01, Unexpected PPI

Last night, the U.S. Department of Labor released another inflation data report.

This comes after the CPI data was announced last Thursday, and it has been several days since the PPI data was released, which is significantly different from the recent norm.

For some time now, the CPI and PPI data have typically been announced on consecutive days. The delay in announcing the PPI data this time has led the market to worry whether there is an anomaly in this PPI data.

However, the released PPI data brought a pleasant surprise to the market rather than a shock. The market had previously expected that the PPI for October would rise by 8.3% year-on-year, but the actual announced data showed a year-on-year increase of 8.0%, which is not only lower than the market's expectations but also significantly lower than last month's 8.4%.

Nevertheless, the PPI still maintained growth on a month-over-month basis, it's just that the increase was also lower than the market's expectations.

Month-over-month growth indicates that the PPI is still increasing in actuality. The reduction in the year-on-year growth rate is merely due to the high base from the previous year.

This is very similar to the situation with CPI.

Precisely because of this, it is not easy to make a judgment that inflation has begun to decline.

02, U.S. Stocks Did Not Rise UnilaterallyInfluenced by the news of PPI, U.S. stocks opened higher last night. However, due to the prior release of CPI data as a preemptive measure, the market did not react strongly to the better-than-expected PPI figures. During the trading session, U.S. stocks experienced a decline, with the gains narrowing.

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This was partly due to the impact of the missile attack on Poland, and on the other hand, it also indicated that the market quickly diminished the positive effects brought by the PPI data. In the end, the Nasdaq Composite Index had the highest increase, reaching 1.45%, while the S&P 500 also rose by 0.9%. However, the Dow Jones Industrial Average only climbed by 56 points, with a gain of 0.17%.

Looking at the cumulative gains over the first two trading days of the week, only the Nasdaq Index was up, while the other two indices were slightly down. This also shows that the inflation data, which was better than expected, has not yet been able to continue to push U.S. stocks higher.

Chinese concept stocks significantly outperformed the broader market last night, with the China Golden Dragon Index rising by 7.8%. Tencent Music surged by more than 30%, Bilibili jumped by 26%, and iQiyi increased by 16%. Alibaba and Weibo both saw gains exceeding 11%, while NetEase, Baidu, Pinduoduo, and JD.com all experienced increases ranging from 7% to 10%.

The three major new energy vehicle companies also rose in tandem, with Li Auto up by 5%, XPeng by 4%, and NIO by 2%.Over a continuous period, we often observe that the performance of the China Golden Dragon Index has been stronger than that of the Nasdaq, indicating that international capital is continuously buying Chinese assets from the U.S. stock market.

03, Increasing Signs

The Chinese economy is increasingly being看好, while the U.S. economy is showing more signs of recession.

Recently, Apple has offered an unprecedented discount for enterprises purchasing its computer products, which seems to be another favorable signal proving that the current economy has been severely affected. Both corporate and individual demand have shrunk significantly.

To cope with the gradually approaching economic recession, Apple offers small businesses that buy computers in bulk a discount of 8% to 10%.

In the past, similar discounts were only for large enterprises purchasing in large quantities, and now the minimum purchase quantity to enjoy the discount is just 5 computers.

In addition to this, Apple has also launched a trade-in program. However, past trade-in programs have had failed cases, which resulted in the sales of the iPhone XR at the time being far below expectations.

Even Apple, which has always had significant pricing power, is now proactively offering discounts, making it even more difficult for other American companies.