【Headlines Summary】
1. US stocks retreated from highs on Wednesday (7th), with all three major indices closing lower. Rising yields on long-term US bonds continued to weigh on markets amid concerns over persistent inflation and high interest rates. The Fed released minutes from its September meeting on the same day, showing officials remained divided over the case for further rate hikes, though most agreed that another hike this year could still be appropriate if inflation remains above the 2% target. The Dow Jones closed down 341.41 points, or 0.66%, at 51,179.87; the S&P 500 fell 17.16 points, or 0.22%, to 7,801.77; the Nasdaq dropped 61.2 points, or 0.22%, to 27,538.69. The China Golden Dragon Index opened at 5,638, up 7 points. The Nikkei opened at 69,863, down 172 points. Meanwhile, A-shares resumed trading today, and Stock Connect services in Hong Kong were restored.
2. The US Federal Reserve released minutes from its Federal Open Market Committee (FOMC) meeting held on September 15–16, showing officials remained divided over further rate hikes. However, most members believed another rate hike this year may still be necessary if inflation remains above the 2% target.
3. Yields on long-term US bonds remained elevated, and the high-interest returns began attracting investors. Demand was strong during Wednesday’s auction of $39 billion in 10-year Treasury notes, with the bid-to-cover ratio rising to 2.77, the highest level in nearly 10 years.
4. Houthi militants attacked two airports in Saudi Arabia, killing three people and injuring dozens. According to The Atlantic, the White House has asked the Pentagon to prepare plans for strikes on Iran, possibly to be implemented before the midterm elections.
5. The US Energy Information Administration (EIA) reported that, for the week ending October 2, US commercial crude oil inventories decreased by 3.186 million barrels to 424.1 million barrels, far exceeding market expectations of an increase of about 1.7 million barrels, and reversing the prior week’s inventory build.
6. Several EU countries reportedly prefer to cap the emergency release of diesel and crude oil announced by the G7 last week within the quotas already agreed upon in March. France said it will release 10 million barrels of diesel from strategic reserves over the next three months.
7. US mortgage rates rose for the seventh consecutive week, reaching a nearly three-year high of 7.49%. A New York Fed survey showed consumers’ inflation expectations for the next 12 months rose to 3.9% in September from 3.6% in August, the highest since May 2023.
8. Market concerns emerged over SpaceX’s (US.SPCX) financial leverage and rising capital expenditures after reports that it planned to raise $40 billion to purchase NVIDIA (US.NVDA) AI chips. Data showed SpaceX’s five-year credit default swap (CDS) spread rose 14.5 basis points on Wednesday (7th) to an intraday high of about 195.4 basis points, the highest since active trading began in June.
9. The EU is preparing to impose import restrictions on Chinese hybrid vehicles in an effort to balance trade with China. Reports indicate Beijing has rejected the EU’s request for voluntary export limits. Chinese state media warned that if the EU proceeds with discriminatory measures, it could trigger Chinese retaliation and underminenegotiation progress already achieved.
10. Fed meeting minutes revealed that the joint US-Japan intervention to buy yen in late July was funded by the US Treasury Department and did not involve the Fed’s own funds. The New York Fed conducted the transaction as a fiscal agent for the Treasury, not on behalf of the Fed’s System Open Market Account.
11. Recent online reports claimed a staff member at a Russian plague research institute died from plague infection. The institute’s biosafety oversight committee stated no accidents had occurred during work involving pathogenic microorganisms, and there were no reported infectious disease cases among staff in the past 10 days.
【Stock Focus】
BriLink Technology (06082)
- Resumes rights issue after a three-month hiatus, pricing at nearly 10% discount, raising net proceeds of RMB 4 billion to accelerate mass production of next-generation AI chips
Interest-sensitive stocks: Sun Hung Kai Properties (00016), Zijin Mining (02899), China Eastern Airlines (00670)
- FOMC minutes show most members believe another rate hike this year may be necessary
Automotive stocks: BYD (01211), Li Auto (02015), GAC Group (02238)
- Reports say China rejected voluntary export limits; EU preparing import restrictions on Chinese hybrid vehicles
The 'Big Three Oil': PetroChina (00857), CNOOC (00883), Sinopec (00386)
- Reports say White House asked Pentagon to prepare strike plans on Iran, possibly before midterm elections
- Iranian Revolutionary Guard advisor says illegal shipping lanes in Strait of Hormuz will soon be blocked
AI large model stocks: MiniMax (00100), Zhipu AI (02513), Alibaba (09988)
- DeepSeek considering expanding its latest fundraising round to as much as RMB 100 billion, double its previous target
Chip stocks: SMIC (00981), Hua Hong Semiconductor (01347), ASMPT (00522)GPU concept: TianShu Zhixi (09903), BriLink Technology (06082)
- Broadcom is raising over $50 billion to fund custom chips for OpenAI
Travel stocks: Trip.com Group (09961), Tongcheng Travel (00780)
- China’s Ministry of Transport expects inter-regional mobility during the seven-day National Day holiday to rise 0.7% year-on-year
XTAL Holding (02228)
- Chairman Wen Shuhao purchases 1.3 million shares for HKD 9.5 million, plans further增持
RoboRock (01236)
- Spends up to RMB 52.74 million to acquire German garden equipment manufacturer SABO
【Oil & Gold Quotes】
NYMEX crude oil up 0.86%, at USD 89.04/barrel
Brent crude oil up 1.03%, at USD 101.23/barrel
Spot gold down 0.06%, at USD 4,108.34/oz
Gold futures down 0.13%, at USD 4,135.25/oz
1. US stocks retreated from highs on Wednesday (7th), with all three major indices closing lower. Rising yields on long-term US bonds continued to weigh on markets amid concerns over persistent inflation and high interest rates. The Fed released minutes from its September meeting on the same day, showing officials remained divided over the case for further rate hikes, though most agreed that another hike this year could still be appropriate if inflation remains above the 2% target. The Dow Jones closed down 341.41 points, or 0.66%, at 51,179.87; the S&P 500 fell 17.16 points, or 0.22%, to 7,801.77; the Nasdaq dropped 61.2 points, or 0.22%, to 27,538.69. The China Golden Dragon Index opened at 5,638, up 7 points. The Nikkei opened at 69,863, down 172 points. Meanwhile, A-shares resumed trading today, and Stock Connect services in Hong Kong were restored.
2. The US Federal Reserve released minutes from its Federal Open Market Committee (FOMC) meeting held on September 15–16, showing officials remained divided over further rate hikes. However, most members believed another rate hike this year may still be necessary if inflation remains above the 2% target.
3. Yields on long-term US bonds remained elevated, and the high-interest returns began attracting investors. Demand was strong during Wednesday’s auction of $39 billion in 10-year Treasury notes, with the bid-to-cover ratio rising to 2.77, the highest level in nearly 10 years.
4. Houthi militants attacked two airports in Saudi Arabia, killing three people and injuring dozens. According to The Atlantic, the White House has asked the Pentagon to prepare plans for strikes on Iran, possibly to be implemented before the midterm elections.
5. The US Energy Information Administration (EIA) reported that, for the week ending October 2, US commercial crude oil inventories decreased by 3.186 million barrels to 424.1 million barrels, far exceeding market expectations of an increase of about 1.7 million barrels, and reversing the prior week’s inventory build.
6. Several EU countries reportedly prefer to cap the emergency release of diesel and crude oil announced by the G7 last week within the quotas already agreed upon in March. France said it will release 10 million barrels of diesel from strategic reserves over the next three months.
7. US mortgage rates rose for the seventh consecutive week, reaching a nearly three-year high of 7.49%. A New York Fed survey showed consumers’ inflation expectations for the next 12 months rose to 3.9% in September from 3.6% in August, the highest since May 2023.
8. Market concerns emerged over SpaceX’s (US.SPCX) financial leverage and rising capital expenditures after reports that it planned to raise $40 billion to purchase NVIDIA (US.NVDA) AI chips. Data showed SpaceX’s five-year credit default swap (CDS) spread rose 14.5 basis points on Wednesday (7th) to an intraday high of about 195.4 basis points, the highest since active trading began in June.
9. The EU is preparing to impose import restrictions on Chinese hybrid vehicles in an effort to balance trade with China. Reports indicate Beijing has rejected the EU’s request for voluntary export limits. Chinese state media warned that if the EU proceeds with discriminatory measures, it could trigger Chinese retaliation and underminenegotiation progress already achieved.
10. Fed meeting minutes revealed that the joint US-Japan intervention to buy yen in late July was funded by the US Treasury Department and did not involve the Fed’s own funds. The New York Fed conducted the transaction as a fiscal agent for the Treasury, not on behalf of the Fed’s System Open Market Account.
11. Recent online reports claimed a staff member at a Russian plague research institute died from plague infection. The institute’s biosafety oversight committee stated no accidents had occurred during work involving pathogenic microorganisms, and there were no reported infectious disease cases among staff in the past 10 days.
【Stock Focus】
BriLink Technology (06082)
- Resumes rights issue after a three-month hiatus, pricing at nearly 10% discount, raising net proceeds of RMB 4 billion to accelerate mass production of next-generation AI chips
Interest-sensitive stocks: Sun Hung Kai Properties (00016), Zijin Mining (02899), China Eastern Airlines (00670)
- FOMC minutes show most members believe another rate hike this year may be necessary
Automotive stocks: BYD (01211), Li Auto (02015), GAC Group (02238)
- Reports say China rejected voluntary export limits; EU preparing import restrictions on Chinese hybrid vehicles
The 'Big Three Oil': PetroChina (00857), CNOOC (00883), Sinopec (00386)
- Reports say White House asked Pentagon to prepare strike plans on Iran, possibly before midterm elections
- Iranian Revolutionary Guard advisor says illegal shipping lanes in Strait of Hormuz will soon be blocked
AI large model stocks: MiniMax (00100), Zhipu AI (02513), Alibaba (09988)
- DeepSeek considering expanding its latest fundraising round to as much as RMB 100 billion, double its previous target
Chip stocks: SMIC (00981), Hua Hong Semiconductor (01347), ASMPT (00522)GPU concept: TianShu Zhixi (09903), BriLink Technology (06082)
- Broadcom is raising over $50 billion to fund custom chips for OpenAI
Travel stocks: Trip.com Group (09961), Tongcheng Travel (00780)
- China’s Ministry of Transport expects inter-regional mobility during the seven-day National Day holiday to rise 0.7% year-on-year
XTAL Holding (02228)
- Chairman Wen Shuhao purchases 1.3 million shares for HKD 9.5 million, plans further增持
RoboRock (01236)
- Spends up to RMB 52.74 million to acquire German garden equipment manufacturer SABO
【Oil & Gold Quotes】
NYMEX crude oil up 0.86%, at USD 89.04/barrel
Brent crude oil up 1.03%, at USD 101.23/barrel
Spot gold down 0.06%, at USD 4,108.34/oz
Gold futures down 0.13%, at USD 4,135.25/oz
