Export data beat expectations, CSI 300 leads Asian markets higher
Asia-Pacific markets mostly rose in choppy trading on Thursday following the former president’s appointment Donald Trump Defeat Vice President Kamala Harris for the White House in the 2024 presidential election.
Mainland China’s CSI 300 index reversed its decline and led Asian stock markets higher, rising 3.02% to close at 4,145.7 points. Hong Kong Hang Seng Index It initially fell but also reversed course in the final hour of trading, rising 2%.
Export data released by China in October showed Significantly exceeded market expectations.
Japanese Nikkei 225 Index It was the only major index to post a negative value, falling 0.43% to close at 39,381.41 points, but the composite index rose 1% to 2,743.08 points.
Korean Cospi The small-cap Kosdaq index rose slightly to 2,564.63 points, but fell 1.32% to close at 733.52 points.
— Lim Hui Jie
Expectations for rate cut in January drop
With Trump’s election victory, U.S. Treasury yields have risen, and expectations for the Fed to cut interest rates this winter have declined.
The federal funds rate, which determines how much banks charge for overnight loans, currently has a target range of 4.75% to 5.0%. At this point it’s pretty much a foregone conclusion The Federal Reserve will decide to cut interest rates by 25 percentage points, equivalent to 25 basis points, at its meeting on Thursday.
According to market pricing, the probability of another 25 basis point interest rate cut in December is currently 71% CME FedWatch Tool. The probability on Wednesday was 77%, compared with 72% a week ago. Future interest rate probabilities in CME’s FedWatch tool are derived from trading in the 30-day federal funds futures contract.
On the other hand, expectations for a rate cut in January have changed due to Wednesday’s election. The CME Group’s FedWatch tool points out that the market is currently pricing in favor of suspending interest rate hikes in January.
In fact, the probability of another quarter-percentage point rate cut in January, following cuts in November and December, has fallen to 29% from 41% on Wednesday and 45% a week ago. Meanwhile, the likelihood that the Fed will keep rates unchanged in January has climbed to 54% from 48% on Wednesday and 44% last week.
—Lisa Kelley Han
Check after-hours stock trends
Here are some stocks that have performed strongly over the long term:
- Lyft — Ride-hailing company shares rose nearly 20%. Third-quarter revenue was $1.52 billion, beating consensus estimates of $1.44 billion, according to LSEG. Lyft forecast fourth-quarter bookings of $4.28 billion to $4.35 billion, beating Wall Street expectations, although the FactSet consensus forecast was just $4.23 billion.
- Solar Edge Technologies, Inc. — The maker of residential solar inverters fell 18% after its third-quarter revenue fell short of Wall Street estimates.
- Elf beauty — Cosmetics retail stocks rise 11% First quarter results stronger than expected and guided interest rate hikes.
— Alex Harling
Stock futures little changed
Stock futures were little changed shortly after 6 p.m. ET.
Futures tied to the Dow, S&P 500 and Nasdaq 100 were all trading slightly above flat. The move came after stocks surged in the previous session following the election.
— Alex Harling
