Market Highlights 💡 - 3 December 2024

Wall Street Hits Historic Highs in December, Boosted by Strong Chinese Manufacturing Data

🇺🇸 S&P 500 Index: 0.26%📈

🇺🇸 Nasdaq: 0.97% 📈

🇪🇺 STOXX 600 Index: 0.67% 📈

🇯🇵 Nikkei 225 Index: 0.80% 📈

🇭🇰 Hang Seng Index: 0.66% 📈

🇨🇳 CSI 300 Index: 0.79% 📈

🇸🇬 Straits Times Index: 0.32% 📈

US stock market closes at record highs, with the S&P 500 and Nasdaq rising by 0.3% and 1.0%, respectively, led by large tech companies, as investors brace for a series of economic data and comments from Federal Reserve speakers.

The US ISM Manufacturing PMI for November 2024 rose to 48.4, exceeding the expected 47.7, indicating a mild contraction in the manufacturing sector.

The Eurozone unemployment rate hit a historic low of 6.3% in October 2024, unchanged from September, in line with market expectations.

Asia-Pacific markets performed strongly on Monday, with the CSI 300 Index rising by 0.8%, as investors reacted positively to strong manufacturing data. The Nikkei 225 Index also rose by 0.8%, driven by strong growth in the tech and banking sectors.

Caixin China's Manufacturing PMI rose from 50.3 in October to 51.5 in November 2024 (forecast: 50.6), benefiting from strong output and new orders growth.

💡 Upcoming Events 💡

The US JOLTS Job Openings data will be released on Tuesday.

On Wednesday, the US will release ADP Nonfarm Employment Change, ISM Services PMI, and China's Caixin Services PMI.

On Thursday, the US will release Unemployment Claims; Europe will release Retail Sales Month-on-Month.

At the end of the week, the US will release Nonfarm Payrolls, Unemployment Rate, and Michigan Consumer Sentiment Index, while Japan will announce its Average Cash Earnings YoY on Friday.

💡 Key Things to Know Today 💡

1. Chinese automakers BYD $BYD COMPANY(01211)$  , Leapmotor $LEAPMOTOR(09863)$  , and Xiaomi $XIAOMI-W(01810)$   exceeded their annual delivery targets ahead of schedule in mid-November, reflecting strong growth and market demand.

Chinese Automakers

2. Super Micro Computer $SUPER MICRO COMPUTER INC(SMCI)$ : "The evidence reviewed by the Special Committee has not raised concerns regarding the integrity of Super Micro's senior management or audit committee, nor has it raised any significant concerns about their commitment to ensuring the accuracy of the company's financial statements."

Supermicro

3. Federal Reserve Governor Christopher Waller: "Based on the economic data and forecasts currently available, inflation will continue to decline toward 2% in the medium term, and I am inclined to support a rate cut at the December meeting."

Christopher Waller

4. The US launched its third crackdown on China's semiconductor industry in three years, restricting exports to 140 companies, including Naura Technology, Piotech, ACM Research, and SiCarrier, targeting chip tools and advanced memory chips.

US vs China chip

5. Intel $Intel(INTC)$  CEO Pat Gelsinger resigned, with the board expressing concern over the slow progress of his turnaround plan; leadership will be temporarily handed to two executives.

Intel CEO resigned

✅ Key Takeaways:

Investors are weighing concerns over stagnating progress on inflation, while US manufacturing activity showed improvement in November. Key employment data is expected to be released later this week.

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