ADDX GO Market Morning Wrap - 3rd June

Stock Market

On Monday, Eastern U.S. Time, despite the renewed intensification of trade tensions, the market still advanced, and the three major indices closed higher collectively. Benefiting from the rise of technology stocks led by Meta, the Nasdaq index led the gains among the major stock indices.

 

At the close, the Dow Jones Industrial Average rose 0.08% to 42,305.48; the S&P 500 Index rose 0.41% to 5,935.94; and the Nasdaq Composite Index rose 0.67% to 19,242.61.

 

Last week, President Trump escalated the trade war again. He announced that the tariffs on imported steel and aluminum would be raised from 25% to 50%, effective this Wednesday.

 

This news hit auto stocks. The share prices of Ford and General Motors both fell 3.9% on Monday.

 

However, steel stocks rose sharply due to the tariff increase. The share price of Cleveland-Cliffs soared 23%, and those of Steel Dynamics and Nucor both rose 10%.

 

Regarding other global markets, the Nikkei 225 index fell 1.30%, and the IDX Composite index fell 1.54%. Malaysia was closed for a day due to the birthday of the Yang di-Pertuan Agong, and South Korea will also be closed today due to the presidential election.

Global Hotspots

• The EU Drafts the 18th Round of Sanctions Against Russia, Mainly Targeting Russia's Energy Revenue: The European Commission said in a statement on the 2nd that the EU is formulating the 18th round of sanctions against Russia, with a focus on Russia's energy revenue. The new round of sanctions will cover the "Nord Stream" infrastructure, the Russian banking sector, and further lowering the price cap on crude oil.
• The EU Warns That It May Accelerate Tariff Retaliation Against the United States: The EU is preparing for a new round of trade negotiations with the United States and warns that if Trump enforces the latest tariff threats (including a 50% import tariff on steel and aluminum), the EU may accelerate its retaliatory actions against the United States.
• Formal Voting Begins in South Korea's Presidential Election, with 5 Candidates Competing for the Presidency: The formal voting for the 21st South Korean presidential election officially kicked off at 6:00 local time on June 3. A total of 14,295 polling stations were set up across South Korea. Voters who did not participate in the early voting can go to the designated polling stations with their identification documents to vote. Voting will end at 20:00 local time on the same day.
• The Second Round of Russia-Ukraine Negotiations Ends, and Both Sides Issue Statements! Ukraine Launched Operation "Cobweb" the Day Before: On June 2 local time, the delegations of Russia and Ukraine began the second round of direct negotiations in Istanbul, Turkey, on the peaceful settlement of the Russia-Ukraine conflict. Previously, many places in Russia were attacked. Bridges were blown up, and airports were raided, resulting in multiple deaths.

Company News

• BioNTech Soars 18%: Multinational pharmaceutical giant Bristol Myers Squibb announced on Monday that it has reached a licensing agreement with German biotech company BioNTech regarding the next-generation anti-cancer drug BNT327. The milestone payments under the agreement could reach up to $11.1 billion. If the new drug is successfully launched, the two companies will split global profits equally.
• Elon Musk's xAI Reportedly Launches a $300-Million Share Sale, with a Valuation of Up to $113 Billion: According to media reports citing sources, xAI, the artificial intelligence company owned by the world's richest man, Elon Musk, is conducting a share sale worth $300 million. This transaction values the company at $113 billion.

Forex & Commodities

WTI crude oil futures closed at $62.52 per barrel, up $1.73, or 2.85%. Brent crude oil futures closed at $64.63 per barrel, up $1.85, or 2.95%.

 

COMEX gold futures closed up 2.74% at $3,406.4 per ounce, and COMEX silver futures closed up 5.76% at $34.93 per ounce.

 

At the close in New York, the U.S. Dollar Index fell 0.75% to 98.69, and most non-U.S. currencies rose.

Key Events

• The United States Lifts a Ban on 13 Million Acres in Alaska! 8.7 Billion Barrels of Oil Reserves Are About to Be Unlocked: The U.S. government recently announced plans to revoke the federal protection measures implemented by the Biden administration in the Alaskan wilderness area. This decision will reopen the area for oil drilling and mineral extraction activities.Interior Secretary Doug Burgum said that the previous administration's ban on oil and gas drilling in more than half of the National Petroleum Reserve in Alaska last year exceeded its authority. It is reported that this ban covered approximately 13 million acres in the reserve.

Cryptocurrency

Bitcoin was down 0.7% at $104,399, and the 24-hour trading volume of the cryptocurrency surged 25.8% to $44.68 billion.

 

Ethereum (ETH-USD) was up 0.4% to $2,529.

 

XRP (XRP-USD) lost 0.2%, BNB (BNB-USD) gained 0.8%, and Solana (SOL-USD) fell 2.3%.

 

Dogecoin (DOGE-USD) declined 1.2%, and Cardano (ADA-USD) was down 0.9%.

 

The total market value of the cryptocurrency industry fell 0.6% in the past 24 hours to $3.26 trillion, with trading volume up 14.6% to $99.78 billion.

Key Events

• The U.S. Securities and Exchange Commission decides to drop the lawsuit against Binance: Meta Shareholders Overwhelmingly Oppose the Proposal to Include Bitcoin in Reserves: Shareholders of Meta Platforms (META.US) voted against the proposal to include Bitcoin in the company's financial reserves at last week's annual meeting. More than 4.9 billion shares voted against it, while only 3.92 million shares were in favor.