To The Moon

Energy supply concerns ease, Wall Street stocks rise; Nikkei 225 index rises after the election.

🇺🇸 S&P 500 Index: 0.27% 📈

🇺🇸 Nasdaq Index: 0.26% 📈

🇪🇺 Stoxx 600 Index: 0.43% 📈

🇯🇵 Nikkei 225 Index: 1.82% 📈

🇭🇰 Hang Seng Index: 0.05% 📈

🇨🇳 CSI 300 Index: 0.20% 📈

🇸🇬 Straits Times Index: -0.26% 📉

The U.S. stock market saw slight gains, with the S&P 500 and Nasdaq Composite both rising by 0.3%, as Israel's retaliation against Iran avoided energy facilities, alleviating supply concerns, while investors prepared for a busy earnings week.

In the Asia-Pacific region, markets generally rose, with the Nikkei 225 rebounding by 1.8% after the ruling party in Japan lost its majority in the weekend elections, while the Chinese market closed flat as investors assessed the prospects for further stimulus after weak industrial profit reports.

In the first nine months of 2024, China's industrial profits fell by 3.5% year-on-year to 5,228.16 billion yuan, reversing last month's 0.4% growth, with profits shrinking in both state-owned and private sectors.

💡 Upcoming Events: 💡

On Tuesday, Japan's unemployment rate and U.S. central bank consumer confidence index will be released.

Japan's consumer confidence index and U.S. GDP estimates will be released on Wednesday.

On Thursday, China's manufacturing and services PMI, Japan's central bank interest rate decision, Eurozone CPI preliminary annual rate, U.S. core PCE index, and unemployment claims will be announced.

Investors will look forward to the release of U.S. average hourly earnings, non-farm payrolls, unemployment rate, ISM manufacturing PMI and China's Caixin Manufacturing PMI on Friday.

💡 Things to Know Today: 💡

1. Japan's ruling party, the Liberal Democratic Party, lost its parliamentary majority for the first time in 15 years, causing the yen to fall below 153.5 against the dollar on Monday, marking a three-month low.

Liberal Democratic Party

2. WTI and Brent crude oil futures dropped more than 5% on Monday, while U.S. natural gas prices fell over 10%. This followed Israel's weekend retaliation against Iran, which avoided the country's oil facilities and nuclear infrastructure, easing concerns about energy supply disruptions.

Oil

3. The People's Bank of China (PBOC) announced it will conduct direct reverse repos in the open market to "maintain reasonable and sufficient liquidity in the banking system and further enrich the central bank's policy toolbox."

PBOC

4. Apple $Apple(AAPL)$  released the first public version of its artificial intelligence system, Apple Intelligence, along with the iOS 18.1 update for iPhone 15 Pro, iPhone Pro Max, and any iPhone 16 models, as well as software updates for iPad and Mac.

Apple Intelligence

5. Former U.S. President Donald Trump stated, "You know, Taiwan, they stole our chip business... they want to protect it. That chip bill is terrible. We invested billions to get rich companies to come in, borrow money, and build chip companies here. In any case, they won't give us good companies." $Taiwan Semiconductor Manufacturing(TSM)$  $SMIC(00981)$  

✅ Key Takeaways:

With the weekend developments in the Middle East not disrupting energy supplies, market sentiment improved, and investors are turning their attention to corporate earnings, with about 169 S&P 500 companies set to report this week.

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