Global Stocks Plunge, Chinese ADRs Rise Amid Oil Price Surge
Overseas stock markets in Europe and America fell across the board overnight. Chinese concept stocks rose against the trend.
U.S. stocks closed lower
All three major U.S. stock indices closed slightly lower, with the Dow Jones falling by 0.14%, the Nasdaq Composite falling by 0.05%, and the S&P 500 index falling by 0.21%.
Popular technology stocks fluctuated, with Nvidia rising by more than 1%, AMD falling by 4%, Meta falling by more than 1%, and Apple and Tesla falling by less than 1%. Precious metals, metals and mining, and oil and gas sectors led the gains, with gold resources rising by more than 8%.
Popular Chinese concept stocks fluctuated, with the NASDAQ Golden Dragon China Index rising by 0.30%. Weibo, Tencent Music, and Alibaba rose by more than 1%, while Xiaopeng Motors, JD.com, Baidu, and Pinduoduo rose slightly; iQIYI fell by more than 4%, Li Auto and Futu Holdings fell by more than 3%, Bilibili fell by more than 2%, and NetEase and NIO fell by more than 1%.
The FTSE China A50 index futures closed up 0.66% in the night session, at 13,975 points.
COMEX gold futures closed up 0.81%, at $2,647.3 per ounce; COMEX silver futures closed up 2.1%, at $31.375 per ounce.
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International oil prices rose. As of the close on the 10th, the November delivery of light crude oil futures at the New York Mercantile Exchange rose by $2.61, closing at $75.85 per barrel, an increase of 3.56%; the December delivery of Brent crude oil futures in London rose by $2.82, closing at $79.40 per barrel, an increase of 3.68%.
The three major European stock indices all closed lower.
Data exceeded expectationsOn Thursday morning Eastern Time, the U.S. Department of Labor reported that the U.S. Consumer Price Index (CPI) for September rose by 0.2% month-on-month and 2.4% year-on-year, both exceeding expectations. Economists surveyed by Dow Jones had on average forecast a 0.1% month-on-month increase and a 2.3% year-on-year increase for September CPI.
The Consumer Price Index, a broad measure of the cost of goods and services in the U.S. economy, rose by 0.2% month-on-month and reached a year-on-year increase of 2.4%, both higher than the expected values of analysts surveyed by Dow Jones.
Excluding food and energy, the core CPI index for September increased by 0.3% month-on-month, with a year-on-year increase of 3.3%. Both core figures are also 0.1 percentage points higher than the average expected values of analysts.
Reports indicate that the U.S. Department of Labor's report suggests that while monetary policymakers consider their next interest rate actions, the pace of price increases in the U.S. in September unexpectedly accelerated, and inflation remains sticky.
Another set of data shows that the number of initial claims for unemployment benefits in the U.S. last week rose to the highest level in over a year, reflecting a weak labor market, partly due to a significant increase in unemployment benefit claims in Michigan and the impact of Hurricane Helen on some states.
The U.S. Department of Labor reported that for the week ending October 5th, the number of initial claims for unemployment benefits increased by 33,000, bringing the total to 258,000, the highest level since August 2023. Economists surveyed had predicted a median of 230,000.
The report also indicated that the number of continuing claims for unemployment benefits increased to 1.86 million for the week ending September 28th.
The market widely believes that CPI data will guide the Federal Reserve's next policy actions at the November meeting.
Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York, said: "I think the Fed was too hasty (in cutting interest rates by 50 basis points), and if you look at the minutes, they definitely disagreed on this point. I don't think the market will collapse, but today's CPI inflation data may erode the positive market sentiment."
Economists believe that core indicators better reflect underlying inflation than the overall CPI. Higher-than-expected inflation data, coupled with last week's strong U.S. non-farm employment report, may intensify the debate over whether the Fed will opt for a small interest rate cut next month or pause after the significant rate cut in September.Traders believe that the possibility of the Federal Reserve cutting interest rates by 25 basis points next month is higher. Despite strong data, inflation is still largely on a downward trend. The Federal Reserve's preferred PCE indicator has been moving closer to the Fed's 2% target.
Federal Reserve officials will meet again next month, and Thursday's CPI and Friday's PPI data will play an important role in their decision on how to handle interest rates. Over the past year, inflation has been on a downward trend, and a once weak labor market has attracted the attention of the Federal Reserve. However, last week's strong non-farm data eased concerns about the job market, making the timing and speed of future interest rate cuts by the Federal Reserve an unresolved issue.
Federal Reserve Vice Chairman Jefferson said on Wednesday this week that he prefers to "make decisions meeting by meeting."
Before the release of the CPI data, according to the CME's FedWatch tool, federal funds futures trading data showed that the possibility of the Federal Reserve cutting interest rates by 25 basis points in November is about 70%.
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