Market Insights: May 21st, 2024

Financial Markets and Regulation of foreign exchange dealersMetals

• Stock Market

1. NVIDIA's stock price surged by more than 80%, but recent options trading indicates some investors are betting on a decline.
2. The three major A-share indices opened slightly lower. The Shanghai Composite Index fell by 0.2%, the Shenzhen Component Index by 0.3%, the ChiNext Index by 0.22%, and the STAR 50 Index by 0.17%. The combined trading volume of the Shanghai and Shenzhen markets reached 7.445 billion yuan. The industrial metals sector was actively traded.
3. Goldman Sachs raised its target for the CSI 300 Index to 4100 points, reflecting a positive market outlook.

• Precious and Non-Ferrous Metals

1. Spot silver surged by 2% and then plummeted, currently down 1.2% to $31.4. Domestic silver narrowed its gain to 4% after soaring over 7%. Shanghai silver increased more than 6% in early trading. London copper rose by 2.27% to $10,958.5 per ton, a historic high. Shanghai copper climbed by 0.99% to 87,600 yuan per ton.
2. New York futures gold and copper hit consecutive record closing highs for two days. Copper futures rose nearly 3% intraday, and silver futures hit an eleven-year high for the fourth straight day.

• Cryptocurrencies

Overnight, Ethereum saw its largest gain in 18 months, driving up the prices of Bitcoin and other cryptocurrencies. Ethereum surged nearly 20%, and Bitcoin climbed over 7%, breaking the $70,000 barrier.

Chinese Stocks

• U.S. Trading Session

The index of Chinese stocks dropped by over 1%. Li Auto fell nearly 13% after its earnings report, Haidilao fell more than 6% on its second day of listing, NIO fell over 1%, while Zeekr gained more than 4%. Offshore Yuan fell over 100 points, dropping below 7.24.

Asset Valuations

• Silver and Bitcoin

Silver has once again surpassed Bitcoin in market capitalization, becoming the world's eighth-largest asset. Silver's market cap is $1.828 trillion, approximately $500 billion more than Bitcoin, which currently has a market cap of $1.322 trillion, the world's ninth-largest asset.

Company Developments

• Hims & Hers Health

Launched a $199 per month weight loss injection to challenge the market's expensive weight loss drugs. Revenue from weight loss products is expected to surpass $100 million by the end of 2025.

• Li Auto

Released its Q1 2024 earnings report, with revenue of 25.6 billion yuan, up 36.4% year-on-year, but down 38.6% quarter-on-quarter. Net profit was 591 million yuan, down 36.7% year-on-year and 89.7% quarter-on-quarter.

Macroeconomics

• Chinese Real Estate

CITIC Securities noted that China's real estate market is entering a consumer goods era, marked by four trends: reshaping of property and land pricing, a downward shift in sales and investment volumes, rapid market differentiation, and rebalancing of assets and liabilities.

Global News

• Iran

Iranian President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian were killed in a helicopter crash in the Varzaqan region of East Azerbaijan Province.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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