Market Highlights 💡 - 28 November 2024

Wall Street breaks its winning streak due to inflation data; Chinese stock markets rebound following new stimulus policies from Beijing.

🇺🇸 S&P 500: -0.37% 📉

🇺🇸 Nasdaq: -0.60% 📉

🇪🇺 Stoxx 600: -0.19% 📉

🇯🇵 Nikkei 225: -0.80% 📉

🇭🇰 Hang Seng: 2.32% 📈

🇨🇳 CSI 300: 1.74% 📈

🇸🇬 Straits Times Index: -0.12% 📉

U.S. Markets Retreat: The S&P 500 and Nasdaq fell by -0.4% and -0.6%, respectively, due to a sharp drop in tech stocks, amid concerns that the Federal Reserve may take a cautious stance on rate cuts following strong inflation data.

U.S. Core PCE Price Index rose 2.8% year-on-year in October, in line with expectations and higher than the 2.7% rise in September, driven by services prices, reflecting a surge in portfolio management fees alongside rising stock prices.

Q3 2024 U.S. GDP expanded at an annualized rate of 2.8%, matching expectations (Q2 was 3%), driven by strong consumer spending (up 3.5%) and steady business investment.

First-time Jobless Claims for the week ending November 23 fell by 2K to 213K (market expectation: 216K), from 215K, but many laid-off workers are struggling to find new jobs, leaving room for the Fed to consider another rate cut in December.

Asia-Pacific Markets Optimistic: The Hang Seng and CSI 300 indices rose by 2.3% and 1.7%, respectively, after China's industrial profit report alleviated concerns over the strength of China's economic recovery, with investors betting that Beijing will introduce more stimulus before key economic meetings.

China's Industrial Profits (YTD) from January to October fell 4.3% year-on-year (down 3.5% in September), but October's losses improved, declining by -10%, compared to September's loss of -27.1%, driven by growth in high-tech and equipment manufacturing sectors.

💡 Upcoming Events: 💡

Friday: Flash CPI and Core CPI YoY for the EU; Japanese Consumer Confidence Index and Unemployment Rate will be in focus for investors.

By the end of this week, Saturday will bring Japan's Retail Sales YoY and China's National Bureau of Statistics Manufacturing and Non-Manufacturing PMI.

💡 Things to Know Today: 💡

1. Trade Lawyer Jamieson Greer appointed U.S. Trade Representative, outlining a tough “strategic decoupling” stance with China, proposing the removal of trade privileges and imposing higher tariffs to counter China's dominance in global industries and protect U.S. jobs.

Jamieson Greer

2. U.S. and France broker a ceasefire between Israel and Hezbollah, marking a significant diplomatic milestone and ending months of deadly conflict on the Israel-Lebanon border. The Lebanese army will take control of the area, and Israel will begin a gradual troop withdrawal over the next 60 days.

Lebanese Army

3. Dell $Dell Technologies Inc.(DELL)$   and HP $HP Inc(HPQ)$  reported lackluster quarterly earnings, highlighting the stagnation of the personal computer market. Both companies’PC revenues fell short of expectations as AI-optimized products failed to offset weaker consumer demand and slower corporate upgrades.

Dell HP

4. Following cybersecurity vulnerabilities and complaints from competitors like Zoom $Zoom(ZM)$   and Salesforce $Salesforce.com(CRM)$ , the FTC launched an extensive antitrust investigation into Microsoft $Microsoft(MSFT)$ , focusing on its cloud computing, software licensing, cybersecurity, and AI practices.

Microsoft

5. China's Vice President Han Zheng at the China International Supply Chain Expo called for strengthened cooperation and urged global collaboration to stabilize international supply chains, emphasizing openness and rejecting "decoupling" amid escalating U.S. tariff threats.

Han Zheng

✅ Key Takeaways:

Chinese market sentiment remains weak due to concerns over less-than-expected fiscal stimulus and increased tariff risks. The strength of China's fiscal policy and overall economic performance will remain key factors in determining the market's direction.

@Daily_Discussion  @TigerStars  @Tiger_comments  @TigerGPT