Market Insights: April 11th, 2024

Economic Data:

• Inflation Data: The National Bureau of Statistics released the CPI (Consumer Price Index) and PPI (Producer Price Index) data for March, revealing that the CPI increased by 0.1% year-on-year, noticeably slowing down from the previous month, while month-on-month it fell by 1.0%, marking the first decline in three months. Additionally, the PPI decreased by 2.8% year-on-year in March, with the rate of decline expanding for the second consecutive month, and month-on-month it decreased by 0.1%, falling back from the previous month.

Financial Market Dynamics:

• Bond Market: Following the release of CPI data, the U.S. bond market experienced significant fluctuations. The yield on two-year U.S. Treasury bonds rose by more than 20 basis points, and the yield on ten-year Treasury bonds broke through the critical level of 4.5%, reaching a new high of nearly five months.
• Currency Market: The U.S. Dollar Index surged by more than 1%, reaching a new high of nearly five months. Simultaneously, the Japanese Yen fell below 153 against the U.S. Dollar, marking a new low since 1990.
• Commodities Market: Following the release of inflation data, commodity prices in the financial markets also experienced fluctuations. Gold prices fell by more than 1% during trading, dropping from record highs; meanwhile, oil prices halted their consecutive declines, rising by more than 2% during the session and closing up by more than 1%, approaching a five-month high.
• Cryptocurrency Market: After the release of CPI data, Bitcoin fell below $68,000, refreshing the daily low before briefly climbing back above the $70,000 mark.

Technology Industry Dynamics：

• Meta Platforms announced the deployment of a self-developed chip, aimed at reducing dependence on external chip suppliers. This move is analyzed as being in support of its artificial intelligence services and to continue advancing the company's independent innovation in the technology sector.

International Markets and Company Dynamics：

• Goldman Sachs Asset Management (GSAM) is making significant adjustments to its investment portfolio, moving funds from high-performing technology stocks to investing in energy stocks and the Japanese stock market with more attractive valuations. This adjustment reflects a shift in investment strategy across different industries and regions to adapt to current market changes.
• Investment banking activities in Hong Kong have slowed down, but acquisitions of companies listed on the Hong Kong Stock Exchange remain exceptionally active. The latest case of interest involves L'Occitane, which may end its 14-year listing in Hong Kong. It is reported that the privatization deal for L'Occitane is about to be completed with the assistance of Blackstone's funding.

Individual Stock Performance：

• Construction machinery concept stocks performed outstandingly in the early trading session, with LiuGong up by more than 6%, Anhui Heli up by more than 5%, and Sany Heavy Industry, XCMG Machinery, Zoomlion, and Hangcha Group also seeing their stock prices increase by more than 3%. The construction machinery ETF, which tracks the CSI Construction Machinery Index, rose by nearly 3%, reaching a new high since its listing.

Asian Market Performance：

• Performance of Chinese Concept Stocks: During the U.S. stock market hours, the index of Chinese concept stocks ended its two consecutive days of gains, with NIO falling by more than 2%, but Alibaba rising by more than 2%.
• Trend of the Renminbi Exchange Rate: The offshore Renminbi fell by more than 200 points during trading, breaking below the 7.26 level.
• Performance of Hong Kong Stocks: Hong Kong stocks soared, with the Hang Seng China Enterprises Index rising by 20% from its low point, entering a technical bull market.
• Performance of A-shares: A-shares adjusted throughout the day with fluctuations, but specific gains and losses were not mentioned.

Closing Situation of U.S. Stocks：

• Dow Jones Industrial Average: Closed down by 1.09%.
• Nasdaq Composite Index: Closed down by 0.84%.
• S&P 500 Index: Closed down by 0.95%.