Financial Daily: The Fed stays put! Tesla's earnings exceed expectations, Chinese stocks make a comeback, and gold prices break through $5,400 again!

- Focus

– US Treasury Secretary Besant stated that the US has consistently pursued a strong dollar policy and 'absolutely will not' intervene in the foreign exchange market to support the yen.

– US Secretary of State Rubio stated that the US will soon establish a diplomatic institution in Venezuela.

– IBM’s fourth-quarter revenue increased by 12% year-over-year, with after-hours stock price rising more than 7%.

– Tesla's fourth-quarter earnings per share exceeded expectations, with after-hours stock price rising nearly 4%.

– META's fourth-quarter revenue increased by 24% year-over-year, with after-hours stock price rising more than 10%.

– Microsoft's after-hours stock price fell more than 7%.

Content compiled by the 'Harbor Family Office' under Henry Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] Mixed performance for the three major US stock indexes, Nasdaq achieved six consecutive gains.

The Federal Reserve concluded its interest rate decision meeting on Wednesday, making no adjustments to rates and providing no indication of an imminent restart of rate cuts. In early trading, the release of several semiconductor companies’ earnings reports briefly helped push the S&P 500 Index above the 7,000-point threshold. However, sentiment cooled later, and gains were erased. The Nasdaq Index climbed higher towards the end of the session as many large US tech firms were about to release their earnings reports. The three major US stock indexes ended mixed.

At the close, the S&P 500 Index fell 0.01% to 5,978.03 points; the Nasdaq Index rose 0.17% to 23,857.447 points; and the Dow Jones Industrial Average rose 0.02% to 49,015.60 points. The VIX volatility index rose 1.24% to 16.35 points.

The index of the seven major U.S. tech stocks closed up 0.19%, with NVIDIA rising nearly 1.6%, Microsoft up 0.22%, Tesla down 0.10%, and Apple falling 0.71%. The Nasdaq China Golden Dragon Index rose 0.32% to 7,892.01 points. Among popular Chinese stocks, New Oriental Education rose nearly 5%, BYD and Li Auto both gained over 2%, while PDD Holdings fell 3.8%.

[European Markets] Major European indices closed mostly lower on Wednesday.

European stock markets closed generally lower on Wednesday, with the pan-European STOXX 600 Index falling 0.66% to 609.08 points and the pan-European STOXX 50 Index dropping 1.02% to 5,933.20 points. Luxury stocks performed poorly, with LVMH Group falling nearly 7.9%, Hermès declining 3.76%, and Christian Dior dropping 7.35%.

Germany's DAX 30 Index fell 0.29% to 24,822.79 points; France's CAC 40 Index dropped 1.06% to 8,066.68 points; and the UK FTSE 100 Index declined 0.52% to 10,154.43 points.

[Asian Markets] South Korean indices continued their upward trend, while Japanese indices were mixed.

South Korean indices continued to rise on Wednesday, while Japanese indices were mixed. At the close, Japan’s Nikkei 225 Index rose 0.05% to 53,358.71 points, while the TOPIX Index fell 0.8% to 3,535.49 points. South Korea’s KOSPI Index climbed 1.69% to 5,170.81 points.

[Hong Kong Market] Hong Kong stocks surged, with all three major indices rising over 2.5%.

Hong Kong stocks surged on Wednesday, with gains of more than 2.5% across all three major indices. At the close, the Hang Seng Index rose 2.58% to 27,826.91 points, hitting a new five-year closing high; the Hang Seng Tech Index increased by 2.53% to 5,900.16 points; and the Hang Seng China Enterprises Index climbed 2.89% to 9,512.24 points. Gold stocks continued their rally as spot gold broke through the $5,300 mark, with Zijin Gold International and Chifeng Gold both closing at record highs. State-owned enterprise stocks advanced, with China National Offshore Oil Corporation surging over 6% intraday, while China Aluminum Corporation, China Railway Group, and China Telecom also saw gains. Technology, financials, coal, and semiconductor stocks strengthened across the board. In individual stocks, Pop Mart’s gain once reached 9%, later moderating to 7.03%; newly listed Mingming Holdings surged nearly 70%, the parent company of snack brand Zhao Yimai.

[A-Share Market] A-shares showed volatile trading, with divergent performances among the three major indices.

Chinese A-shares fluctuated on Wednesday, with the three major indices showing divergent performances. The ChiNext index fell by more than 1% at one point during trading, while non-ferrous metals and energy stocks performed strongly. At the close, the Shanghai Composite Index rose by 0.27%.%The index closed at 4,151.24 points; the Shenzhen Component Index gained 0.09%, closing at 14,342.89 points; and the ChiNext Index fell by 0.57%, closing at 3,323.56 points. In terms of sectors, gold and silver stocks continued their strong performance, with several stocks hitting their price limit and creating a wave of surges. Energy sector stocks such as oil, gas, coal, and rare earths also showed strength, while pharmaceuticals, medical devices, photovoltaics, and AI robotics sectors saw notable declines.

– Bonds

[US Bonds] US Treasury yields fluctuated, with the yield on the 10-year Treasury note rising by approximately 0.6 basis points.

US bond prices experienced significant volatility on Wednesday. Before Powell began his press conference, the 10-year Treasury yield hit an intraday high but quickly reversed its gains to return to the previous day's level. By late trading in New York, the yield on the 10-year US Treasury note had risen about 0.6 basis points to 4.25%, while the two-year Treasury yield increased by 1.24 basis points to 3.5854%.

[Non-US Bond Markets] European government bond yields were mixed, with the yield on the 10-year German Bund falling by 1.7 basis points.

European government bond yields were mixed on Wednesday. By the end of the European session, the yield on the 10-year German Bund had fallen by 1.7 basis points to 2.857%, while the yield on the 10-year UK gilt rose by 2.1 basis points to 4.546%. The yield on the 10-year French government bond fell by 1.4 basis points to 3.423%.

[China Bond Market] China’s treasury futures closed higher across the board on Wednesday.

Treasury futures started to rise across the board in the afternoon on Wednesday. By the close, the 30-year main contract was up 0.07%, the 10-year main contract rose by 0.05%, the five-year main contract gained 0.06%, and the two-year main contract climbed by 0.01%.

– Foreign Exchange

[Dollar] The US dollar index rebounded upwards.

The US dollar index strengthened, showing an inverted V-shaped trend throughout the day. After US President Trump spoke, the dollar index quickly declined but steadily rebounded following remarks from Besant. By late trading in New York, the ICE US Dollar Index was up about 0.8%, closing at 96.667 points.

Non-US Dollar Currencies: The US dollar performed strongly against most major currencies, with the yen falling about 1.1%.

The US dollar rebounded strongly on Wednesday. By the New York close, the dollar rose about 1.1% against the yen to 153.90 yen. The euro fell about 1% against the dollar to 1.1916 dollars.

Offshore Renminbi: The US dollar was at 6.9437 yuan against the offshore renminbi.

By the New York close, the offshore renminbi rose 100 points against the dollar compared to the previous trading day's close, reaching 6.9437 yuan. The onshore renminbi rose 123 points against the dollar from the previous trading day's closing price to 6.9453 yuan.

Cryptocurrency: Volatile movements in the cryptocurrency market as Bitcoin failed multiple attempts to break higher.

The cryptocurrency market saw volatile trading on Wednesday. Bitcoin failed multiple times to break higher during the session and faced resistance near $90,000 in the final hours, briefly turning negative.

- Commodities

Energy: Crude oil futures prices continued their upward trend.

Oil prices continued to rise amid concerns over escalating tensions in Iran. By the US stock market close, Brent crude futures were up about 1.23%, settling at $68.40 per barrel, while US crude futures rose about 1.31%, settling at $63.21 per barrel.

Precious Metals: Gold prices hit new highs, with spot gold surging above $5,400.

Precious Metals:Gold prices closed at record highs for the seventh consecutive trading day, driven by sustained high risk-aversion sentiment. Spot gold surged above $5,400 for the first time. By the New York close, spot gold was up 4.53% at $5,415 per ounce, while US gold futures rose about 5.83% to $5,378.80 per ounce.

Metals Futures Market:In late New York trading, spot silver rose 3.91% to $116.4285 per ounce; US silver futures surged 9.81% to $116.355 per ounce. US copper futures climbed 2.24% to $5.9930 per pound.

[Disclaimer]

The above content is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office") and is compiled from market information sourced from various channels. Neither Harbor Family Office nor its group members participated in the preparation of the content, nor have they expressly or implicitly endorsed or approved the content. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently evaluate and judge this material and are advised to consult professionals before making any investment or trading decisions. Without authorization, no one may reproduce, copy, or publish the content in whole or in part to the public by any means. Copyright belongs to Harbor Family Office and related providers.

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