Outlook for the US market: Chinese-related stocks and ETFs in the US market are moving in reverse, with Direxion's ETF YINN temporarily surging over 9%. The Dow Jones Industrial Average started trading 23 points lower.
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Tonight's reading of the NY stock market.![]()
Market Overview
The USA market started with the Dow Jones Industrial Average, which consists of high-quality stocks, opening at 42,289.75, down 23.25 dollars. The tech-heavy Nasdaq Composite Index started at 18,069.83, down 49.76 points. The S&P 500, composed of 500 large-cap US stocks, opened at 5,726.52, down 11.65 points.
The USA market started with the Dow Jones Industrial Average, which consists of high-quality stocks, opening at 42,289.75, down 23.25 dollars. The tech-heavy Nasdaq Composite Index started at 18,069.83, down 49.76 points. The S&P 500, composed of 500 large-cap US stocks, opened at 5,726.52, down 11.65 points.
Top News
Stock price fell.
Most of the world's stock markets started with a decline, with US futures and European stock indices dropping.
This movement is ahead of an important week for the United States, with discussions by Powell, Chairman of the Federal Reserve System (FRB), on the economic outlook, as well as the release of the latest employment statistics. Both could be key to whether a significant rate cut will be implemented again in November.
According to Goldman Sachs, strong US employment statistics could spur a shift from the most profitable stocks in the market to less profitable ones.
Stock price fell.
Most of the world's stock markets started with a decline, with US futures and European stock indices dropping.
This movement is ahead of an important week for the United States, with discussions by Powell, Chairman of the Federal Reserve System (FRB), on the economic outlook, as well as the release of the latest employment statistics. Both could be key to whether a significant rate cut will be implemented again in November.
According to Goldman Sachs, strong US employment statistics could spur a shift from the most profitable stocks in the market to less profitable ones.
Clear navigation
Investors concerned about the future of the US dollar are increasingly favoring trades that avoid the US dollar, the world's central currency.
From shorting the Swiss franc against the Japanese yen to buying the British pound against the New Zealand dollar, there has been a growing trend in the past few weeks to recommend trades that can generate profits regardless of the Federal Reserve's policies or US elections impacting the US dollar.
Investors concerned about the future of the US dollar are increasingly favoring trades that avoid the US dollar, the world's central currency.
From shorting the Swiss franc against the Japanese yen to buying the British pound against the New Zealand dollar, there has been a growing trend in the past few weeks to recommend trades that can generate profits regardless of the Federal Reserve's policies or US elections impacting the US dollar.
Sharp rise in China
Chinese stocks experienced their most remarkable turnaround on Monday, soaring for the 9th consecutive day. This was due to the government's economic stimulus measures that brought investors back to one of the most battered markets in the world.
In the final trading session before the week-long holiday, traders rushed to buy, causing the CSI 300 Index to surge by 8.5% - the highest since 2008. On the other hand, iron ore benefited from China's stimulus measures, soaring by over 11%.
Chinese-related stocks and ETFs in the US market also thrived, $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ rising over 9% in pre-market trading.
Chinese stocks experienced their most remarkable turnaround on Monday, soaring for the 9th consecutive day. This was due to the government's economic stimulus measures that brought investors back to one of the most battered markets in the world.
In the final trading session before the week-long holiday, traders rushed to buy, causing the CSI 300 Index to surge by 8.5% - the highest since 2008. On the other hand, iron ore benefited from China's stimulus measures, soaring by over 11%.
Chinese-related stocks and ETFs in the US market also thrived, $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ rising over 9% in pre-market trading.
Challenges in the auto industry
In recent days, due to sluggish demand in the Chinese market, the newfound optimism about China may have come too late for many of the world's auto manufacturers who have already issued numerous profit warnings.
On Monday, auto manufacturer Stellantis downwardly revised its profit margin outlook, leading to a 7.4% decline. Additionally, Aston Martin Lagonda Global Holdings dropped by 14%, while Volkswagen issued its second profit warning in three months and fell.
Related articles:Automobile stocks are falling after hours = US individual stocks.
In recent days, due to sluggish demand in the Chinese market, the newfound optimism about China may have come too late for many of the world's auto manufacturers who have already issued numerous profit warnings.
On Monday, auto manufacturer Stellantis downwardly revised its profit margin outlook, leading to a 7.4% decline. Additionally, Aston Martin Lagonda Global Holdings dropped by 14%, while Volkswagen issued its second profit warning in three months and fell.
Related articles:Automobile stocks are falling after hours = US individual stocks.
The price of crude oil does not incorporate geopolitical risks at all = GS.
● In a recent report, Goldman Sachs analyst Lina Thomas analyzed that the oil market is currently being led by four positive factors. Namely, the world's transition to an easing cycle, impending inventory depletion (expected future supply shortage), still low positions and valuations, and the market not yet considering geopolitical risks. In other words, supported by the above factors, there is still room for upward movement in oil prices.
● In the latest report, Goldman Sachs analyst Lindsay Matcham also stated that if conflicts escalate to the point of the closure of the Strait of Hormuz, there is a possibility that oil prices will begin to consider a risk premium. According to Matcham, further escalation of conflicts could have a significant impact on the market, especially if there is a potential closure of the Strait of Hormuz, which could lead to a sharp increase in oil prices.
● In a recent report, Goldman Sachs analyst Lina Thomas analyzed that the oil market is currently being led by four positive factors. Namely, the world's transition to an easing cycle, impending inventory depletion (expected future supply shortage), still low positions and valuations, and the market not yet considering geopolitical risks. In other words, supported by the above factors, there is still room for upward movement in oil prices.
● In the latest report, Goldman Sachs analyst Lindsay Matcham also stated that if conflicts escalate to the point of the closure of the Strait of Hormuz, there is a possibility that oil prices will begin to consider a risk premium. According to Matcham, further escalation of conflicts could have a significant impact on the market, especially if there is a potential closure of the Strait of Hormuz, which could lead to a sharp increase in oil prices.
The Dark Shadow of Germany.
● According to Bloomberg's Michael Nienaber, the German government is reportedly revising downwards the economic outlook of Germany, the largest economy in Europe, stating that there is no prospect of economic expansion this year.
● While the 2-year yield on German government bonds remains at its lowest level since 2022, it is still facing losses.
● Due to the overall gloomy outlook for the European continent, there is increasing speculation in the market about a potential interest rate cut by the European Central Bank (ECB) in October.
● According to Bloomberg's Michael Nienaber, the German government is reportedly revising downwards the economic outlook of Germany, the largest economy in Europe, stating that there is no prospect of economic expansion this year.
● While the 2-year yield on German government bonds remains at its lowest level since 2022, it is still facing losses.
● Due to the overall gloomy outlook for the European continent, there is increasing speculation in the market about a potential interest rate cut by the European Central Bank (ECB) in October.
- moomoo News Zeber
Source: moomoo, Bloomberg
This article uses auto-translation in part.
Source: moomoo, Bloomberg
This article uses auto-translation in part.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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