ADDX Go Market Morning Wrap - 12th Dec

 

Market Key Focus

US Market

- Markets

The US CPI was in line with expectations, and investors rushed to buy technology stocks and chip stocks, supporting the Nasdaq to rise by nearly 1.9% to a record high and break through the 20,000 point mark for the first time

 

Futures markets see a 25bp rate cut by the Fed next week as a foregone conclusion

 

- Stocks

Tesla and Google A closed up more than 5%, both hitting record closing highs. Apple fell after hitting a record high. Broadcom cooperated with Apple to develop AI chips and closed up more than 6.6%

 

- Treasury

CPI boosted expectations of a 25bp rate cut. The two-year Treasury yield fell by about 5bp to nearly 4.1% at one point, and the ten-year Treasury yield fell by more than 2bp to a new low for the day. It turned higher in the late trading and hit a new high for the day

 

- FX

The U.S. dollar rebounded in a V-shape and rose for four consecutive days to a two-week high

 

 

Asian Market

- Markets

The Nasdaq Golden Dragon China Index closed down 0.74% at 7050.77 points, falling for the second consecutive trading day.

The FTSE A50 Index Futures closed down 0.01% at 13475.000 points in the consecutive night trading.

 

- FX

Reports said that the Bank of Japan thought it would be okay to wait and raise interest rates, and the yen plunged to 153.

The offshore RMB once fell by more than 340 points and fell below 7.29 yuan.

 

European Market

- Markets

European stocks closed higher on Wednesday, rebounding after an eight-day winning streak ended on Tuesday.

Germany's DAX 30 index closed up 0.34%. France's CAC 40 index closed up 0.39%. Britain's FTSE 100 index closed up 0.26%

 

- Stocks

Media stocks led gains with a 1.4% rise, while retail stocks fell 1.7%, with Zara parent Inditex falling nearly 7%

 

- Treasury

The euro zone's benchmark 10-year German government bond yield rose 0.5bp to 2.127%. The two-year German bond yield fell 1.2bp to 1.952%. The UK's 10-year government bond yield fell 0.5bp. The two-year gilt yield fell 2.6bp.

 

- FX

The euro fell 0.31% against the dollar to 1.0495, and the pound fell 0.16% against the dollar to 1.2750

 

Cryptocurrency Market

Bitcoin rose 5.44% to $102,000 in late trading. The second largest Ethereum rose 4.70% to $3,855.00 in late trading, temporarily unable to break through the $4,000 resistance level

 

Macro

1. Inflation in the United States remained strong. The CPI in November increased by 2.7% year-on-year, higher than the previous value, and increased by 0.3% month-on-month, a seven-month high. The core CPI was the same as the previous value and expectations. The probability of the Federal Reserve cutting interest rates by 25bp in December has almost been fully priced in. The two-year U.S. Treasury yield once hit a new low of the day, falling about 5bp to 4.1%, and the U.S. dollar index fell to a daily low. Spot gold rose by more than 1%. However, the market expects a pause in interest rate cuts in January, and the U.S. dollar and U.S. Treasury yields will subsequently turn higher. The market will also focus on the U.S. PPI inflation in November on Thursday.
2. After the emergency martial law, South Korea's financial industry suffered a series of shocks. The market value of the South Korean stock market evaporated 58 trillion won in three days, and foreign exchange reserves of more than 400 billion US dollars were threatened. Last month, the net sales of 4.154 trillion won were recorded, marking the fourth consecutive month of net selling. South Korean media said that if financial instability is coupled with stagnation of the real economy, South Korea may face an economic crisis. On Wednesday, the won rose 0.25% against the US dollar, and the US-listed ETF EWY rose 2.81%.

 

Stocks to Focus

1. Macy's fell more than 12.5% ​​and closed down 0.84%. The company lowered its fiscal year profit forecast and found major defects in internal control
2. Oreo cookie manufacturer Mondelez International closed up 2.22%. The company approved a new $9 billion stock repurchase authorization. Hershey will reject Mondelez International's acquisition proposal, believing that the other party's offer is too low
3. Adobe's full-year performance guidance was lower than expected, and its stock price fell more than 5% after the market.
4. U.S. health insurance companies fell together, with UnitedHealth Group and Cigna falling 5.6%, and CVS Health falling more than 6% to the lowest level since March 2020. Cigna, the U.S. Senate bipartisan bill may force health insurance companies to divest their pharmacy business within three years
5. GameStop, the leader of "retail investors' group stocks", once rose 12%, and unexpectedly turned losses into profits in the third quarter.