Overnight US Stocks | Three major indices rise, with the Golden Dragon Index up over 4%, while international oil prices plummet over 6%

According to Zhitong Finance, on Monday, the three major indices rose, Chinese concept stocks and the Bitcoin sector rose, tensions in the Middle East eased, and international oil prices plummeted by over 6%.

[US Stocks] At the close, the Dow Jones rose by 273.17 points, or 0.65%, to 42,387.57 points; the Nasdaq rose by 48.58 points, or 0.26%, to 18,567.19 points; the S&P 500 rose by 15.40 points, or 0.27%, to 5,823.52 points. Bitcoin-related stocks collectively rose, with Coinbase (COIN.US) up over 5%, Chinese concept stocks rising, the Golden Dragon Index up over 4%, Beike (BEKE.US) up over 6%, and Bilibili (BILI.US) up over 7.6%.

[European Stocks] The German DAX30 index rose by 85.26 points, or 0.44%, to 19,532.65 points; the UK FTSE 100 index rose by 40.74 points, or 0.49%, to 8,289.58 points; the French CAC40 index rose by 59.40 points, or 0.79%, to 7,556.94 points; the Euro Stoxx 50 index rose by 27.46 points, or 0.56%, to 4,970.55 points; the Spanish IBEX35 index rose by 108.80 points, or 0.92%, to 11,921.30 points; the Italian FTSE MIB index rose by 233.90 points, or 0.67%, to 35,010.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index rose by over 1.8%, the Indonesia Jakarta Composite Index fell by 0.78%, and the South Korea KOSPI index rose by over 1%.

[Cryptocurrency] Bitcoin rose by over 2.8% to $69,881.74 per coin; Ethereum rose by over 2% to $2,561.07 per coin.

[Crude Oil] US crude oil futures prices fell by over 6% on Monday, marking the largest single-day decline in over two years. Israel's avoidance of attacking Iran's oil or nuclear facilities signaled a cooling of tensions in the Middle East, leading to a sharp drop in oil prices. The West Texas Intermediate (WTI) crude oil futures prices for December delivery on the New York Mercantile Exchange fell by $4.48, or 6.13%, to $67.38 per barrel, marking the largest single-day decline since a 7.93% plunge on July 12, 2022. Brent crude oil futures prices for December delivery on the Intercontinental Exchange fell by 6.09% to $71.42 per barrel.

[Gold] COMEX silver futures rose by 0.21% to $33.85 per ounce, while COMEX gold futures remained unchanged at $2,754.7 per ounce.

[Metals] Most London metals closed lower, with LME copper down by 0.15%, LME aluminum down by 0.86%, LME nickel down by 0.95%, and LME zinc up by over 1.6%.

[Macro News]

The US Treasury Department has lowered its quarterly borrowing estimate to $546 billion. The US Treasury Department has lowered its estimate of federal borrowing for this quarter, while continuing to expect a year-end cash balance of $700 billion. The federal debt limit will be reinstated after the end of the year. The US Treasury Department stated on Monday that it currently estimates a net borrowing amount of $546 billion for October to December, lower than the July estimate of $565 billion Officials keep their year-end cash estimates unchanged. The reduced borrowing demand this quarter is mainly due to the cash reserves at the end of September being higher than the Ministry of Finance's expectations. Prior to the announcement on Monday, traders had varying expectations for the latest borrowing scale. Strategists at Morgan Stanley had previously expected a reduction to $529 billion. However, a team at BNP Paribas in France expected an increase to $600 billion. The cash balance at the end of September was approximately $886 billion, while the Ministry's estimate at the end of July for the end of September was $850 billion. As of Thursday, the cash balance was around $834 billion.

Bitcoin traders once again target the $70,000 mark with funds flowing into US ETFs. Bitcoin traders are once again eyeing the $70,000 mark reached in June, as cryptocurrency prices fell across the board last Friday, with funds steadily flowing into US Exchange-Traded Funds (ETFs). A report by CoinShares shows that $910 million flowed into digital assets last week, pushing the inflow for the year to date to $27 billion, nearly three times the record high in 2021. The report indicates that Ethereum, as the second-largest digital asset, saw an outflow of $35 million last week, the largest outflow among all assets. Options traders have also been increasing their bets, expecting Bitcoin to reach $80,000 by the end of November regardless of the US election outcome, hitting a record high.

Morgan Stanley: US stock performance largely follows the pattern of the 2016 election. Strategists at Morgan Stanley state that the current trend in the US stock market largely resembles the pattern during the 2016 US presidential election, although this time, signals are more mixed under different economic conditions. The team led by Michael Wilson noted that the outperformance of financial and industrial stocks indicates a direction of market movement that is somewhat similar to 2016. "However, beyond the financial sector, the magnitude of fluctuations in these sectors is not convincing, and the financial sector has also benefited from a strong earnings season and improving fundamentals," they wrote in their report.

Over 43.3 million people have voted early in the US election. According to calculations released by Florida State University's website, over 43.3 million American citizens have voted early in the upcoming presidential election scheduled for November 5th, with 21.9 million voting in person and 21.4 million voting by mail. Texas has the highest number of early voters, with around 5.4 million people. Florida ranks second with 4.6 million people, followed by California with 4.2 million people.

[Stock News]

Ford (F.US) weakens profit outlook, stock price falls after hours. Ford Motor Company announced on Monday that it expects full-year profits to only reach the lower end of expectations, with the stock price falling 5% in after-hours trading. Ford stated that it expects its pre-tax profit for the year to be around $10 billion, instead of the previous range of $10 billion to $12 billion. Chief Financial Officer John Lawler mentioned that high warranty costs and supply chain issues have burdened Ford's operational performance this year, with recent hurricanes adding to the challenges. He also noted that competition from rivals producing affordable electric vehicles has hindered Ford's progress in cost reduction However, the profit decline in the third quarter was lower than expected. The company announced a net profit of $900 million in the third quarter, or 22 cents per share, lower than the 30 cents in the same period last year. The cancellation of production of a three-row electric SUV in August led to a $1 billion loss, impacting performance.

Apple Intelligence officially launched and released the new M4 version iMac. Apple (AAPL.US) announced that Apple Intelligence is officially available on iPhone, iPad, and Mac. At the same time, Apple released a new iMac equipped with the M4 chip and Apple Intelligence, with a starting price of $1299 (starting at 10,999 yuan in China), equipped with 16GB of memory, and will be launched on November 8th.

Social media brokerage Robinhood (HOOD.US) enters the US election betting market, allowing users to bet on contracts for Harris or Trump. The up-and-coming US brokerage Robinhood announced that starting from Monday, eligible US citizens can trade election prediction contracts for Harris and Trump, betting on who will win the election. Due to Kalshi recently winning a lawsuit against the CFTC and users continuing to bet on political election results, the political prediction market has heated up, and Robinhood is also trying to get a piece of the action.

【Major Banks' Ratings】

Citi: Raised the target price of American Airlines (AAL.US) from $13.5 to $16