 10% during the session. Trump reiterated his opposition to Nippon Steel's acquisition of U.S. Steel.
2. PSQ Holdings closed up 270.39%. It was reported that Trump's eldest son would join the company's board of directors