US, Chinese, and Global Market Fluctuations: A Daily Economic News In-depth Analysis

US, Chinese, and Global Market Fluctuations: A Daily Economic News In-depth AnalysisOvernight, US stock markets saw mixed results. The Dow Jones Industrial Average fell 0

US, Chinese, and Global Market Fluctuations: A Daily Economic News In-depth Analysis

Overnight, US stock markets saw mixed results. The Dow Jones Industrial Average fell 0.28%, while the Nasdaq Composite rose 0.81%, and the S&P 500 gained 0.25%. Notably, the Nasdaq Composite and the S&P 500 both hit new all-time closing highs. For the week, the Dow Jones Industrial Average declined 0.6%, the Nasdaq Composite increased 3.34%, and the S&P 500 rose 0.96%.

In the cryptocurrency market, Bitcoin's price climbed back above US$100,000, boosting cryptocurrency-related stocks. Canan Inc. surged over 35%, BitDigital climbed more than 9%, and Coinbase jumped over 7%.

On the individual stock front, Tesla's share price rose over 5%, and Lululemon's stock soared nearly 16%, marking its best single-day performance in six years.

Chinese stocks listed in the US (Chinese ADRs) saw the Nasdaq Golden Dragon China Index rise 0.98%, accumulating a 2.15% increase for the week. Most Chinese ADRs performed strongly, with Youdao's stock price rising over 6%, Alibaba and JD.com both exceeding 2%, and iQiyi and NetEase both climbing over 1%. However, Gaotu Techedu fell over 4%, and New Oriental Education & Technology Group dropped over 1%.

Regarding US economic data, November's non-farm payroll employment increased by 227,000, closely matching the predicted 220,000 and contrasting with the previously reported 12,000 increase. The US Bureau of Labor Statistics revised the September and October non-farm payroll numbers, increasing September's figure from 223,000 to 255,000 and October's from 12,000 to 36,000. The revisions added a total of 56,000 jobs to September and October's combined figures.

International oil prices fell across the board. The January 2025 contract for US crude oil dropped 1.65%, closing at US$67.17 per barrel, with a weekly decline of 1.22%. The February 2025 contract for Brent crude oil fell 1.4%, closing at US$71.08 per barrel, and decreased 1.06% for the week.

Major European stock indices showed mixed results. The German DAX index rose 0.13%, closing at 20,384.61 points, marking a five-day high and a 3.86% weekly gain. The French CAC 40 index increased 1.31%, closing at 7,426.88 points, with a weekly increase of 2.65%. The UK FTSE 100 index fell 0.49%, closing at 8,308.61 points, but still showing a 0.26% weekly rise.

Domestic Policies and Economic Developments:

Premier Li Qiang chaired an executive meeting of the State Council. The meeting reviewed the comprehensive inspection of promoting high-quality development, discussed issues related to ecological protection in the Yellow River Basin, and deliberated on the draft amendment to the Civil Aviation Law of the People's Republic of China. The meeting emphasized using inspections to rectify problems, address bottlenecks in reform and development, and resolve pressing issues concerning enterprises and the public. It stressed treating problem lists as responsibility lists, thoroughly investigating common problems identified during inspections, and taking corrective actions. The meeting aimed to ensure that tasks scheduled for this year are completed, establish phased goals for ongoing tasks, and integrate problem rectification with current work to help achieve annual economic and social development goals. Furthermore, the meeting highlighted leveraging the role of comprehensive inspections in promoting work, commending successful efforts, promoting best practices, and stimulating enthusiasm for undertaking tasks.

The National Financial Regulatory Administration issued the "Action Plan for Promoting High-Quality Development of the Property and Casualty Insurance Industry through Strengthening Regulation, Preventing Risks, and Promoting Reform." The plan aims for stable growth, enhanced risk prevention capabilities, expanded coverage and depth, and improved comprehensive strength in the property and casualty insurance industry over the next five years. It also aims to establish a well-structured, well-governed, and orderly competitive market system. The plan emphasizes tiered and classified supervision, improving regulatory rating and classification systems, refining the application rules for rating results, and promoting the superiority and limitation of companies. It also proposes strengthening continuous supervision of important property and casualty insurance companies, implementing high-intensity supervision of companies with significant risks, studying procedures for upgrading supervision, exploring differentiated supervision based on business scope, and developing differentiated regulatory measures in areas such as corporate governance, institution establishment, and business operations.

An Xinhua commentary stated that China's central government has significant room for debt financing and deficit increases. The article analyzed this from the perspectives of government debt-to-GDP ratio and deficit ratio, pointing out that China's government leverage ratio is significantly lower than that of major economies and emerging markets. Citing IMF data, the article noted that the average government debt-to-GDP ratio for G20 countries reached 118.2% at the end of 2023, and 123.4% for G7 countries, while China's overall government debt totaled 85 trillion yuan, with a debt-to-GDP ratio of 67.5%. The article also emphasized China's cautious approach to the deficit ratio, typically below 3% in most years, significantly lower than other major global economies. Furthermore, it highlighted that China's local government debt has generated substantial effective assets, which are producing continuous returns, supporting high-quality economic development and serving as an important source of debt repayment funds.

The National Health Commission held a press conference to introduce information on technological innovation in the pharmaceutical field, stating that 32 drugs suitable for children have been approved for marketing, including 16 for rare diseases. Since 2016, the National Health Commission, along with relevant departments, has formulated and issued five batches of a total of 144 drugs on the "Encouraged Research and Application List of Pediatric Drugs" to meet the clinical needs of pediatrics.

Chinese coast guard vessels patrolled within the territorial waters of the Diaoyu Islands (Senkaku Islands), which China described as a lawful rights protection patrol.

Guangzhou Municipal People's Government Office issued the "Administrative Measures for Allocation-Type Affordable Housing in Guangzhou (Trial Implementation)," stating that existing houses meeting conditions such as clear ownership, suitable location, and appropriate size can be transformed into allocation-type affordable housing. Newly built allocation-type affordable housing projects should generally have a single-unit area not exceeding 90 square meters.

The Beijing Stock Exchange (BSE) released three bond business guidelines to further improve the BSE's bond market system and better serve the real economy.

The Ministry of Finance and the Ministry of Emergency Management allocated 5.272 billion yuan in central disaster relief funds to support local governments in providing winter and spring temporary relief for disaster victims, ensuring their safety and warmth during the winter.

International News:

Elon Musk donated US$259 million to groups supporting Donald Trump's 2024 presidential campaign, becoming one of the largest presidential campaign donors in US history.

Russian media reported that the Ukrainian armed forces used Poland's newest "Gavia" underwater drones to attack the Crimean Bridge for the first time. The Russian Ministry of Defense reported that its Black Sea Fleet aviation destroyed eight Ukrainian drones that day.

The US State Department approved the sale of medium-range air-to-air missiles to the Netherlands, estimated at US$807 million.

The foreign ministers of Iraq, Iran, and Syria met in Baghdad to discuss responding to the Syrian crisis.

US President-elect Trump nominated David Perdue as the new US ambassador to China.

The Colombian Attorney General's Office stated that no bodies were found in the hangar at El Dorado International Airport, contradicting a report by the UN Working Group on Enforced or Involuntary Disappearances which claimed approximately 20,000 unidentified bodies were found there.

Company News:

Kweichow Moutai publicly recruited operators for its JD.com and Tmall flagship stores, planning to provide 11 self-operated products with a total quota of 108 tons. The planned contract amount for a single store in 2025 is 100 million yuan.

Fonen Oriental was investigated by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure regulations.

Yang Zhilin, founder of Moonlit, responded to recent equity disputes with GSR Ventures and confirmed inviting Zhang Yutong as a co-founder.

Zhong Yu, former chairman of Kangdexin, was sentenced to 15 years in prison and fined 20.2 million yuan for crimes including illegal disclosure and non-disclosure of important information.

Shaanxi Coal Industry plans to acquire an 88.6525% stake in Shaanxi Coal Power Group for 15.695 billion yuan.