Market Insights: Mar 28th, 2024

Stock Market Performance:

• The three major A-share indexes began Thursday's session mixed, with the Shanghai Composite opening down 0.15%, the Shenzhen Component Index down 0.01%, and the ChiNext Index up 0.04%.
• Sectors such as low-altitude economy, flying cars, and military industry saw significant gains, while food, ETC, and Douyin small stores experienced leading declines.
• In individual stocks, China Everbright Bank plummeted over 7%, with a transaction volume of nearly 400 million Yuan. In addition, the Hong Kong-listed China Everbright Bank (06818) also experienced a sharp decline of over 10% in the morning session.

Company Investments:

• Amazon announced an additional investment of 2.75 billion USD in the artificial intelligence startup Anthropic, marking the largest venture capital investment in Amazon's history.
• Trump Media & Technology Group Corp. (ticker DJT), owned by Trump, has seen its share price continuously rise, with an overnight surge of 14% in US stocks, reaching 66.22 USD, and a market value of approximately 8 billion USD. This increase has boosted Trump's personal net worth to 7.1 billion USD.

Forex Market:

• The Japanese Yen to USD exchange rate briefly approached 152 on Wednesday, a level considered by the market as the threshold for potential direct intervention by the Japanese government. Previously, in 2022, the Japanese government had intervened at this level. Subsequently, there was a modest rebound in the Yen, but it was not strong and dropped later in the day.
• On Thursday in Tokyo, the exchange rate of the Japanese Yen to USD was roughly flat at 151.35, slightly recovering about 0.4% from Wednesday's low. This year, the Yen to USD exchange rate has depreciated about 7%, making it one of the worst-performing major currencies.

Commodity Market:

• Crude oil fell for two consecutive days, with mid-session losses exceeding 1%, but the decline narrowed by the close.
• Gold rose for three consecutive days, setting a new closing historical high.
• Copper on the London Metal Exchange reached new lows for two consecutive weeks, while lead on the London Metal Exchange fell for six straight days to a six-week low.

Market Sentiment:

• This round has seen the Shanghai Composite Index firmly above 3000 points for 19 trading days. However, on March 27th, the market once again fell below 3000 points, ending two days of net purchases by northbound funds, with a net sell-off of 7.249 billion throughout the day. Despite 3000 points having no technical significance, investors' fear of a decline persists.

Today's Market:

• The low-altitude economy concept stocks exploded, with stocks like Shenzhen Expressway and Jiangxi Ganyue at their trading limit by 10:05, and others like Jindun Shares and Les Information seeing gains of over 10%.
• Index performance: The Shenzhen Component Index rose by more than 1%, the ChiNext Index by 0.71%, and the Shanghai Composite Index by 0.25%, returning to above 3000 points with 4500 stocks advancing.

Global Stock Market Performance:

• Overnight, the three major US stock indexes closed higher, with the Dow up 1.22%, the Nasdaq up 0.51%, and the S&P 500 up 0.86%. Major European stock indexes also rose. The FTSE China A50 index futures opened down 0.18% today. The Nikkei 225 opened down 1.1%, and the TOPIX index opened down 1.2%. The South Korean KOSPI index opened roughly flat.