【True Burning Finance】October 23 Daily Report: Blackstone Executive Discusses U.S. Economy

Stock futures in the US and Europe fell due to poor corporate news. US Treasury prices declined as the cost of hedging against a prolonged slump in US Treasuries surged. The yield on Japan's 40-year government bonds climbed to 2.535%, the highest level since 2008, while the yen edged closer to 152. Brent crude oil prices dropped.

The Hang Seng Index $Hang Seng Index(00HSI.HK) opened 0.3% higher, gaining 55.03 points to 20,553.98, marking a second consecutive day of gains for Hong Kong stocks. Meituan contributed the most to the index's rise, climbing 2.9%. Chow Tai Fook Jewellery Group Limited saw the biggest increase, up 8.2%. In early trading, 32 out of 82 stocks advanced, while 45 declined; among the four sectors, two rose, with commercial and industrial stocks leading the gains.

After another lackluster day on Wall Street, Asian stocks diverged on Wednesday as rising bond yields and comments from Federal Reserve officials dampened expectations for US rate cuts. The global stock rally, which had driven multiple markets—especially New York—to record highs, appears to be running out of steam as traders assess the US central bank's plans ahead of stronger-than-expected economic data and the tense presidential election. They are also closely watching the Chinese government's moves, hoping for further measures to revive economic growth after a series of stimulus steps over the past month, while geopolitical tensions have pushed safe-haven gold to new highs.

UBTech Robotics Corp. agreed to place 5.06 million new H-shares at HK$86.18 apiece, sending its Hong Kong-listed shares down as much as 10%. The placement price represents a roughly 20% discount to the closing price of HK$107.7 on October 22.

China Telecom $CHINA TELECOM(00728.HK) reported solid third-quarter results, with analysts viewing the company as the most resilient among Chinese telecom peers against macro headwinds. Its Hong Kong shares rose as much as 1.1%.

Citigroup said China Unicom's third-quarter results met expectations, and its Hong Kong-listed shares $CHINA UNICOM(00762.HK) climbed as much as 4.1%. The brokerage also expects upward revisions to China Unicom's full-year earnings.

Online furniture retailer AuGroup Technology has begun gauging investor interest in its Hong Kong initial public offering, according to terms seen by Bloomberg News.

Soft drink producer China Resources C'estbon Holdings Limited surged more than 14% at the start of trading on Wednesday, adding to signs of improving sentiment in the Hong Kong market.

Blackstone Group CEO Steve Schwarzman said the US is likely to avoid a recession regardless of who wins the presidential election, as both candidates have proposed growth-friendly policies. "I don't see a risk of recession," he said.

Arm is revoking a license that allowed long-time partner Qualcomm to design chips using its intellectual property, escalating a legal dispute that could disrupt the smartphone and PC markets.

McDonald's shares fell in after-hours trading following an E. coli outbreak linked to Quarter Pounders, which sickened dozens—mostly in Colorado and Nebraska—and killed one person. Investigators are focusing on onion slices and fresh beef patties as potential sources of the bacteria.

Starbucks lowered its 2025 guidance after a sharp drop in third-quarter same-store sales.

Texas Instruments' earnings beat expectations, and CEO Haviv Ilan said the timing is ripe for an order recovery, sending its shares higher.

Tesla faces its first potential year-on-year sales decline.

Boeing is expected to post a massive loss.

Deutsche Bank's FICC revenue is set to surpass its US peers.

In today's forex and commodities markets, most Asian currencies weakened on Wednesday as uncertainty over US interest rates and the upcoming presidential election fueled risk aversion, while the dollar held near a three-month high. Over the past two weeks, Asian currencies have been under pressure as signs of US economic resilience bolstered bets that the Federal Reserve will slow the pace of rate cuts.

Oil prices fell on Wednesday after industry data showed a larger-than-expected rise in US crude inventories, though losses were capped as the market focused on diplomatic efforts in the Middle East amid Israel's continued strikes on Gaza and Lebanon. Gold prices edged higher in Asian trading, hitting a record high and extending recent gains as election tensions and ongoing Middle East turmoil spurred safe-haven demand.

Goldman Sachs said the euro could fall as much as 10% against the dollar if Trump wins and enacts high global tariffs and domestic tax cuts. The bank already expects the dollar to remain strong due to the US economy's outperformance and relatively high interest rates.

Source: Goldhorse Capital Extramile