Global Daily Financial Market Summary: US Stocks Mixed, Chinese Stocks Wobble Amid Tightening Regulations, and Mega-Funding Resurfaces

Global Daily Financial Market Summary: US Stocks Mixed, Chinese Stocks Wobble Amid Tightening Regulations, and Mega-Funding ResurfacesDecember 19, 2024 saw mixed performance across global financial markets. US stock indices closed with a divergence: the Nasdaq fell 0

Global Daily Financial Market Summary: US Stocks Mixed, Chinese Stocks Wobble Amid Tightening Regulations, and Mega-Funding Resurfaces

December 19, 2024 saw mixed performance across global financial markets. US stock indices closed with a divergence: the Nasdaq fell 0.1%, the S&P 500 dipped 0.09%, while the Dow Jones Industrial Average rose 0.04%, ending a ten-day losing streak. Large tech stocks also showed mixed results. Nvidia, Netflix, and Amazon saw gains exceeding 1%, with Google and Apple posting slight increases; however, Intel fell over 1%, and Tesla, Microsoft, and Meta experienced minor declines. Significantly, Micron Technology plummeted over 16% after its Q2 earnings guidance disappointed, sparking market concerns. In the Chinese ADR market, the Nasdaq Golden Dragon China Index fell 0.06%, indicating a sluggish performance. Baidu and Fangdd Soufun saw declines exceeding 3%, and Douyu fell over 2%; conversely, Li Auto and New Oriental climbed over 2%.

On the US economic data front, initial jobless claims totalled 220,000 last week, below the projected 230,000 and the previous figure of 242,000, suggesting a robust US labor market. The final revision of Q3 GDP was 3.1% year-on-year, exceeding the forecast of 2.8% and the preliminary estimate of 2.8%, indicating resilient US economic growth. In the cryptocurrency market, Bitcoin briefly dipped below $96,000, reaching a low of $95,700, but recovered to $97,900 by press time. International crude oil futures prices fell, with January WTI crude closing down $0.67 (0.95%) at $69.91 per barrel, and February Brent crude declining $0.51 (0.69%) to $72.88 per barrel. Major European indices closed lower, with the German DAX 30 falling 1.39%, the UK FTSE 100 down 1.17%, the French CAC 40 down 1.22%, and the Euro Stoxx 50 down 1.58%. Notably, the Shanghai and Shenzhen stock exchanges announced the suspension of Stock Connect services during the Christmas period (December 24-26).

China Securities Regulatory Commission (CSRC) Chairman Yi Huiman met with Hong Kong Securities and Futures Commission (SFC) Chairman, Mr. Huang Tianyou, and CEO, Ms. Leung Fung-yee. Discussions focused on optimizing the Stock Connect mechanism, fostering collaborative development between the two markets, and strengthening Hong Kong's position as an international financial center. This move is interpreted by the market as a positive signal for further deepening cooperation between mainland China and Hong Kong's capital markets.

The US government is considering a ban on Chinese router manufacturer TP-Link based on national security concerns, prompting a response from the Chinese Ministry of Foreign Affairs, which firmly opposes the US's generalization of national security concepts and pledged to take decisive measures to protect the legitimate rights and interests of Chinese companies. This incident again highlights the complexity of US-China trade friction and the potential impact of geopolitical risks on global markets.

Chinese regulatory bodies are bolstering oversight within the financial sector. The "Management Measures for Online Marketing of Financial Products" is expected to be released soon, covering online marketing activities for various financial products such as deposits, loans, asset management products, insurance, and payments. The aim is to regulate online financial product marketing and protect consumer rights. Simultaneously, regulatory bodies in multiple regions have tightened control over public statements by securities firms' chief economists and analysts, requiring them to regulate their conduct, downplay personal publicity, and maintain market order and stability.

Furthermore, the State Taxation Administration announced a case of tax evasion by an internet streamer. Cheng Hu, a livestreaming influencer with 5 million followers, earned over 10 million yuan in three years from livestreaming sales but declared personal income tax of less than 5,000 yuan. He was subsequently ordered to pay 1.99 million yuan in back taxes, late fees, and fines. This case serves as a warning to internet streamers and related businesses to strengthen their tax compliance awareness.

In social news, the Guizhou Provincial High People's Court upheld the death sentence for Yu Huaying in a child trafficking case; and the Beihai City Intermediate People's Court sentenced former Secretary of the Liu Zhou Municipal Committee Wu Wei to death with a two-year reprieve, with confiscation of all personal property, for bribery and abuse of power. These verdicts demonstrate China's resolve in combating crime.

In international news, significant progress was made in Gaza ceasefire negotiations, with discussions focusing on a two-phase implementation; Russian President Putin stated that the situation in the special military operation zone is undergoing a significant transformation; the US Treasury Department imposed sanctions on four entities related to Iranian oil trade; the Swedish central bank lowered its benchmark interest rate by 25 basis points; and Tropical Cyclone Freddy hit Mozambique and Mayotte, causing significant casualties. These events reflect the complexities of the global geopolitical and economic landscape.

In corporate news, China Union Logistics Information Co., Ltd. was formally established in Shanghai, becoming the first state-owned enterprise in data technology; Ant Group clarified it has no plans for an IPO, dismissing rumors of a backdoor listing; Xiaomi responded to rumors about Tesla's China plant director Song Gang joining Xiaomi Auto; WeChat launched a "send gifts" feature for WeChat Mini Stores; ByteDance cautioned investors against believing market rumors to avoid investment losses; Jiyue Auto announced employee compensation plans; reports suggest Apple is in talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China; the year-end ranking battle for private equity funds heated up, with Oriental Harbour's Dan Bin temporarily leading the pack; China Film released a statement saying someone was falsely using their name for fundraising and has reported the matter to the police; and Databricks secured $8.6 billion in a J-round funding, making it the largest venture capital deal of the year. These updates reflect the trends in China's economic and technological sectors and the intense level of market competition.

Finally, it is imperative to emphasize that the above information is for reference only and does not constitute investment advice. Investors should make independent judgments based on their own circumstances and bear the corresponding investment risks.

• (Further information was omitted as it was repetitive.)