Global Markets Kickstart: Transport Embraces the Dawn
Transport Embraces the Dawn
Chart of the Week: Bitcoin Hits Record Highs, Miners Turn Net Long
Post election, Bitcoin surged to around $90,000 per unit, a new all time high The rally was fueled by favorable sentiment from Trump towards crypto assets, along with Bitcoin’s limited supply, high transparency, anonymity, and increasing global adoption Additionally, record high hash rates, the approval of a spot Bitcoin ETF by the SEC, and increased allocations by major institutions (including
hedge funds, family offices, and sovereign wealth funds) have diversified Bitcoin’s role and solidified its standing.
Market Recap: U.S. Stocks Choppy at Highs; Sector Divergence Seen, Semiconductors Lagging
Stocks remain choppy at elevated levels, pressured by rising yields and profit taking, interrupting the
strong rally post election China faced corrections due to weak economic data, while Japan declined on
slower 3Q GDP growth, prompting speculation about potential stimulus that could benefit Japanese
equities Market focus has shifted back to economic fundamentals U.S. October CPI rose, in line with
expectations While headline inflation cooled, driven by lower energy prices, core inflation, housing, and service inflation remain sticky The market forecasts a 25 bps rate cut at the December FOMC meeting, but revised inflation forecasts for 2024 may delay future easing.
What’s Trending: Ishiba Reelected, Paving Way for
Policy Continuity; Rate Hike Prospects Increase
Shigeru Ishiba won the Prime Minister vote while the ruling LDP Komeito coalition fell short of a majority in the House of Representatives, giving smaller parties increased influence The coalition favors expansionary fiscal policies, with energy subsidies expected to remain in place, supporting economic growth The new parliament is likely to reach consensus on individual issues, enhancing inter party cooperation and reducing uncertainty Japan’s spring wage negotiations saw the highest increase in nearly 30 years, with nominal wages up 2.8% YoY in September Although real wages fell by 0.1% YoY, the decline narrowed from the previous month Overall, the uptrend in real wages could support Japan’s 2% inflation target, providing room for the Bank of Japan to normalize rates.
In Focus: Transport Stocks Rebound Post Election; Air Freight Rates Recover U.S. Rail Transport Hits Record Highs, Profit Outlook Brightens
With the Republican party securing full control, Trump’s agenda of boosting U.S. domestic
manufacturing is expected to drive demand for transport services focused on local procurement The
proposed corporate tax cut to 15% for U.S. based firms could further support rail and ground freight
companies, enhancing their operational and financial performance Valuations for these firms may see
upside, particularly for larger players Over the past three months, transport stocks have surged following the election results, and potential policy benefits could sustain this momentum.
