US Markets
Fundamental Analysis:
On Tuesday, all three major US markets closed higher, with the Dow Jones and S&P 500 both setting new all-time intraday and closing highs.
The Federal Reserve’s November meeting minutes indicated that officials expect future rate cuts, but these will likely be gradual. Markets are also weighing the latest tariff threats from US President-elect Donald Trump.
The Federal Reserve’s November meeting minutes were released early Wednesday morning Beijing time. The minutes showed that most Fed officials support a cautious approach to future rate cuts, as long as the economy remains stable and inflation continues to cool slowly.
The minutes stated, “Participants expect that, if the data remains in line with expectations and inflation continues to decline toward 2%, while the economy stays close to full employment, it may be appropriate to gradually shift toward a more neutral policy stance over time.”
The minutes also revealed that some officials believe the Fed may pause rate cuts if inflation rises again, keeping borrowing costs at restrictive levels. Earlier this month, Fed Chairman Jerome Powell stated that the economy had not yet shown signs that would require an urgent rate cut. The Fed’s final meeting of 2024 will take place on December 17-18.
In addition, markets are closely monitoring President-elect Trump’s latest tariff proposals, which include a 25% tariff on goods from Canada and Mexico. Goldman Sachs Chief Economist Jan Hatzius noted in a report that these proposed tariffs would significantly increase US consumer prices. Historically, if such tariff increases are implemented, core PCE inflation could rise by 0.9%.
Stock Market Overview
Large-cap tech stocks generally rose, with Amazon up over 3%, Microsoft gaining more than 2%, and Meta rising over 1%. Nvidia, Netflix, Apple, and Google saw modest increases, while Tesla experienced a slight decline. US auto stocks, however, fell under the threat of new tariffs.
General Motors plunged nearly 9%, Stellantis dropped about 6%, and Ford slid almost 3%. Weight loss drug stocks saw strong gains, with Eli Lilly up over 4%, Viking Therapeutics rising nearly 3%, and Novo Nordisk climbing almost 2%, after President Biden proposed including weight-loss drugs in Medicare and Medicaid coverage.
The Nasdaq Golden Dragon China Index closed down 0.84%, with most major Chinese stocks in the US showing declines. Nio dropped over 7%, iQIYI fell more than 4%, and Li Auto dropped over 2%. Pinduoduo, Bilibili, and XPeng also dropped over 1%.
Technical Analysis:
Market Trends:
- Dow: +123.74 points (+0.28%), closing at 44,860.31
- Nasdaq: +120.74 points (+0.63%), closing at 19,175.58
- S&P 500: +34.26 points (+0.57%), closing at 6,021.63
Hong Kong Stock Market
Fundamental Analysis:
The three major Hong Kong stock indexes opened lower but rebounded later in the day. Technology stocks generally performed well, with Meituan and JD.com up over 2%, and NetEase rising more than 1%. Most auto stocks fell, with Nio dropping nearly 5%.
The release of 550 million shares of Auto Street saw its stock price plunge over 38%. The biotechnology sector showed strong gains, with Keji Pharma rising more than 9%, while wind power stocks led the gains, with Goldwind Technology climbing over 6%.
SF Express rose 0.15% on its first trading day. During the public offering phase, SF Express was oversubscribed by 79.07 times, with 31.45 million shares offered, accounting for about 18.5% of the total offering.
In the international placement phase, the company was oversubscribed by 10.10 times, with 138.6 million shares placed, representing 81.5% of the total.
Technical Analysis:
Technical Analysis:
- Hang Seng Index: +0.42%, closing at 19,239.85
- Hang Seng Tech Index: +0.82%, closing at 4,256.40
- Hang Seng China Enterprises Index: +0.37%, closing at 6,876.90
FTSE China A50 Index
Fundamental Analysis:
The three major A-share indexes opened higher, with total market turnover reaching 908 billion yuan at midday, up by 47.7 billion yuan compared to the previous day. Over 2,100 stocks were up across the market.
Among sectors, IP economy, defense electronics, liquor, family doctor, and airport shipping stocks saw the biggest gains, while sectors like agriculture, chemicals, logistics, and non-ferrous metals experienced declines.
The IP economy concept stocks continued to perform well, with Hengxin Oriental, Guangbo Shares, Hongxing Shares, and Huali Technology all hitting their daily limits.
The defense electronics and satellite navigation sectors saw strong mid-day surges, with Huaru Technology hitting a 20% limit up, followed by stocks like CiscoRay, Zhimingda, and Mingsheng Electronics.
The chemical sector adjusted lower, with stocks like Liuguo Chemical and Sanwei Chemical hitting their daily limits down, while Yunnan Tin, Tianhe Co., and Hongxing Development led the declines.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: +0.52%, closing at 3,276.58
- Shenzhen Component Index: +0.96%, closing at 10,431.97
- ChiNext Index: +1.37%, closing at 2,179.55
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
