Check the latest market quotes. Market analysis focuses on financial policy.
On the macroeconomic front, the full text of the Report of the State Council on Financial Work was released. Regarding the next steps, the Report proposed continuing to implement an appropriately accommodative monetary policy, comprehensively utilizing various tools, and maintaining ample liquidity. It called for exploring the application of artificial intelligence in financial management and services while guarding against model application risks. It also urged expanding the international use of the renminbi and enhancing its international currency functions in pricing, payment, investment, financing, and reserves. The Report emphasized implementing monetary policy tools that support the capital market, supporting Central Huijin Company in playing a quasi-stabilization fund role, broadening medium- and long-term funding sources, channels, and market entry methods, and consolidating and improving the capital market stabilization mechanism. It also stressed maintaining the stable operation of financial markets including stocks, bonds, and foreign exchange.
On the overseas front, US initial jobless claims fell to 189,000 last week, below the market expectation of 196,000 and marking the lowest level since mid-July. US Challenger layoffs in October totaled 43,994, a year-on-year decrease of 71% and the lowest for the same period since 2023. Hiring plans approached 445,000, up 57% year-on-year.
Indices closed in the green. In the spot market, the three major A-share indices closed higher, with the Shanghai Composite Index rising 0.1% to 3,689.91 points and the ChiNext Index gaining 0.87%. By sector, more sectors rose than fell, with power equipment, media, real estate, and light manufacturing leading gains, while only coal, oil and petrochemicals, telecommunications, and banking declined. Market turnover was approximately 2.1 trillion yuan.
Overseas, the three major US stock indices all closed lower, with the Dow Jones falling 3.44% to 51,523.06 points, the S&P 500 dropping 4.36% to 7,353.73 points, and the Nasdaq plunging 5.52% to 24,315 points.
Futures positions were reduced. In the futures market, basis levels for stock index futures rebounded. In terms of trading and open interest, both volume and open interest for stock index futures declined simultaneously.
Strategy
As the market worries that a Democratic sweep of Congress would strengthen AI regulation, US tech stocks underwent a significant correction overnight, dragging all three major indices lower. Currently, domestic and overseas tech chains remain correlated, and the disruption is expected to transmit to the domestic market.
Risks
If domestic policy implementation falls short of expectations, overseas monetary policy exceeds expectations, or geopolitical risks escalate, stock indices face downside risks. Investment consulting business qualification: CSRC License [2011] No. 1289.
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