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ADDX Go Market Morning Wrap - 6th Dec

Go Wire
Go Wire
December 6, 2024
GoGPT Summarizes Articles



Market Key Focus

US Market

- Markets

U.S. stocks fell across the board and closed at their daily lows, with small-cap stocks leading the decline. Consumer discretionary, energy, utilities, financials and consumer staples sectors rose, while materials, healthcare and industrials sectors fell.


- Stocks

In terms of investment research strategy, Wells Fargo's securities company predicts that thanks to the macroeconomics and monetary policy, US stocks will continue to rise, and the S&P 500 index is expected to reach 7007 points by the end of next year, up 15% from Wednesday's closing price of 6086 points.


- Treasury

U.S. Treasury yields rose and then fell back, with short-term bond yields rising even more in early trading, with the two-year yield rising by more than 5bp at one point.


- FX

The number of first-time claims for unemployment benefits in the United States last week exceeded expectations, and the dollar index fell by about 0.6% on the eve of non-farm payrolls


The US dollar index fell below 106 to a one-week low


Asian Market

- Markets

Japan and Taiwan saw gains in their stock benchmarks, while indexes in China and Hong Kong declined. South Korean equities fell as the ruling party attempted to block President Yoon Suk Yeol’s potential impeachment ahead of a motion expected on Saturday.

Singapore’s Straits Times Index was poised for a record close, bolstered by renewed optimism in the banking sector and Robinhood Markets Inc.’s announcement of plans to expand into Asia, using Singapore as its regional base. The Straits Times Index is Southeast Asia’s top-performing gauge this year, up 18%.


- FX

South Korea launched a 40 trillion won market stabilization fund. The South Korean finance minister said that martial law had a very limited impact on financial markets.

The won fell 0.2% and the South Korean ETF fell more than 1%.

Dovish members of the Bank of Japan called for caution when raising interest rates. However, Toyoaki Nakamura, a member of the Bank of Japan's review committee, said he did not oppose the rate hike, and the yen strengthened.


European Market

- Markets

The pan-European index rose for six consecutive days to its highest level in more than a month since October 28, with bank stocks and tourism stocks rising by more than 2% leading the gains. The German stock index closed up more than 0.6%, hitting a record high for four consecutive days, and the French stock market reached its highest level in more than three weeks.

Germany's DAX 30 index closed up 0.63%. France's CAC 40 index closed up 0.37%.


- Stocks

Oil giant Shell and Norway's Equinor jointly created the UK's largest independent oil and gas company, and Shell's European stocks closed down more than 1%


- Treasury

As the situation became clearer, investors unwound safe-haven buying tied to the political situation in France, sending the two-year German bond yield up about 7bp.


- FX

The euro rose 0.73% against the U.S. dollar to 1.0588, the pound rose 0.47% against the U.S. dollar.

Goldman Sachs recommends going long USD/SEK to hedge interest rate and trade war risks. Goldman Sachs expects foreign exchange volatility to intensify next year, and tariffs will become the main tool in policy negotiations, which will have a significant impact on the foreign exchange market.


Cryptocurrency Market

  1. Trump nominated cryptocurrency-friendly Paul Atkins as SEC chairman. Bitcoin broke through $100,000 for the first time in history, approaching $104,000 before falling back. Early Friday morning in the Asian session, Coinmarketcap data showed that Bitcoin dived more than $13,000 from its historical high, approaching $90,000 before rebounding sharply.
  2. Bitdeer Technologies rose more than 21.2% and closed up 5.6%, Hut 8 rose more than 12% and closed up 2.37%. MicroStrategy rose nearly 9.6% and closed down 4.83%. Hedge funds are chasing MicroStrategy, which has become a popular arbitrage target on Wall Street. Cryptocurrency exchange Coinbase fell more than 3.1%


Macro

  1. The US job market continues to cool steadily, with 224,000 first-time unemployment claims last week, higher than expected. The market awaits US non-farm payrolls data, which is expected to increase by 12,000 to 214,000, and the unemployment rate to rise from 4.1% to 4.2%. This year's voting committee member, San Francisco Fed President Daly, said that the FOMC is not in a hurry to cut interest rates and needs to continue to calibrate monetary policy with caution.
  2. OPEC+'s production increase plan was postponed to April next year, and international oil prices turned to fall.
  3. According to CCTV, French President Macron accepted the resignation of Prime Minister Barnier, and more than half of the respondents hoped that Macron would resign. French far-right leader Marine Le Pen said that the new French prime minister may be appointed on Thursday night and the 2025 budget will be passed in the next few weeks. As the situation becomes clearer, France will not face a government shutdown. Analysts say that France is different from Greece and may not face a debt crisis. The euro rebounded, French stocks hit a three-week high, and investors' safe-haven buying in European and American bond markets receded. The premium of French 10-year government bond yields over German bonds narrowed to 77.2bp, a two-week low.


Stocks to Focus

  1. TD Bank closed down 6.71%. The group suspended its mid-term financial targets and said it would face challenges in achieving profit growth in 2025
  2. Eli Lilly closed down 0.51%. The company invested $3 billion to expand several factories in Wisconsin, USA, to cope with the surge in demand for weight loss drugs. It was reported that Trump hosted pharmaceutical company CEOs at Mar-a-Lago. Pfizer closed up 1.86%
  3. Buffett's beauty company Ultra's same-store sales unexpectedly increased, and it raised the lower end of its full-year sales guidance range. Its stock price rose by 9% after the market
  4. Most airline stocks rose. American Airlines raised its Q4 EPS and closed up 16.8%. United Airlines rose 3.21%
  5. "Retail investor leader" Roaring Kitty posted a mysterious computer picture on social media. The retail investor group leader GameStop once jumped 14%
  6. Trump appointed the CEO of financial technology stock Fiserv as the head of the US Social Security Administration. The stock fell by more than 5%