Market analysis on October 10

In the minutes of the September meeting of the Federal Reserve, policymakers were significantly divided over sharp interest rate cuts. Although the market is closely watching the upcoming US CPI inflation data, the Dow Jones Industrial Average and the S&P 500 Index still reached new highs, achieving two consecutive gains. Among them, the Dow and Chip Index both rose 1%. However, not all stocks showed strong performance. Nvidia turned down, Google and Tesla fell more than 1.4%, and Boeing hit the lowest price in two years. Tesla will soon be showcasing its robot taxi at Robotaxi Day to be held on October 10. The model has a two-seater design with a butterfly design that opens upward.

Morgan Stanley predicts that Tesla's L4 autonomous driving products may cost 41% less than competing products. Meanwhile, Geoffrey Hinton, a new Nobel laureate and known as the “Godfather of AI,” revealed that one of his students had fired OpenAI's Sam Altman, and he is proud of this. On the antitrust side, the US Department of Justice is considering whether Google needs to be split off.

In the tech industry, demand for AI chips continues to be strong. TSMC's sales in September reached NT$251.87 billion, up 39.6% year over year. Third-quarter revenue was NT$759.69 billion (approximately US$23.62 billion), exceeding analysts' expectations of NT$750.36 billion (approximately US$23.33 billion). TSMC is expected to announce full financial results next Thursday.

On the bond market side, the results of the 10-year US bond auction were mixed. After the auction, the US bond yield rose to a ten-week high, reaching 4.08%. Furthermore, the US dollar has strengthened for eight consecutive days, hitting an eight-week high. The minutes of the Federal Reserve meeting showed that although most participants supported cutting interest rates by 50 basis points in September, there are still some policymakers who prefer to cut interest rates by only 25 basis points, reflecting a cautious attitude towards the pace of monetary policy.

In the international market, the decline of China Securities has narrowed significantly. The China General Index closed down 1.3% after falling 3.7%, and NIO and Xiaopeng Motors turned up. FTSE A50 futures rose as much as 3.7% in trading. Meanwhile, the offshore RMB exchange rate fell below 7.09 yuan against the US dollar, and the yen fell to a ten-week low of 149 against the US dollar.

In the commodity market, the price of gold fell for six consecutive days. After experiencing an initial 3% drop in oil prices, the decline narrowed sharply.

In the Asian market, the three major A-share indices all closed down. Among them, the Shanghai Index fell more than 6%, GEM fell more than 10%, and brokerage stocks generally declined. The Hong Kong stock market's Hang Seng Index closed down 1.38%. In the Chinese financial market, Cathay Pacific Junan and Haitong Securities resumed trading eight days earlier than planned and are expected to see a valuation repair. The first formal meeting of a joint working group between the Central Bank of China and the Ministry of Finance aims to provide a suitable market environment for the central bank's treasury bond trading operations.

Risk warning and disclaimer: The market is risky, so you need to be careful when investing. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial circumstances or needs of individual users. Users should consider whether any opinions, opinions, or conclusions in this article are appropriate to their particular circumstances.

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