Wall Street remained flat as Middle East conflicts heightened market volatility; the Hong Kong Hang Seng Index continued its upward trend.
πΊπΈ S&P 500: 0.02%
πΊπΈ Nasdaq: 0.09%
πͺπΊ Euro Stoxx 600: 0.05%
π―π΅ Nikkei 225: -2.18%
ππ° Hang Seng: 6.20%
π¨π³ CSI 300: Market Closed
πΈπ¬ Straits Times Index: 0.10%
US stock markets were flat, with the S&P 500 and Nasdaq slightly rising by 0.02% and 0.09% respectively. Technology stocks recovered while cautious sentiment lingered over Middle East tensions, awaiting the highly anticipated non-farm payroll data set to be released this weekend.
The Hang Seng Index surged 6.2%, buoyed by strong momentum from stimulus measures and BlackRock's positive outlook on market recovery, acting as a new catalyst. BlackRock modestly increased its positions at attractive valuation levels, indicating that investors should expect the government to introduce more significant measures in this cycle.
Upcoming Events:
On Thursday, investors will focus on US unemployment claims, S&P Global and ISM services PMI final values, and Eurozone services PMI final values.
By the end of this week, we will see the release of US non-farm payroll numbers and the unemployment rate.
Things to Know Today:
1. With escalating tensions in the Middle East, there are signs of adequate oil supply as OPEC+ plans to restore some idle production capacity, expected to increase stockpiles starting in December. Meanwhile, US government data showed an unexpected increase in oil inventories, rising by 3.9 million barrels last week, the largest increase in five months. Significant hits to Iran's oil export capabilities could reduce market supply by 1.5 million barrels daily. $Exxon Mobil(XOM)$ $Occidental(OXY)$ $ProShares UltraPro 3x Crude Oil ETF(OILU)$
Oil Supply
2. Tesla's $Tesla Motors(TSLA)$ stock plummeted 6% overnight due to lower-than-expected vehicle deliveries in the latest quarter, just exceeding 463,000, which is up from the previous quarter but about 7,000 short of expectations. This means the company must deliver a record approximately 516,000 vehicles in the fourth quarter, or it risks a decline in annual deliveries.
Tesla
3. Nike's $Nike(NKE)$ stock fell 6% in after-hours trading after the company announced it would withdraw its annual revenue forecast. As the new CEO prepares to take over the sportswear giant, the company faces a holiday season that may be characterized by discounts and weak online traffic. Nike's growth has recently stalled under pressure from more agile competitors like On and Deckers' Hoka.
Nike
4. Following stimulus measures, global hedge funds have flocked to the Chinese stock market, leading to the strongest weekly buying volume on record by the end of the third quarter of 2024, primarily driven by long positions, particularly in individual stocks within the consumer, industrial, financial, and information technology sectors. According to LSEG Lipper data, foreign ETF inflows into Chinese stocks reached $2.4 billion over the last three trading days in September.
China Stimulus
5. China's stimulus measures have boosted the prices of key metals, especially those heavily reliant on Chinese demand, such as iron ore, which accounts for about 70% of global seaborne imports, mainly from Australia and Brazil. Prices for this critical steelmaking raw material have surged on domestic exchanges in China and in Singapore, where global investors trade major contracts.
Key Points:
This week is data-heavy, with the US labor market in focus as the market remains volatile. So far, despite signs of gradual weakening, reports indicate that the labor market is stabilizing, which may alleviate some investor concerns. Investors are still focused on the September non-farm payroll data to be released on Friday.
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Comments
Here are the market highlights for October 3, 2024:
Wall Street remained relatively flat as market volatility increased due to heightened conflicts in the Middle East.
The US stock market saw modest gains, with the S&P 500 and Nasdaq rising by 0.02% and 0.09% respectively.
The Hong Kong Hang Seng Index continued its upward trend, surging by 6.20%.
The Euro Stoxx 600 also saw a slight increase of 0.05%, while the Nikkei 225 in Japan experienced a decline of 2.18%.
The CSI 300 in China was closed for the day, and the Straits Times Index in Singapore rose by 0.10%.
The market sentiment remained cautious due to the ongoing tensions in the Middle East. Investors were also awaiting the release of the highly anticipated non-farm payroll data set to be released over the weekend. Technology stocks showed signs of recovery.
Upcoming events that investors will be focused on include US unemployment claims, S&P Global and ISM services PMI final values, and Eurozone services PMI final values.
In terms of recent market trends, the US stock market experienced the strongest weekly buying volume on record by the end of the third quarter of 2024. This was primarily driven by long positions, particularly in individual stocks within the consumer, industrial, financial, and information technology sectors.
Foreign ETF inflows into Chinese stocks reached $2.4 billion over the last three trading days in September, as investors continue to show interest in the Chinese market.
China's stimulus measures have had a positive impact on key metals prices, particularly iron ore. This is driven by Chinese demand, as China accounts for about 70% of global seaborne imports of iron ore.
Overall, this week is data-heavy, with a focus on the US labor market as the market remains volatile. Reports indicate that the labor market is stabilizing, which may alleviate some investor concerns. The September non-farm payroll data, scheduled for release on Friday, will be closely watched.
Please note that this information is for reference purposes only and should not be considered as investment advice. Investing in the stock market involves risks, and it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
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