Hot news

• Federal Reserve Board Governor Waller calls for 'cautious' rate cuts.

Federal Reserve Board Governor Waller called for 'greater caution' when cutting interest rates in the future, citing rising inflation, a stronger than expected US economy, and job market. Waller stated, 'Regardless of recent events, my basic expectation is still to gradually lower policy rates over the next year.' However, he emphasized that after the Fed's 0.5 percentage point rate cut in September, as long as the job market does not suddenly deteriorate and inflation continues to decline as expected, the Fed should now proceed with rate cuts in a 'cautious manner.' Waller warned that in the short term, the recent hurricanes and Boeing strikes may cause a decrease of 0.1 million in new jobs in October. If inflation unexpectedly rises, the Fed may pause rate cuts; if inflation falls below the Fed's 2% target or if the job market worsens, the Fed may cut rates ahead of schedule.

• Volatility surges ahead of US election as companies increase efforts to hedge forex risks.

With less than a month remaining until the US presidential election day, the tight race has prompted corporate financial executives to strengthen their forex hedging activities. Bloomberg compiled data shows that the 1-month implied volatility of the Euro is currently close to its highest level in about a year, while the same indicator for the Mexican Peso is at its highest level since around 2020. The price of Bloomberg's US Dollar Spot Index 1-month forward options contract is currently roughly at its highest level since early 2023.

• Harris pledges to support the regulatory framework for digital currencies.

USA presidential candidate and current Vice President Harris has promised to support the regulatory framework for digital currency, boosting the trend of digital currency on Monday. In addition, the bankrupt Mt. Gox cryptocurrency exchange postponed the deadline for repaying the remaining assets to creditors for a year last week, alleviating concerns about oversupply from the potential sale of returned bitcoins. Bitcoin and Ether prices have risen by at least 6%.

• After eight weeks of selling off, the hedge fund bought back US stocks, achieving the fastest speed since 2021.

According to Goldman Sachs Prime Brokerage data, hedge funds' net buying volume of individual stocks is the largest since December 2021, with 7 out of 11 sectors being net bought this week. By nominal amount, the medical care, finance, industry, and information technology sectors are leading the way. Fund managers have been net buying American medical care stocks for the third consecutive week, marking the fastest pace in over a year.

• China's financial data for September has been released: factors such as the increase in securities customer margin are driving the M2 growth rate to rebound.

The People's Bank of China released financial data for September. The data shows that as of the end of September 2024, the broad money (M2) balance was 309.48 trillion yuan, a year-on-year increase of 6.8%, up 0.5 percentage points from the end of the previous month. The stable rebound in M2 growth is the result of various factors at work, with the recent introduction and implementation of a package of incremental policies providing significant support to the market's confidence, especially the return of wealth management funds to deposits, supporting the growth of the money supply.

• China stock ETF attracted inflows of over $5 billion in a single week.

Last week, investors injected massive funds into China-related Exchange-Traded Funds (ETFs) on various stock exchanges. Bloomberg's data summary shows that as of the week ending October 11, a total of 5.44 billion US dollars flowed into emerging market ETFs traded in the United States, while bond funds experienced a slight outflow. Chinese stocks attracted 5.15 billion US dollars. The top performer was the iShares Core MSCI China Index ETF, attracting a scale of 2.5 billion US dollars, while the Deutsche Xtrackers Harvest CSI 300 China A Shares ETF recorded a record high weekly inflow of 1.5 billion US dollars.

Gamestop's surge has dramatically narrowed, with the trading platform considering unplugging the internet of US retail investors.

• S&P 500 and Dow Jones hit record highs again, while Chinese concept stock indices fell by over 2%.

The three major US stock indexes collectively closed higher, as investors bought technology stocks ahead of a batch of key corporate earnings releases. At the close, the Dow rose by 0.47%, the Nasdaq rose by 0.87%, and the S&P 500 index rose by 0.77%. Both the S&P 500 and Dow Jones indices hit new all-time highs again, with Nasdaq reaching its highest level in about 3 months.

Most tech stocks in the US stock market rose, with Nvidia up over 2%, hitting a new historical closing high; Apple and Google rose by over 1%, while Microsoft, Tesla, and Meta rose slightly; Netflix fell by over 1%, Amazon fell slightly.

Popular Chinese concept stocks fell across the board, with the Nasdaq Golden Dragon China Index down 2.09%. Xpeng fell over 9%, Nio fell over 7%, Pinduoduo fell over 6%, iQiyi, Weibo, and Baidu fell over 4%, NetEase and Bilibili fell over 3%, Alibaba fell over 2%.

• Nvidia's stock price is approaching a historical high, with a total market value of 3.39 trillion US dollars.

$NVIDIA (NVDA.US)$ Up 2.43%, closing at $138.07, breaking the previous all-time closing high of $135.58 on June 18, with a total market value of 3.39 trillion US dollars. Nvidia's recent growth is mainly due to the company's successful allaying of investors' concerns about product delays and long-term growth prospects. CEO Jensen Huang announced that the Blackwell chip has been fully produced, with strong market demand, supported by Morgan Stanley's report indicating orders are booked 12 months ahead, and the business and outlook remain robust.

• Tesla's Optimus was remotely controlled at the conference.

Rumors surrounding the highly anticipated event last week $Tesla (TSLA.US)$ At the "Robotaxi Day" event, the company remotely controlled some functions of the Optimus humanoid robot in hopes of better showcasing its product. Additionally, some attendees also posted on social media that Optimus received some external assistance, and even an Optimus bartender admitted that it received "human help." However, Tesla CEO Musk did not mention this during the live broadcast, and the claim of remote control has raised doubts about the robot's capabilities and readiness to enter the market.

• TSMC continues to achieve record highs, with a total market value once again reaching 1 trillion US dollars.

$Taiwan Semiconductor (TSM.US)$ Hit a historical high of $194.25 during the session and closed up 0.73% at $192.21, with earnings report scheduled for October 17. Due to surging demand, the market expects TSMC's profit to increase by 40% in the third quarter. According to LSEG SmartEstimate's forecast, TSMC is expected to achieve a net income of 298.2 billion new Taiwan dollars ($9.27 billion) for the quarter ending September 30. In comparison, the net income for the third quarter of 2023 was 211 billion new Taiwan dollars. TSMC will hold a quarterly earnings conference call on Thursday to update this quarter and full-year performance outlook, including its capital expenditures for production expansion.

• Cryptocurrency concept stocks collectively rose, with Bitcoin surging by 6%.

$Coinbase (COIN.US)$Please use your Futubull account to access the feature.$CleanSpark (CLSK.US)$ $MARA Holdings (MARA.US)$ Increasing by over 5%, $Hut 8 (HUT.US)$Please use your Futubull account to access the feature.$Canaan (CAN.US)$ Both increased. Former US President and Republican presidential candidate, Trump, recently announced on his official X account that the cryptocurrency token of World Liberty Financial (WLFI) project related to his family will be officially launched for public sale this Tuesday. Trump emphasized this as an opportunity to participate in financial innovation, with the project open to non-US citizens and whitelist-eligible individuals. Yesterday, the optimistic sentiment spread in the cryptocurrency market, with Bitcoin surging by 6% and Ethereum breaking back above the $2500 level.

• Adobe launches AI video generator, closing up 2.87%

On Monday local time, at the MAX annual conference, $Adobe (ADBE.US)$ this American computer software company announced that it has started public testing of a text-living video artificial intelligence (AI) model. The Firefly video model extends Adobe's existing generative AI model family, and Adobe's video tools are designed to allow video creators and editors to use them in daily life. Adobe described its technology as making new breakthroughs, and it will compete with the text-living video model Sora launched earlier this year by OpenAI.

• Buffett kept making moves, continuously buying a broadcasting company.

$Sirius XM (SIRI.US)$ Recently submitted documents to regulatory agencies show that Buffett's investment company Berkshire Hathaway has continuously purchased shares of the company, totaling $86.73 million. Rough calculations show that Berkshire Hathaway bought approximately $86.73 million worth of Sirius XM stock in three days, increasing its total stake in the company to 0.10872 billion shares. As early as November 2023, Berkshire Hathaway had disclosed its stake in Sirius XM.

BeiShui crazily bought China Mobile for nearly HKD 1.8 billion and sold Tencent for about HKD 200 million. On Monday (June 3rd), Southbound funds net purchased HKD 3.4 billion of Hong Kong stocks.

• Beishui had a net inflow of HK$12.17 billion in Hong Kong stocks, purchasing over HK$1.5 billion of Alibaba, and nearly HK$0.7 billion of China Construction Bank.

On October 14 (Monday), southbound funds net bought Hong Kong stocks worth 12.17 billion Hong Kong dollars.

$BABA-W (09988.HK)$and$CCB (00939.HK)$N/A.$ANTA SPORTS (02020.HK)$Received net purchases of 1.546 billion Hong Kong dollars, 0.693 billion Hong Kong dollars, 0.477 billion Hong Kong dollars respectively;

$TENCENT (00700.HK)$,$KUAISHOU-W (01024.HK)$,$CNOOC (00883.HK)$They experienced net outflows of 775 million Hong Kong dollars, 615 million Hong Kong dollars, and 445 million Hong Kong dollars respectively.

• Alibaba will be included in the Hang Seng Stock Connect Hong Kong Index starting on October 28th.

Hang Seng Index Company announced that due to $BABA-W (09988.HK)$ Group Holding Limited - W has been included in the Hong Kong Stock Connect and meets the fast inclusion requirements of the relevant indices. Alibaba - W will be included in the following indices after the close on October 25, 2024 (Friday), and will take effect on October 28, 2024 (Monday).

• Ping An Insurance's total premium income in the first 9 months of the year was approximately 689.1754 billion yuan, an increase of 8.42% year-on-year.

$PING AN (02318.HK)$ Announcement: In the first 9 months, Ping An Property & Casualty Insurance, Ping An Life Insurance, Ping An Pension Insurance, and Ping An Health Insurance respectively received original insurance contract premium income of about 239.371 billion yuan, 421.716 billion yuan, 14.197 billion yuan, and 13.891 billion yuan, with year-on-year growth rates of 5.9%, 10.2%, -4.9%, and 14.6%, respectively; the total premium income is approximately 689.1754 billion yuan, up 8.42% year-on-year.

• China Resources Beverage applies to issue 0.3478 billion shares of stock through a Hong Kong IPO (global).

$China Resources Beer (Holdings) Company Limited (810588.HK)$ Hong Kong Exchange announcement: Application to issue 0.3478 billion shares of stock through a Hong Kong IPO (global), with an indicative price range of HK$13.50-14.50 per share.

The company's overall sales volume in 2023 was 18,000 kiloliters, with a year-on-year increase of 28.10%, indicating significant growth. In terms of product structure, the operating income of products worth 10-30 billion yuan were 401/1288/60 million yuan respectively.

Keywords: China's MLF bid rate and operation scale, Goldman Sachs / Citigroup / Bank of America / Johnson & Johnson performance, Lenovo's "Tech World 2024" event

On Tuesday, in terms of economic data, China will announce the bid rate and operation scale of MLF.

In terms of financial events, $LENOVO GROUP (00992.HK)$ Will hold the "Technology World 2024" event.

In terms of performance, $Goldman Sachs (GS.US)$Please use your Futubull account to access the feature.$Citigroup (C.US)$Please use your Futubull account to access the feature.$Bank of America (BAC.US)$Please use your Futubull account to access the feature.$Johnson & Johnson (JNJ.US)$ Both will announce their earnings before the US stock market opens.

Futubull Morning News:

Stand by and wait quietly for the natural development of the situation.
- Jim Rogers

Editor/Rocky