Financial Daily: The Fed kept interest rates unchanged; Kevin Warsh’s nomination advanced in a key step just before Powell's “curtain call,” with the market sentiment cautious.

- Key Focus

– The Fed maintained the interest rate at the 3.50%-3.75% range.

– Trump's nominee for Fed Chair, Warsh, passes key Senate confirmation process

– According to Reuters, OPEC+ may agree to a slight increase in oil production quotas following the UAE's exit from the group

Content compiled by 'Harbor Family Office,' a subsidiary of Henry Jia Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] Major US stock indexes remained largely unchanged

On Wednesday, the Federal Reserve announced it would keep interest rates unchanged in its latest rate decision. Several tech giants released earnings on the same day. Alphabet’s shares surged after-hours due to better-than-expected revenue, while Meta’s after-hours shares fell significantly due to increased capital expenditures. Crude oil prices continued to rise amid ongoing blockades by Iran and the US, with Brent crude rising for eight consecutive trading sessions. A variety of news and information led to cautious sentiment in the US stock market, with major indexes remaining largely flat compared to the previous trading day, and market panic sentiment rising.

At the close, the S&P 500 Index fell 0.04% to 7,135.95 points; the Nasdaq Index rose 0.04% to 24,673.241 points; the Dow Jones Industrial Average fell 0.57% to 48,861.81 points. The VIX panic index rose 5.33% to 18.78 points. The Philadelphia Semiconductor Index rose 2.35% to 10,271.298 points.

The index of the seven major US tech stocks fell 0.55%, with NVIDIA down 1.84%, Microsoft down 1.12%, Meta down 0.33%, and Amazon up 1.29%. The Nasdaq Golden Dragon China Index fell 0.64% to 6,791.66 points. Among popular Chinese stocks, Daqo New Energy fell 12.7%, Baidu fell 3.8%, Xiaomi fell 0.6%, and Alibaba fell 0.32%. In individual stocks, Starbucks rose 9.7%, Visa rose 8.9%, and Taiwan Semiconductor rose about 0.4%.

[European Market] Major European stock indexes generally declined

On Wednesday, major European stock indexes generally declined, with the pan-European index falling for three consecutive days. At the close, the pan-European STOXX 600 Index fell 0.65% to 602.64 points. The pan-European STOXX 50 Index fell 0.34% to 5,816.48 points.

Germany's DAX 30 Index fell 0.27% to 23,954.56 points; France's CAC 40 Index fell 0.39% to 8,072.13 points; the UK's FTSE 100 Index fell 1.16% to 10,213.11 points; Italy's FTSE MIB Index fell 0.51% to 47,796.03 points.

[Asian Market] Asian stock markets were mixed on Wednesday, Japanese stock market closed for holiday

Asian markets were mixed on Wednesday, with the Japanese stock market closed for Showa Day. By the close, the South Korean KOSPI index rose 0.75% to 6,690.90 points, while the FTSE Straits Times Singapore Index fell 0.42% to 4,867.29 points.

[Hong Kong Market] Hong Kong stocks continued to rise throughout the day, with all three major indexes closing higher.

Hong Kong stocks continued to rise throughout the day on Wednesday, with all three major indexes gaining more than 1.5%. By the close, the Hang Seng Index was up 1.68% at 26,111.84 points; the Hang Seng Tech Index rose 1.72% to 4,910.02 points; and the Hang Seng China Enterprises Index gained 1.86% to 8,805.60 points. In terms of sectors, tech stocks generally strengthened, recovering from the previous session’s slump, with Meituan, Bilibili, and Alibaba all rising more than 3%. Lithium battery stocks advanced, with Longpan Technology surging over 19%, Chaowei Power closing up 16.06%, and Zhengli New Energy and Zhongchuang New Port both rising more than 12%. Real estate stocks rose due to recent market trading data improvements, with China Jinmao climbing 11.33%, and China Overseas Grand Ocean Group and China Overseas Land & Investment both closing nearly 9% higher. Pharmaceutical and semiconductor stocks weakened.

[A-share Market] All three major A-share indexes closed higher, with the ChiNext Index rising more than 2.5%.

A-shares maintained an upward trend throughout the day. The Shanghai Composite Index and Shenzhen Component Index opened lower but continued to rise, with all three major indexes closing higher, and the ChiNext Index rising more than 2.5%. By the close, the Shanghai Composite Index was up 0.71% at 4,107.51 points, the Shenzhen Component Index gained 1.96% to 15,120.92 points, and the ChiNext Index climbed 2.51% to 3,687.17 points. In terms of sectors, the minor metals concept sector moved higher across the board, with Jinnuo Mining, Zhongtung High-Tech, and China Rareearth among eight stocks hitting their daily limit. Several lithium mining stocks surged significantly, with Tianhua New Energy closing up 18.83%, and Rongjie Shares and Yongxing Materials also hitting their daily limits. The lithium battery industry chain showed strong performance, with Defang Nanomaterials closing up 20%, and Hunan Yoneng and Wanrun New Energy both rising more than 10%, mainly driven by strong demand and rising material prices. A few sectors including industrial gases, banking, and GPU declined.

– Bonds

[US Bonds] US Treasury yields continued to rise.

US Treasury yields continued to rise, with a significant increase during Federal Reserve Chair Jerome Powell's final press conference in his term. In late New York trading, the yield on the 10-year US Treasury note rose 8.62 basis points to 4.4318%, and the yield on the two-year US Treasury note increased 11.08 basis points to 3.9468%.

[Non-US Bond Markets] European government bond yields continued their upward trend.

European government bond yields continued to rise on Wednesday. In late European trading, the yield on Germany's 10-year government bond rose 4.3 basis points to 3.110%, while the yield on Germany’s two-year government bond increased 9.3 basis points. The yield on the UK's 10-year government bond rose 4.7 basis points to 5.053%. The yield on France's 10-year government bond climbed 4.5 basis points to 3.769%, and the yield on France’s two-year government bond increased 8 basis points. Italy's 10-year government bond yield rose 7 basis points, and Spain's 10-year government bond yield increased 5.4 basis points.

[China Bond Market] Government bond futures opened lower but closed higher on Wednesday.

On Wednesday, government bond futures opened lower but closed higher across the board. By the close, the 30-year main contract rose by 0.20%, the 10-year main contract increased by 0.06%, the 5-year main contract gained 0.05%, and the 2-year main contract climbed 0.02%.

– Foreign exchange

[US Dollar] The US dollar index rose, with the ICE US dollar index increasing by 0.33%.

The US dollar index continued to rise throughout the day. In New York trading late hours, the ICE US dollar index rose by 0.33% to 98.968 points; the Bloomberg US dollar index climbed 0.40% to 1,202.65 points.

[Non-US currencies] The US dollar rose against most major global currencies, while the Japanese yen fell approximately 0.5%.

The US dollar rose against most major global currencies, while the Japanese yen fell approximately 0.5%. In late New York trading, the US dollar rose 0.49% against the yen to 160.39 yen; the euro fell 0.29% against the US dollar, closing at 1.1677 dollars; the pound fell 0.32% against the US dollar to 1.3473 dollars; and the US dollar climbed 0.24% against the Swiss franc.

[Renminbi] The offshore renminbi exchange rate was quoted at 6.8474 yuan per US dollar.

In late New York trading, the offshore renminbi exchange rate rose 72 points from the previous trading day's close, settling at 6.8474 yuan. The onshore renminbi exchange rate against the US dollar increased 31 points from the previous trading day’s close, reaching 6.8329 yuan.

[Cryptocurrency] The cryptocurrency market surged before retreating, with Bitcoin dropping near the $75,000 level.

On Wednesday, the cryptocurrency market surged before retreating. Bitcoin briefly hit $78,000 before falling near the $75,000 mark, a decline of nearly 3% from its daily high. Ethereum fell approximately 2.5%.

– Product

[Energy] US crude oil futures prices rose approximately 7%, breaking above $106.

Crude oil prices rose significantly, with US crude futures breaking through $106. In New York's late trading session, US crude futures surged about 7%, settling at $106.88 per barrel.

[Precious Metals] The metals market is broadly down, with gold prices falling to a near one-month low.

Precious Metals:Gold prices continued to decline, dropping to a near one-month low. In New York’s late trading session, spot gold fell 1.15% to $4,544.05 per ounce; US gold futures dropped approximately 1% to $4,561.50 per ounce.

Metals Futures Market:The precious metals and non-ferrous metals markets continued to fall, with spot silver declining 2.44% to $71.2949 per ounce; London copper futures falling about 0.3% to $12,990 per ton.

[Disclaimer]

The content above is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), sourced from market information gathered from various channels. Neither Harbor Family Office nor its group members participated in preparing the content, nor did they explicitly or implicitly endorse or approve it. 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 information 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 in any manner. Copyright belongs to Harbor Family Office and relevant providers.

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