Oct 24 Global Market Recap

On Wednesday, some officials from central banks in Europe and the United States called for caution in lowering interest rates this week. Long-term U.S. Treasury yields continued to rise, with the 10-year U.S. Treasury yield once breaking through 4.26%, reaching a three-month high along with the U.S. dollar. The rise in U.S. Treasury yields continued to suppress risky assets. The Dow Jones Industrial Average and the S&P 500 fell by about 1%, and they have been falling for three consecutive days. The Dow Jones Industrial Average fell by 400 points, the largest drop since early September. The Nasdaq Composite fell by more than 2% during the trading day. Nvidia once fell by more than 4%. Due to unfavorable news about Vision Pro and iPhone 16, Apple once fell by 3.4%, but later narrowed its losses driven by news of AI products. Tesla's strong financial report led to a more than 10% increase after the market closed.

Chinese concept stocks turned downward, with Pinduoduo falling by nearly 5%, and Li Auto rising by nearly 4%. The offshore renminbi once again fell below 7.14 yuan and then recovered its losses.

The Japanese yen fell through 153. Bitcoin fell by more than 1%, losing its position at $67,000.

Last week, the U.S. Energy Information Administration's (EIA) crude oil inventory increased more than expected, and oil prices fell by more than 1%. Spot gold approached $2,760 to a new high and then fell by more than 1%, while silver fell by 4%, detaching from its highest level in nearly twelve years.

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In the Asian trading session, the Shanghai Composite Index returned to 3,300 points, the Beijing Stock Exchange 50 Index closed up by more than 4%, and the Hong Kong stock market opened high and went higher, with Pop Mart surging by 18%.

Chinese Market: On Wednesday, the A50 Index continued the narrow fluctuation trend of the previous few days, falling slightly by 76 points, closing at 13,539, with a daily decline of -0.55%.

Yesterday, the three major A-share indices opened slightly lower and then fluctuated higher, with all of them once rising by more than 1% during the trading day, then retreated, and the ChiNext Index turned green. By the close, the Shanghai Composite Index rose by 0.52%, the Shenzhen Component Index rose by 0.16%, and the ChiNext Index fell by 0.53%. On the trading board, the defense and military industry concept soared, with Hangxin Technology, Tianhai Defense, and China Sea Defense, among others, hitting the daily limit. The wind power concept was active, with Hailifeng Electric Power and Tianshun Wind Energy, among others, hitting the daily limit. The automotive sector strengthened, with Seres, Zhongtai Automobile, and Lifan Technology, among others, hitting the daily limit. The salt lake lithium extraction concept moved, and Walton Technology hit the daily limit. The photovoltaic concept moved up, with Daqo Energy, Tongwei Shares, and Fuling, among others, hitting the daily limit. The BC battery concept fluctuated and strengthened, with Haiyou New Materials and Junda Shares, among others, hitting the daily limit. The electrical equipment, insurance, brewing, and chemical sectors were among the leading gainers; the media and entertainment, internet, and semiconductor sectors were among the leading losers.US Market: The Dow Jones Industrial Average closed down by 0.96%, the S&P 500 Index fell by 0.92%, and the Nasdaq Composite dropped by 1.6%. Nvidia (NVDA.O) and Apple (AAPL.O) both declined by more than 2%. Due to its Q3 net profit and gross margin exceeding expectations, Tesla (TSLA.O) rose by over 10% in after-hours trading in the US, while Pinduoduo (PDD.O) fell by nearly 5%. The NASDAQ Golden Dragon China Index closed down by 1.2%, Alibaba (BABA.N) fell by 2.4%, Li Auto (LI.O) increased by 3.7%, and New Oriental (EDU.N) fell by more than 8%.

European Market: European stock indices closed lower across the board, with the German DAX 30 Index closing down by 0.23%; the UK's FTSE 100 Index closed down by 0.58%; and the EURO STOXX 50 Index closed down by 0.34%.

Commodity Market: After reaching a new historical high above $2,750, spot gold began to correct during the European trading session and accelerated its decline during the US trading session, briefly breaking below the $2,710 threshold, and ultimately closed down by 1.21% at $2,715.43 per ounce. Spot silver closed down by 3.31%, at $33.69 per ounce.

Despite a rebound in refining activity, crude oil fell as the increase in US crude oil inventories still exceeded expectations. West Texas Intermediate (WTI) crude oil briefly fell near the $70 mark before the US trading session, then recovered some ground, and ultimately closed down by 0.52% at $70.89 per barrel; Brent crude closed down by 0.41%, at $74.90 per barrel.

Foreign Exchange Market: On Wednesday, due to a series of positive economic data prompting the market to adjust expectations for the magnitude and speed of the Federal Reserve's rate cuts, the US Dollar Index continued its upward trend, rising for the 16th time in 18 trading days, and ultimately closed up by 0.33%, at 104.41. US Treasury yields also soared, with the benchmark 10-year US Treasury yield closing at 4.2430%; the two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.0950%.