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As the process of handover of the US regime is about to begin, the uncertainty of the general election has cooled off. On Tuesday (24) US stocks opened, the Dow Jones industrial average rose more than 300 points or 1%, and the Nasdaq and S&P 500 rose almost 0.5%, the rate increased by 0.2%. The price of gold once fell below the $ 1,800 barrier to a 4-month low.
The General Services Administration (GSA) sent a letter to Biden on Monday (23) to inform that the transfer process will begin, which means that the political uncertainty of the last weeks may dissipate.
In addition, several foreign media cited insiders who reported that former Federal Reserve chair Janet Yellen will serve as the new finance minister in Biden’s cabinet.
According to market reports, Yellen’s first decision after taking office may be to restart a series of stimulus measures and support the loan scheme launched by the Federal Reserve and the Ministry of Finance earlier in the year. The current Secretary of the Treasury of the United States, Steven Mnuchin (Steven Mnuchin), decided last week not to provide funds for part of the Fed’s loan program.
Two pieces of news spurred market risk sentiment: the price of gold fell 1.8% to US $ 1804.1, hitting a 4-month low, and the US dollar index rose slightly.
Starting at 10:00 p.m. on Tuesday (24) Taipei time:
- The Dow Jones Index rose 302.97 points, or 1.02%, to 29,894.24 points temporarily.
- Nasdaq rose 53.77 points, or 0.45%, to 11,934.41 points temporarily
- The S&P 500 Index rose 16.93 points, or 0.47%, to 3,594.52 points temporarily
- Rates and media increased 4.63 points or 0.18%, temporarily reported at 2,599.88 points
- TSMC ADR fell 0.05% to $ 98.08 per share
- Yield on 10-year US Treasuries increased to 0.872%
- New York light crude oil rose 1.74% to $ 43.81 a barrel
- Brent crude rose 1.65% to $ 46.82 a barrel
- Gold fell 1.83% to $ 1804.10 an ounce
- The US dollar index rose 0.06% to 92,550 points
Focus actions:
Best Buy (BBY-US) fell 5.98% to US $ 114.74 in early trading.
Best Buy announced on Tuesday (24) that revenue for its fiscal third quarter (as of October 31) was US $ 11.85 billion, net profit was US $ 391 million, and Adjusted EPS reported US $ 2.06, both better than Refinitiv consensus expectations. In light of the uncertainty caused by the epidemic, Best Buy has not yet provided its financial forecast for the fourth quarter.
Tiffany & Co (TIF-US) was up 0.05% in early trading to $ 131.55.
The American jeweler announced Tuesday that its third-quarter revenue was $ 1.01 billion. Although they fell from the same period last year, they were still better than Wall Street expectations. Net income was US $ 119 million, an annual increase of 52%. Adjusted EPS reported $ 1.11, which was also better. expected.
Tiffany said that third-quarter revenue was primarily driven by the Asia-Pacific region. Sales in the region increased 30% in the third quarter, while the Americas fell 16%, and the decline has moderated from the previous quarter.
BlackRock (BLK-US) was up 1.52% in early trading to $ 693.28.
BlackRock agreed on Monday to acquire Aperio, a provider of custom index strategies, from private equity firm Golden Gate Capital for $ 1.05 billion in cash to expand its product portfolio. The latter mainly manages about 36 billion yuan in assets for high-net-worth clients and institutional investors.
Daily key economic data:
- The annual growth rate of the S&P 20 largest urban housing price index in the United States in September reported 6.6%, the previous value was 5.3%
- The monthly growth rate of the S&P 20’s largest urban home price index in the United States in September was 1.2%, down from 1.2%.
- The monthly growth rate of the FHFA home price index in the United States in September was 1.7%, down from 1.5%.
- At 23:00 Taipei time, the Richmond Fed November Manufacturing Index will be announced, the old value was 29.0
- At 23:00 Taipei time, the Consumer Confidence Index from the November US Consultative Conference will be released, which is expected to be 98.0 and the old value is 100.9
Wall Street Analysis:
As the Biden administration is about to continue with the regime transition process, Luc Filip, chief investment officer at SYZ Private Banking, believes this is good news, meaning that we will have an orderly regime transition, which It will alleviate the interference that has occurred in the last two to three weeks. The uncertainty of the market.
After it was reported that former Fed Chairman Yellen will be the finance minister of the Biden administration, Eric Barthalon, Allianz’s global head of capital market research, believes that Yellen clearly stated that he is willing to minimize economic risks to the downside, from the market. From one perspective, this is good news.
Bjarne Schieldrop, a commodities analyst at the Nordic SEB bank in Sweden, said: “It is true that global oil demand will pick up in 2021, and the market is eager to set prices.”
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