Oct 28, 2024: Global Market Recap
Last Friday, the two major US stock indices, the Dow Jones Industrial Average and the S&P 500, opened high and closed low, with the S&P 500 once rising by 1% in the early morning. Both the S&P 500 and the Dow Jones ended their six-week winning streak, while the Nasdaq Composite hit a new high during the session, rebounded for two days, and continued to rise for seven weeks. The Dow Jones and the Russell Small Cap Index fell by about 3% for the week. Nvidia's market value once surpassed Apple's to become the largest, Tesla rose by more than 3%, and its weekly earnings increased by 22%. Capri fell by nearly 49%, setting a historical record for the largest drop.
On Friday, the China concept index was eye-catching, once rising by more than 2%. WeRide's US IPO rose by nearly 7% on its first day. Zeekr rose by nearly 25%, and NIO, XPeng, and Li Auto all rose by more than 5%. Photovoltaic stocks soared across the board, with Daqo New Energy rising by more than 16%. The offshore renminbi broke through 7.13 yuan at the beginning of the US stock market, then fell by hundreds of points, and fell by nearly 160 points for the week.
The 10-year US Treasury yield and the US dollar approached a three-month high. The US Treasury yield rose by nearly 16 basis points in a week. The US dollar has risen for four consecutive weeks, the longest consecutive weekly increase in eight months.
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The Japanese yen fell through 152. Reports said that the US government is investigating the cryptocurrency company Tether, and Bitcoin fell.
Commodities rose again. Several US Air Force F-16 fighter jets have arrived in the Middle East, and oil prices rose by more than 2%, with a weekly increase of more than 4%. Gold rose by nearly 1% for the week. European natural gas and palladium hit a new high for the year.
In the Asian session, the three major A-share indices all closed higher, with photovoltaic stocks leading the surge in daily limits, the Beijing Stock Exchange 50 rose and fell back to close up by 0.1%, and the Hang Seng Technology Index closed up by 1.2%.
Chinese market: The A50 index closed lower for the third consecutive week. Although the decline has narrowed, the cumulative decline over the three weeks has lost all the market gains since September 30. Geopolitical events in the international market over the weekend, and domestic macroeconomic data that did not meet expectations, this week is the last trading week of October, whether the A50 trend can stabilize is very critical, and it also has a certain guiding role for the fourth quarter and the end of the year.
Last Friday, the three major A-share indices opened slightly higher and continued to strengthen, with the ChiNext Index once rising by more than 4%, then the index rose and fell back, and the increase narrowed. As of the close, the Shanghai Composite Index rose by 0.59%, the Shenzhen Component Index rose by 1.71%, and the ChiNext Index rose by 2.93%. On the market, the photovoltaic concept continued to strengthen, with Longi Green Energy, Tongwei Shares, TCL Zhonghuan, Jinko Technology, and more than 30 other stocks hitting the daily limit. Solid-state batteries and sodium battery concepts soared, with Huasheng Lithium Battery, Fengyuan Shares, Chuanyi Technology, Tianci Materials, and many other stocks hitting the daily limit. Shenzhen local stocks were active, with Shenzhen Kangjia A, Huakontongwei, Shenzhen Saige, China Baoan, and many other stocks hitting the daily limit. Electrical equipment, home furnishings, chemical industry, internet, building materials, and other sectors led the gains; insurance, banking, and telecommunications operations were among the leading declines.
US market: The three major US stock indices rose and fell differently, with the Dow Jones closing down by 0.61%, the S&P 500 Index down by 0.03%, and the Nasdaq Composite up by 0.56%. The NASDAQ Golden Dragon China Index closed up by 1.38%. Western Digital (WDC.O) rose by 4.72%, and its first fiscal quarter turned from loss to profit. Tesla (TSLA.O) closed up by 3.34% after a 22% surge yesterday. Cryptocurrency concept stocks generally fell, Riot Blockchain (RIOT.O) fell by 5.40%, Marathon Digital (MARA.O) fell by 6.37%, Coinbase (COIN.O) fell by 1.97%, following reports that the US federal government is investigating whether the cryptocurrency company Tether may have violated sanctions and anti-money laundering regulations.European Market: European stock indices showed mixed performances, with the German DAX 30 index closing up by 0.11%; the UK's FTSE 100 index closed down by 0.25%; the Euro Stoxx 50 index closed up by 0.15%.
Commodity Market: Spot gold once fell below the 2720 threshold during the trading session, but it rebounded significantly before the US market session and once reached an intraday high of $2747.69, surging over $30 from the daily low, and ultimately closed up by 0.41% at $2746.92 per ounce. Spot silver rose before the US market session, but then gave up all of its daily gains, ultimately closing down by 0.01% at $33.66 per ounce. On Monday, spot gold opened with a gap down of $15.
Investors assessed the ongoing conflicts in the Middle East, and crude oil closed higher last Friday, with WTI crude oil returning above the $70 threshold, ultimately closing up by 1.88% at $71.54 per barrel; Brent crude closed up by 1.76% at $75.53 per barrel. On Monday, crude oil opened with a significant drop, with WTI crude falling by more than 4%, once dropping below $68; Brent crude also fell by more than 4%, to around $72.
Foreign Exchange Market: Last Friday, the US Dollar Index first fell and then rose, once losing the 104 threshold during the session, but it strongly rebounded during the US market session, recovering all of its daily losses, and ultimately closed up by 0.35%, marking a fourth consecutive week of gains, at 104.38. US Treasury yields rebounded, with the benchmark 10-year US Treasury yield closing at 4.2460%; the two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.1220%.