Hot news

• In pre-market trading on Friday, the futures of the three major US stock indexes rose sharply.

At 20:30 Beijing time, the US non-farm payroll employment in September increased by 0.254 million, expected to increase by 0.14 million, with the previous value increasing by 0.159 million. The US unemployment rate in September was 4.10%, expected to be 4.20%, with the previous value at 4.20%.

• Growth tech stocks rose across the board in pre-market trading, with Amazon and Tesla up over 1%.

• China concept stocks mostly rose in pre-market trading, with Trip.com up over 7%, JD.com up over 4%, Alibaba and Baidu up over 3%

• China concept stocks ETF once again led the rise in US ETFs in pre-market trading, as of the time of publication$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$up 11.51%,$Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$Rose by 7.65%.

• The European Commission's proposal to impose anti-subsidy tariffs on electric vehicles from China has been approved.

According to CCTV, the European Union is voting on whether to impose a five-year anti-subsidy tax on Chinese electric cars. A statement released by the European Commission shows that the proposal to impose tariffs on imported pure electric cars from China has received the necessary support from EU member states. The statement mentions that the EU and China are continuing efforts to explore alternative solutions that must fully comply with WTO regulations, effectively address the subsidies identified in the Commission's investigation, and be monitored and enforceable.

• Apple is expected to launch the iPhone SE 4 with its self-developed 5G Modem in spring 2025.

According to the supply chain, the iPhone SE 4 will be equipped with $Apple (AAPL.US)$self-developed 5G Modem. According to the public information released on October 4th, Apple is expected to launch the fourth generation iPhone SE in spring 2025. This model will feature an OLED screen for the first time and may be priced between $459 and $499, equivalent to 3221 to 3502 yuan (as of October 4th exchange rates).

• Rivian fell more than 7% in pre-market trading, the company updates its 2024 annual production outlook.

"Tesla's rival"$Rivian Automotive (RIVN.US)$Updating its 2024 annual production outlook, it is expected to produce between 0.047 million and 0.049 million vehicles annually, having produced 0.013157 million vehicles in the quarter ending on September 30.

• Spirit Airlines plunged 33% in pre-market trading, the company is discussing potential bankruptcy filing terms.

American low-cost airline$Spirit Airlines (SAVE.US)$U.S. stocks tumbled 33% before market open. Reports suggest that following the failed merger with JetBlue Airways, the company is discussing potential bankruptcy filing terms with bondholders.

Global macro

• "Wall Street's most accurate strategist" speaks out: If the non-farm payroll meets expectations, the market will see a risk appetite rebound.

Bank of America analyst Hartnett, known as the "most accurate strategist on Wall Street," believes that if the latest U.S. non-farm employment situation meets expectations, the market will experience a significant risk appetites rebound. This strategist, leading a team of BofA strategists, stated that if the monthly employment data indicates the U.S. economy added 0.125 million to 0.175 million jobs last month, this will support an economic soft landing, keeping U.S. Treasury yields within a certain range, triggering trades that will revive risk markets.

• Will the surge of China concept stocks continue? Nomura: Recent sharp rise driven by new buying pressure, if short positions cover, the upward trend will be pushed higher.

Since China announced economic stimulus policies, Chinese technology stocks have surged significantly, and all signs indicate that new buying pressure is the main reason. Data from S3 Partners and JPMorgan show that short positions in U.S. depositary receipts (ADRs) of large technology companies such as Alibaba, JD.com, and Baidu have not changed much recently. If short sellers are forced to close positions, the stock market may further rise.

• Bank of America: China fund stocks saw the second-highest historical inflow scale in the past week.

Citing EPFR Global data, Bank of America stated that as of the week of October 3, global emerging market stock funds recorded $15.5 billion inflow, the second highest in history. In the same week, the Chinese stock market saw $13.9 billion inflow, the second highest on record. For the past 18 weeks, emerging market stock funds have continuously received inflows. Funds flowing into the Chinese stock market this year have reached $114 billion, $21.3 billion into India, and $3 billion out of Brazil.

• European Central Bank Committee: Inflation has been brought under control, concerns arise as the labor market cools down.

European Central Bank Executive Board member Schnetno said on Friday that the European labor market is starting to cool, which is worrying as it could lead to investment and growth below average levels. He also stated that inflation in the eurozone is under control. The market bets that the European Central Bank will accelerate its interest rate cuts on October 17th, as last month's inflation rate fell below 2%, while the eurozone is trying to avoid an economic recession. Schnetno said: "The growth problem in Europe is critical... we are now beginning to see the first signs of concern in the labor market."

• Iran's Supreme Leader: Recent military actions against Israel are "the minimum punishment", and they will continue if necessary.

Iran's Supreme Leader Khamenei addressed the Iranian people. Khamenei stated that according to international law, every country has the right to defend its country and people from external aggression. Iran, Palestine, Lebanon, Syria, Egypt, Iraq, and Yemen, these countries all have a common enemy (Israel). There is no international law or standard that does not allow the Palestinian people to defend their rights.

Bilibili rose more than 3% pre-market trading and was upgraded to "buy" by UBS, which raised its EPS estimate per share.

Reminder for US Macro Events

(All in Peking Time)

20:30 US September seasonally adjusted non-farm employment population (10,000 people)

20:30 US September unemployment rate

10:00 USA Global Supply Chain Pressure Index for September.

9:00 PM FOMC Permanent Voters, New York Fed President Williams, gave opening remarks at a meeting held by the New York Fed.

The next morning

1:00 USA Total Oil Rigs Count for the week ending October 4th.

Editor/ping