Chinese stocks saw a significant surge. The Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the U.S., rallied sharply. Leading the charge were stocks like XPeng (XPEV, Financial), Bilibili (BILI), DouYu (DOYU), and Huya (HUYA). JD.com (JD) and Baidu (BIDU) also rose over 3%. Additionally, A50 Index Futures experienced notable gains.
Earlier, the Chinese A-shares market was robust, with the main board showing strength. The Shanghai Composite and Shenzhen Component Indexes posted slight gains, while growth stocks showed minor adjustments. The trading volume expanded to over 1.9 trillion yuan, with nearly 300 stocks hitting limit-up for the day.
Looking ahead, Dongfang Securities highlighted the positive impact of new policies on improving investment expectations in the A-share market, which remains undervalued. The brokerage expects continued rebounds. Focus will be on market capitalization management and third-quarter reports of listed companies. Financial and technology sectors are expected to benefit, with financial policies favoring institutions like securities and insurance firms, and technology stocks poised for growth due to productivity and policy support.
Chinapost Securities forecasted overall volatility with progressive gains. It anticipates the A-share market will exhibit two-way fluctuations, with valuation recovery leading to an elevation in various sectors.
In Europe, major indices in the UK, France, and Germany posted gains. Gold remained volatile. However, Philips experienced a stock price drop of approximately 17%, attributed to a 0.5% decline in comparable third-quarter sales, falling short of analysts’ expectations of a 3% increase. The company cited worsening demand and downgraded its 2024 sales growth guidance from 3%-5% to 0.5%-1.5%.
In the overseas market, a senior global market strategist from JPMorgan discussed a cooling U.S. economy, highlighted by a drop in the manufacturing PMI to 47.2 and slower retail sales growth. Despite a 50-basis point rate cut to kick off a rate-cutting cycle, recent data suggests the pace of cuts will slow, with non-farm employment rebounding and inflation easing.
Global oil prices plummeted following a military operation by Israel in Iran, targeting missile production facilities, but excluding nuclear or oil sites. Citigroup adjusted its Brent crude price forecasts, lowering the three-month outlook to $70 per barrel and the 6-12 month view to $60 per barrel, as geopolitical risk premiums ease.
