US Stocks fall as bond yields spike, Powell reiterates hawkish stance

Wall Street came off a session high following a $24 billion 30-year bond sale as yields spiked, while the fear gauge, the CBOE VIX, surged 7% to above 15. Fed Chair Powell said the US central bank is not confident that it has done enough to tame inflation and will not hesitate to tighten policy further if appropriate. Risk-off sentiment prevailed as the US dollar and gold climbed amid increased haven demands. Crude oil cut early gains and finished lower due to deteriorated demand outlooks on economic concerns.   Bitcoin popped to nearly 38,000 before pulling back to around 36,300 on Spot ETF approval optimism. Chinese stock markets deepened losses as the October CPI data (-0.2% y/y) showed the country remained in deflation. Asian stock markets are set to open lower. ASX 200 futures were down 0.13%, and Hang Seng Index futures slid 0.59%.

Chart of the Day:

Bitcoin, daily

Source: CMC Markets as of 10 November 2023

Company News:   

Disney (NYSE: DIS) jumped 7% following Q3 earnings result. The entertainment giant beat EPS expectations. Disney+ subscribers saw higher than expected growth of 150.2 million. The company raised its cost-cutting target to US$7.5 billion. Tesla (NDX: TSLA) fell 6% following analyst’s downgrade. HSBC set the price target at US$146, or 30% down from the current level, implying a “reduce” rating. Virgin Galactic (NYSE: SPCE) soared 19% following an announcement that it plans to spaceflight operations next year and laid off 185 staff.

ASX Corporate Actions:

Light & Wonder Inc. (LNW) will release the Q3 FY23 earnings. News Corp (NWS) will release the Q1 2024 earnings.

Today’s Agenda:

New Zealand Business Manufacturing Index RBA Monetary Policy Statement Chinese New Yuan Loans & M2 Money Supply