On Monday, US stock indices closed lower across the board, while Chinese stocks posted a broad rally. The Nasdaq Golden Dragon China Index surged more than 8.5%.
This week, investors are focused on the November CPI inflation data to gauge the Federal Reserve’s future policy moves. The Fed is set to hold its final monetary policy meeting of the year next week.
Dragged down by Nvidia, US stocks weakened on Monday. Nvidia’s stock fell nearly 4% at one point after China’s market regulator launched an antitrust investigation into the chipmaker.
Sam Stovall, Chief Investment Strategist at CFRA Research, commented, “The investigation into Nvidia over potential antitrust violations caught the market by surprise and caused some headwinds for tech stocks. However, I don’t think it will derail the broader year-end rally.”
Investors are also paying close attention to the upcoming US inflation data, scheduled for release this Wednesday.
Bank of America stated in a Monday report that the last two major events of the year — the CPI report and the Federal Open Market Committee (FOMC) meeting — could shape the market’s near-term direction. A sufficiently soft CPI report could confirm a rate cut by the Fed in December.
US-listed Chinese stocks surged overnight, driven by favorable policy signals. The Nasdaq Golden Dragon China Index closed up 8.54%, while the FTSE China 3x Bull ETF (YINN) soared 23.78%.
According to Caixin, on December 9, 2024, the Central Committee of the Chinese Communist Party held a Politburo meeting. The meeting emphasized the need for China to maintain a strategy of “stability first, progress through stability” and implement more proactive fiscal and moderately accommodative monetary policies.
The meeting also called for enhanced policy coordination, expanded policy toolkits, and stronger counter-cyclical adjustments. This marked a shift in China’s monetary policy stance from “prudent” to “moderately accommodative” — the first such change since the global financial crisis of 2009-2010.
US Markets
Fundamental Analysis:
Large-cap tech stocks posted mixed results. Tesla closed up 0.15%, with its intraday stock price surpassing $400, reaching its highest level since November 2021. Nvidia dropped 2.55% following the launch of an antitrust investigation by China’s State Administration for Market Regulation.
Meanwhile, geopolitical turmoil in Syria drove precious metals higher, with mining stocks rallying. Coeur Mining surged nearly 7%, while Hecla Mining and Harmony Gold both rose more than 6%, and Pan American Silver climbed over 5%.
Chinese stocks listed in the US posted significant gains, with the FTSE China 3x Bull ETF (YINN) up nearly 24%.
Tiger Brokers soared over 26%, Futu Holdings jumped over 17%, Bilibili climbed over 21%, Xpeng Motors rose over 13%, NIO increased by more than 12%, iQIYI climbed over 11%, and JD.com, Pinduoduo, and NetEase each rose over 10%.
Alibaba, Baidu, and Li Auto all gained more than 7%. Fangdd experienced multiple trading halts before closing up 52.14%.
Technical Analysis:
Market Trends:
- Dow Jones: Down 240.59 points, or 0.54%, at 44,401.93 points
- Nasdaq: Down 123.08 points, or 0.62%, at 19,736.69 points
- S&P 500: Down 37.42 points, or 0.61%, at 6,052.85 points
Hong Kong Markets
Fundamental Analysis:
Hong Kong’s three major indices opened higher but retreated during the session. Tech stocks posted broad gains, with NetEase up over 3%, JD.com up nearly 3%, Meituan up almost 2%, and Alibaba and Xiaomi both up more than 1%.
Brokerage stocks opened higher but later fell, with CMB Securities down more than 3%. After strong gains the previous day, CXO and Apple supply chain stocks saw notable pullbacks. Newly listed Maogeping soared more than 78% on its debut.
Film-related stocks led the gains, with Alibaba Pictures up more than 6%. According to the Lighthouse Professional Edition report on China’s film market for November 2024, the total national box office for November reached 1.877 billion yuan, up 11.4% year-on-year.
In November alone, 25 films achieved box office revenues of over 10 million yuan each, compared to 18 such films in the same period last year. Notably, the Central Committee of the Chinese Communist Party’s Politburo meeting emphasized boosting consumption, enhancing investment efficiency, and expanding domestic demand in 2025.
Technical Analysis:
Technical Analysis:
- Hang Seng Index: Up 1.00%, closing at 20,618.18 points
- Hang Seng Tech Index: Up 0.79%, closing at 4,693.48 points
- China Enterprises Index: Up 0.86%, closing at 7,424.12 points
FTSE China A50 Index
Fundamental Analysis:
All three major A-share indices posted strong gains in the morning session. As of midday, total market turnover reached 1.5248 trillion yuan, an increase of 416.7 billion yuan compared to the previous session. Over 4,600 stocks rose across the two main exchanges.
PEEK materials, humanoid robots, AI applications, and food stocks were among the top gainers, while ST stocks and precious metals underperformed.
The robotics sector remained active, with multiple stocks hitting their daily upper limits, including Dongfang Precision, Giant Wheel Intelligent, Fenda Technology, Mingzhi Electric, Keli Sensing, Aishida, and Fulian Precision. PEEK materials were also among the top-performing concepts, with Zhongyan Shares, Xinhai New Materials, Waterwood Shares, and Zhongxin Fluorine all hitting their daily upper limits.
AI application stocks surged, with popular stocks like Zhidemai, SensingTech, Hanvon, Guangdong Media, Aofei Entertainment, and Bona Film Group all hitting their daily limits.
The consumer sector showed persistent strength, with Yiming Foods recording its 11th consecutive daily limit-up, joined by Liziyuan, New Dairy, Panda Dairy, Yonghui Supermarket, Xi’an Catering, and Huangshanghuang, all of which hit their daily limits.
Technical Analysis:
Market Trends:
- Shanghai Composite Index: Up 1.57%, closing at 3,456.12 points
- Shenzhen Component Index: Up 2.08%, closing at 10,955.23 points
- ChiNext Index: Up 2.21%, closing at 2,298.23 points
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