The U.S. stocks ended with mixed results on Tuesday, pausing momentarily after recent consecutive gains.  

A rise in U.S. Treasury bond yields has created pressure on tech stocks. This week, all eyes are on Friday’s non-farm employment data to assess if the Federal Reserve’s interest rate hike cycle is concluding. 

Speculation over the Fed’s potential rate cut next year intensified as the labor market further slowed down, leading to a resurgence in U.S. Treasury bond prices. The 10-year U.S. Treasury yield, which briefly exceeded 5% in October, dropped below 4.2% on Tuesday following reports of record-low job vacancies since 2021. 

In a week dominated by labor market data, the Job Openings and Labor Turnover Survey (JOLTS) lagged behind all estimates in Bloomberg’s economist survey. These figures, released days before the crucial jobs report, anticipate an increase of 187,000 jobs in November. 

BMO Capital Markets analyst Ian Lyngen noted, “Overall, the labor data update is the dominant factor. US Treasuries have continued their bullish price trend, with markets eagerly awaiting tomorrow’s ADP report.” 

U.S. Stocks

Fundamental Analysis: 

Most large tech stocks saw gains, with Apple and NVIDIA surging over 2%.  

Apple’s market value also regained the $3 trillion mark. Amazon, Google, and Tesla gained over 1%.  

Digital music and streaming companies performed well, with Spotify rising over 2% and Sony up over 1%.  

Energy, non-ferrous metals, shipping, and accommodation sectors witnessed notable declines.  

Prague Energy fell by over 11%, fuel cell energy dropped nearly 8%, Century Aluminum dropped almost 7%, and U.S. Aluminum Corporation and Capi Maritime fell by over 5%.  

Southern Copper and Hilton Hotels both dropped over 2%. 

Popular Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index dropping by 1.52%.  

Weibo fell by over 3%, Tencent Music by over 2%, and JD, NetEase, iQIYI, and Bilibili by over 1%. Alibaba, Vipshop, Li Auto, Manbang, and Baidu experienced minor decreases.  

NIO and XPeng both surged over 1%. NIO reported third-quarter revenue of 19.07 billion yuan, marking a 46.6% year-on-year growth, and a historic high of 55,432 deliveries in the quarter. Pinduoduo and Futu Holdings saw marginal increases. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones fell by 79.88 points, a decline of 0.22%, closing at 36,124.56 points.  
• Nasdaq rose by 44.42 points, an increase of 0.31%, closing at 14,229.91 points. 
• S&P 500 Index dropped by 2.60 points, a decline of 0.06%, closing at 4,567.18 points. 

Hong Kong Stocks

Fundamental Analysis: 

Hong Kong’s three major indices bounced back, with most core tech stocks showing gains.  

NetEase rose nearly 4%, Baidu nearly 3%, and Meituan nearly 2%. Alibaba, however, experienced a near 1% decline.  

Automobile stocks generally rose, with NIO surging over 4%.  

Lithium battery stocks surged, with Ganfeng Lithium rising by over 7%.  

Medical equipment stocks experienced a major drop, with Microport plunging over 18%. 

Pharmaceuticals related to the WuXi conglomerate saw an upturn, with WuXi Biologics rising over 5%.  

WuXi Biologics announced on the Hong Kong Stock Exchange that it has been authorized to repurchase up to 425 million shares, accounting for 10% of the total shares issued on the shareholders’ annual meeting day.  

Earlier, WuXi Biologics had conducted a business forum, revising down revenue expectations for certain business segments. It predicted an 18%-20% revenue decline in Drug Development (D) and a 15%-18% drop in Manufacturing (M) revenue for 2023.  

These declines resulted in an adjustment of the annual revenue growth forecast from 30% to around 10%. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) rose by 0.74% to close at 16,448.06 points. 
• Hang Seng Tech Index (HSTECH) increased by 1.30%, closing at 3,730.49 points. 
• Hang Seng China Enterprises Index (HSCEI.) rose by 0.72%, closing at 5,649.94 points. 

FTSE China A50 Index

Fundamental Analysis: 

The A-share indices started low but bounced back during early trading.  

They briefly turned collectively positive, with the Growth Enterprise Market leading with over a 1% surge.

Ningde Times surged by 5%, but the market later declined, with the Shanghai Composite slightly dropping by midday. 

In sectoral performance, energy metals, batteries, minor metals, professional services, and cultural media were among the top gainers. 

Meanwhile education, traditional Chinese medicine, shipping ports, pharmaceutical commerce, and communication equipment faced declines.  

Themes such as lithium extraction, battery recycling, poultry, pork, lithium batteries, film and television, and scarce resources remained active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) dropped by 0.11%, closing at 2,968.9 points. 
• Shenzhen Component Index (SZCOMP) increased by 0.51%, closing at 9,518.33 points. 
• ChiNext Index (CHINEXT) surged by 0.67%, closing at 1,883.62 points. 
• SSE STAR Market 50 Index (SSE50) rose by 0.11%, closing at 846.71 points. 

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