ADDX Go Market Morning Wrap - 10th Dec

Market Key Focus

US Market

- Markets

The S&P 500 closed down 37.42 points, or 0.61%, at 6052.85.

The Dow Jones Industrial Average, which is closely related to the economic cycle, closed down 240.59 points, or 0.54%, at 44401.93.

The Nasdaq, which is dominated by technology stocks, closed down 123.08 points, or 0.62%, at 19736.69.

The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed down 0.67%.

The VIX index of fear closed up 11.04% at 14.18.

- Stocks

China's State Administration for Market Regulation launched an antitrust investigation into Nvidia. Nvidia fell as much as 3.7%, dragging down the chip stock index and the Nasdaq. The Nasdaq 100 fell 0.84%, leading the decline.

After Americans' inflation expectations rose, the three major U.S. stock indexes accelerated their decline and closed near the daily low. The popular stock AppLovin plunged more than 15%, and Apple hit a new high.

Utilities and financial industries led the decline, while healthcare, real estate and materials industries led the gains.

- Treasury

Investors focused on rising oil prices and U.S. Treasury supplies this week, with the 10-year Treasury yield rising more than 4bp

- FX

The dollar rose slightly as markets awaited U.S. November CPI inflation data on Wednesday

Asian Market

- Markets

South Korean stocks closed down across the board, with the Korea Kospi index closing down 2.8% and the Korea KOSDAQ index closing down 5.05%.

Chinese assets surged, with the FTSE China A50 Index futures continuing to rise, up 4%. The 3x long FTSE China ETF-Direxion rose nearly 16%, and the 2x long CSI 300 ETF-Direxion once rose more than 10% in the night session.

- Stocks

The China Concept Index closed up more than 8.5%, leading the way. The FTSE China 3x Long ETF closed up 23.78%, and Fangdd closed up 52.23% after rising more than 166%.

- FX

The Japanese yen fell below 151.

The won fell more than 0.5% on Monday, approaching the bottom of 1,444 won in recent days. On Monday, the South Korean Ministry of Justice banned President Yoon Seok-yeol from leaving the country, the ruling party to which the president belongs set up a task force to stabilize the situation, and the prosecution applied for an arrest warrant against former Defense Minister Kim Yong-hyun. South Korea's main opposition party seeks to pass the budget and related bills on Tuesday.

The offshore RMB rose by more than 200 points and briefly rose above 7.26 yuan.

European Market

- Markets

The pan-European index closed higher for the eighth consecutive trading day, with the German stock index bidding farewell to its historical high and the French stock index rising by more than 0.7%.

- Stocks

China's potential policy stimulus boosted the rise of luxury stocks. LVMH Group closed up 3.52%, Kering Group rose 3.48%, and Hermès closed up 0.6%. Hermès confirmed that it will increase the price of classic models and may exceed 100,000 yuan.

BP, a British oil company, rose 5% and merged its offshore wind power business with Japanese electric power company JERA to form a new joint venture.

- Treasury

The euro zone's benchmark 10-year German government bond yield rose 1.3bp to 2.121%. The two-year German bond yield fell 0.3bp to 1.998%.

The UK's 10-year government bond yield fell 0.5 bp. The two-year gilt yield fell 1.3bp.

- FX

The euro fell 0.14% against the dollar to 1.0553, and the pound rose 0.05% against the dollar to 1.2751

Cryptocurrency Market

1. Bitcoin fell 4.83% to $97,485.00 in late trading, and once plunged to $94,640.00 in after-hours trading in the U.S
2. Ethereum fell 8.36% to $3,731.50 in late trading, and once fell to $3,498.50 in after-hours trading in the U.S
3. Bitcoin futures fell, and cryptocurrency stocks fell across the board. Bitdeer Technology closed down 1.81%, Hut 8 closed down 10.05%. MSTR closed down 7.51%. The company bought an additional $2.1 billion worth of Bitcoin, announcing an increase in Bitcoin holdings for five consecutive Mondays.

Macro

1. The market is waiting for the US November CPI and PPI inflation data on Wednesday and Thursday, and CPI is expected to rise slightly month-on-month. Traders also expect the European Central Bank to cut interest rates by 25bp on Thursday, while the Canadian and Swiss central banks may cut interest rates significantly, and the Canadian dollar is close to a four-and-a-half-year low.
2. In November, the short-term, medium-term and long-term inflation expectations of U.S. respondents rose slightly across the board. As Trump will implement a series of tax cuts and deregulation measures, Americans' views on household finances have reached their most optimistic level since the beginning of 2020. After the data was released, the three major U.S. stock indexes fell further, and the Nasdaq 100 fell by more than 1% at one point.
3. Boosted by the Politburo meeting, the China Concept Index rose by more than 10%, oil prices rose by more than 2%, European luxury stocks rose across the board, the offshore RMB rose above 7.26 yuan, and the Australian and New Zealand dollars rose. The People's Bank of China resumed gold purchases in November after a six-month suspension, boosting spot gold to a peak of nearly 1.7% during the session.
   

Stocks to Focus

1. Eli Lilly (LLY) board of directors approved a $15 billion stock repurchase and dividend increase plan, and the stock price rose by more than 1% after the market closed
2. Hershey closed up 11%, its best single-day performance since 2016, as rival chocolate maker Mondelez surged on a possible takeover offer
3. Popular stock AppLovin closed down 15%, its biggest single-day drop since August 2022. The company failed to join the S&P 500, and shareholders Chen Herald Yun and Mei Koo applied to sell 50,000 shares.