Federal Reserve's Major Announcement: Chinese Stocks Dip, European Markets Fall Across the Board

 

 

 

The three major U.S. stock indices collectively rose on Tuesday, with the Dow Jones up 0.28%, the Nasdaq rising 0.63%, and the S&P 500 gaining 0.57%. Both the Dow and the S&P 500 set new all-time highs. The Nasdaq Golden Dragon China Index fell 0.84%, with most popular Chinese concept stocks declining.

European stock markets, however, saw widespread declines, with France's CAC40 and Italy's MIB indices both dropping nearly 1%.

The latest meeting minutes released by the Federal Reserve sent strong signals.

On November 26 local time, the Federal Reserve published the minutes from the Federal Open Market Committee (FOMC) meeting held from November 6 to 7. According to the minutes, the Fed may cut interest rates by another 25 basis points in December.

The minutes indicate that at the November meeting, the Fed decided to lower the target range for the federal funds rate by 25 basis points, bringing the benchmark rate to a range of 4.5% to 4.75%. It suggested that further adjustments to monetary policy would help maintain robust economic and labor market conditions while continuing to push inflation downward. Participants agreed that it was appropriate to continue reducing the Fed's security holdings. They anticipated that if data were in line with expectations, and inflation continued to decline to 2%, with the economy remaining close to maximum employment, it would be reasonable over time to gradually shift to a more neutral policy stance.

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According to the minutes, all FOMC participants agreed that economic activity continues to expand at a solid pace. Since early this year, the pace of job growth has slowed, and the unemployment rate has risen but remains low. The participants unanimously stated that inflation has been moving toward the 2% target, though the inflation rate remains slightly elevated.

On November 26 local time, European stock markets fell across the board. By the close, the UK's FTSE 100 index was down 0.40%, France's CAC40 index declined 0.87%, Germany's DAX index decreased 0.56%, Italy's MIB index fell 0.78%, and the European STOXX50 index slid 0.79%.

The three major U.S. stock indices fluctuated upward. By the close, the Dow Jones Industrial Average rose 0.28%, the Nasdaq increased 0.63%, and the S&P 500 climbed 0.57%. The Dow and S&P 500 both reached historical highs.

Most large tech stocks saw gains. The Wind U.S. Tech Giants Index rose 1.33%, with Amazon up 3.18%, Microsoft rising 2.20%, META increasing 1.49%, Apple gaining 0.94%, Google-A up 0.70%, Nvidia rising 0.66%, and Tesla down 0.11%.

The performance of U.S. bank stocks was mixed. JPMorgan Chase fell 0.15%, Goldman Sachs rose 0.37%, Citigroup dropped by over 1%, Morgan Stanley declined by more than 1%, Bank of America increased by 0.49%, and Wells Fargo rose by 0.61%.

Popular Chinese concept stocks mostly declined, with the Nasdaq Golden Dragon China Index down 0.84%. Kingsoft Cloud fell by over 14%, NIO dropped more than 7%, Huazhu Group fell over 5%, Li Auto declined by over 2%, XPeng Motors fell nearly 2%, and Gaotu Group, Bilibili, Douyu, and Weibo all dropped more than 1%. Alibaba experienced a slight decline. However, Qudian surged over 31%, Youdao gained over 15%, and Wuxi Technology and Qifu Technology rose by more than 5%, while JD.com increased by over 2%.

Notably, the auto sector in the U.S. faced significant declines due to tariff threats, with General Motors and Ford experiencing sharp declines of 8.99% and 2.63%, respectively.

According to Securities Times, on November 26 local time, Goldman Sachs chief economist Jan Hatzius pointed out in a report that the proposed tariffs would significantly raise consumer prices in the U.S.

Hatzius explained, "Based on our experience, for every 1 percentage point increase in effective tariff rates, the core PCE (Personal Consumption Expenditures Price Index), a favored inflation indicator of the Fed, rises by 0.1%. Thus, if the tariff proposals are implemented, core PCE inflation could increase by 0.9%."

According to Goldman Sachs' calculations, countries proposing to increase tariffs account for 43% of total U.S. goods imports, and these tariffs would generate less than $300 billion in revenue annually.

The inflation indicator favored by the Fed—the October Personal Consumption Expenditures Price Index (PCE)—is set to be released on November 27 according to Eastern Time. Wall Street generally expects the upcoming inflation figures to reflect persistent price pressures in the U.S., reinforcing the Fed's cautious stance on future rate cuts.

CIMG experienced several trading halts, closing up 153.97% and peaking at over 190% during the session, with a turnover rate of 2213.94%.

On November 21, CIMG announced that its Chinese subsidiary, Zhongyan Shangyue Technology Co., Ltd. (referred to as "Zhongyan Shangyue"), signed a distribution contract with Beijing Wangbo Chengda Trading Co., Ltd. CIMG also announced that Zhongyan Shangyue has signed contracts with multiple Chinese distribution companies to gradually introduce the Maca Noni beverage into a large number of retail stores. The goal is to sell and distribute Maca Noni in 25,000 convenience stores of uSmile PetroChina, 400 convenience stores of Guangdong Petroleum Co., Ltd., 129 convenience stores at energy stations in Chengdu, Sichuan Province, and no less than 300 self-service stores within the next three years.

CIMG Inc. is a digital marketing, sales, and distribution company focused on food and beverages, dedicated to reshaping digital marketing and distribution through technology applications.

In the commodity market, spot gold saw a slight rebound. As of 5:53 AM Beijing time, spot gold was up 0.30%, priced at $2632.500 per ounce, while COMEX gold futures rose 0.55%, trading at $2632.9 per ounce.

International oil prices experienced a slight decline. ICE Brent crude fell 0.28%, and NYMEX WTI crude dropped 0.29%. LME copper, LME aluminum, LME nickel, and LME tin all declined, while LME zinc rose by over 1%.

JPMorgan Chase maintained its long-term bullish outlook on gold, predicting that gold prices will rise to $3000 per ounce next year. The upward trend in precious metals is expected to continue, as constrained supply sets the stage for rising prices in base metals after 2025. It is anticipated that silver prices will reach $38 per ounce by the end of 2025. Platinum is expected to rebound strongly, moving toward $1200 per ounce.

JPMorgan also noted its strategic bearish view on base metals in the near term, forecasting that nickel prices will fluctuate around $16,000 per ton by 2025. Copper prices may still have room for further declines in the short term, with a forecast of a rise to approximately $10,400 per ton by the fourth quarter of 2025.