【True Vision Finance】US existing home sales in September fell to a nearly 14-year low; China will vigorously develop various types of pension annuity insurance

As mortgage rates surged recently, U.S. home purchase and refinancing applications dropped to their lowest since August last week, while existing home sales in September fell 1.0% to a nearly 14-year low.

Overnight Highlights

U.S. stocks closed lower on Wednesday as rising Treasury yields pressured large-cap stocks and investors grew less confident in the Fed's aggressive rate cuts. The dollar rose above 153 yen for the first time in nearly three months, driven by strong U.S. economic data and expectations of diverging rate-cut paces among major central banks. Oil prices declined after data showed U.S. crude inventories rose more than expected despite a rebound in refining activity, though prices are still up about 2% this week as traders assess ongoing Middle East conflicts. Gold fell over 1% after hitting a record high, as a stronger dollar and higher Treasury yields offset safe-haven demand linked to the U.S. election on November 5 and Middle East tensions.

International News

The Fed's Beige Book reported that economic activity was flat in most U.S. regions since early September, based on surveys of business contacts across districts.

As mortgage rates surged recently, U.S. home purchase and refinancing applications dropped to their lowest since August last week, while existing home sales in September fell 1.0% to a nearly 14-year low.

ECB President Christine Lagarde said the central bank has made very good progress in fighting inflation and expects inflation to rebound above 2% in the coming months.

ECB Governing Council member Centeno suggested the possibility of a larger rate cut at the next policy meeting, though the final decision will depend on data.

The Bank of Canada cut its benchmark overnight rate by 50 basis points to 3.75%, the largest reduction since the early days of the COVID-19 pandemic in March 2020.

Tesla (TSLA.US) reported Q3 earnings above Wall Street expectations and projected a slight increase in annual vehicle deliveries, signaling a rebound in demand for its EVs. Shares surged about 12% after hours. See: [Market Review] Tesla (TSLA.US) Valuation to Remain Volatile

Bloomberg: Apple (AAPL.US) is nearing production of MacBook Air with M4 chips and plans to launch a new entry-level iPad next year.

Greater China News

The BRICS summit adopted the Kazan Declaration, proposing joint projects from grain exchanges to cross-border payment systems.

China's National Financial Regulatory Administration issued a notice promoting commercial pension insurance, encouraging insurers to leverage its long-term wealth accumulation and stable pension income features.

According to the U.S. Federal Register, the Commerce Department is evaluating the revocation of some anti-dumping and countervailing duties on Chinese-made crystalline silicon solar cells.

Bloomberg: TSMC (TSM.US) halted shipments to a specific client in mid-October after discovering chips produced for them were ultimately used by Huawei. See: [Market Review] TSMC (TSM.US / 2330.TT): Major Client Uncertainty Fades, Upgrade to Buy

Commodities & Forex

The Bloomberg Dollar Index rose amid fading Fed rate-cut bets and pre-election positioning. The yen weakened past 153 per dollar for the first time in three months.

Crude oil fell as U.S. inventories grew more than expected and the Biden administration pushed for a Middle East ceasefire.

Gold retreated from record highs as overbought signals prompted profit-taking. Zinc spot premiums hit a two-year high.

Earnings & Data Watch

U.S. Initial Jobless Claims (Oct 19) (Est.: 242K, Prev.: 241K)

Eurozone Oct Manufacturing PMI (Est.: 45.3, Prev.: 45)

Source: Terry Chow

Golden Horse Capital Management (Hong Kong) Limited