ADDX GO Market Morning Wrap - 7th Feb

Stock Market

Global markets closed on February 6, 2025 with mixed results: Nikkei 225 advanced 0.61% to close at 39,066.53, Hang Seng surged 1.43% reaching 20,891.62, and STI in Singapore edged up 0.39% to 3,830.42. In contrast, emerging markets were less robust as IDX Composite in Indonesia fell 2.12% to 6,875.54, while India’s NIFTY 50 and Sensex declined by 0.39% and 0.27% to 23,603.35 and 78,058.16 respectively.

U.S. indices showed modest shifts as the S&P 500 climbed 0.36% to 6,083.57 and the Nasdaq gained 0.51% to 19,791.99; however, the Dow Jones Industrial Average fell 0.28% to 44,747.63 and the Russell 2000 slipped 0.39% to 2,307.12.

Key Events

On Thursday, oil prices surged by over 1% during the day following Saudi Aramco's significant price hike for Asian markets. Reports indicate that Saudi Arabia increased the price of its flagship Arab Light crude for March deliveries by $2.40 per barrel, marking the largest single increase since August 2022. As a result, the selling price will now carry a $3.90 per barrel premium over the benchmark price. Later, after the U.S. stock market opened on Thursday morning Eastern Time, President Donald Trump announced that Interior Secretary Doug Burgum and Energy Secretary Chris Wright would work together to boost oil production and lower prices. "We will drive oil prices down, and everything else will follow," Trump stated.
$AMZN Amazon's post-market earnings release on Thursday revealed mixed results. Despite exceeding expectations for the holiday quarter, the company's weak Q1 outlook caused its stock to plummet over 7% in after-hours trading. Additionally, Amazon's Q4 capital expenditure far exceeded analyst estimates, reaching a record high. The company anticipates its capital expenditures to reach $105 billion in 2025, reflecting its aggressive investment in AI business expansion.
Pharmaceutical giant Eli Lilly $LLY reported mixed Q4 earnings, surpassing Wall Street's profit expectations but falling short on Tirzepatide sales projections.
Late Thursday, Chinese EV manufacturer BYD (002594.SZ) saw its A-shares hit the daily limit, adding over 80 billion RMB in market value. This rally also lifted other intelligent driving-related stocks, such as Universe Optics and Shiyun Circuit, which also hit their daily limits. In the Hong Kong market, BYD shares (01211.HK) soared over 11%, closing at HKD 315.8. The surge came ahead of BYD’s highly anticipated "God’s Eye" intelligent driving system launch event scheduled for February 10. Reports indicate that BYD plans to roll out "God’s Eye" to models priced around 100,000 RMB, a move expected to boost its sales and disrupt the entire smart driving industry.
Tesla $TSLA has begun hiring for multiple robotics-related positions as it prepares for mass production of its Optimus humanoid robot at its Fremont factory in California. During Tesla’s earnings call on January 30, CEO Elon Musk reaffirmed his belief in Optimus' commercial potential, stating that it could generate over $10 trillion in revenue, surpassing Tesla’s automotive business and becoming the company's primary revenue driver.
Both Goldman Sachs and Deutsche Bank released research reports highlighting China's mid-term market potential, forecasting continued bullish momentum. The reports emphasized that the emergence of Deepseek is a key catalyst for the Chinese stock market’s upward trajectory, encouraging investors to increase their exposure to Chinese assets.
Meanwhile, image-sharing social media platform Pinterest $PINS released its Q4 and full-year financial results for fiscal 2024 after the market closed on Thursday. The company reported Q4 revenue of $1.154 billion, an 18% increase from $981 million in the prior-year period. Net income surged to $1.847 billion, marking an 818% year-over-year increase from $201 million. Pinterest shares jumped nearly 20% in after-hours trading following the announcement.

Forex

On Thursday, the U.S. Dollar Index inched up by 0.12%, settling at 107.71.

Key Events

U.S. initial jobless claims for last week came in at 219,000, slightly exceeding expectations but still hovering near historic lows. U.S. Treasury yields edged higher, with markets closely watching Friday’s nonfarm payrolls report, which is expected to show 169,000 new jobs for January, down from 256,000 in December, while the unemployment rate is projected to remain at 4.1%.
U.S. Treasury Secretary Bessent stated that the Trump administration aims to maintain a strong dollar. She affirmed that the Treasury's debt issuance strategy remains unchanged, with no planned changes in government bond issuance and that the U.S. government will never default on its debt.
The Bank of England (BoE) cut interest rates by 25 basis points, as expected, but warned that inflation could rebound sharply this year. Despite raising its inflation forecasts and emphasizing a cautious approach, the British pound fell 1% against the U.S. dollar as traders anticipated more rate cuts ahead. Notably, all policymakers unanimously agreed on the rate cut, with two members advocating an even larger 50-basis-point reduction. This dovish stance has led markets to price in three more 25-basis-point rate cuts by the BoE this year.

Cryptocurrency

Late Thursday, major digital assets mostly declined, with Bitcoin (BTC-USD) dropping below $97,000.

Key Events

Federal Reserve Governor Waller, when asked about a potential Bitcoin strategic reserve, stated that "The Fed would not run such a thing."

Stock Market

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Forex

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Cryptocurrency

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Market Events and Most Anticipated Earnings Releases