Jin10 Data Summary: PBOC Reverse Repo, Democrats Take Control of Congress, Oil Prices Plunge

TechFlow reported on Nov 5 that, according to Jin10 Data, its Nov 5 roundup of key overnight and morning news showed the PBOC conducted a 300 billion yuan outright reverse repo operation; a blue wave emerged in US midterm elections, with Democrats regaining control of Congress; overnight spot gold and silver surged, crude oil plunged, the Dow rose 3%, and the US 2-year Treasury yield fell by more than 5bp.

On the domestic front, five departments issued the Action Plan for Implementing a Comprehensive Conservation Strategy, proposing to accelerate the deployment of a batch of recycling projects for rare and precious metal resources. The Ministry of Commerce said recent China-Canada economic and trade consultations have made positive progress, including further extending relevant exemption measures under the preliminary joint arrangements. The compilation methodology for the SSE Stock Connect Index has been revised, removing securities with average daily turnover below HK$5 million over the past year.

On the international front, after his midterm election defeat, Trump said he was willing to work with Democrats, was not afraid of impeachment, would not replace the defense secretary, and acknowledged that the war was one important reason for the loss, adding that he would decide when hostilities end. The US Treasury adjusted its language, leaving the door open to changing auction sizes. On Middle East tensions, international crude oil plunged as much as 10%, as markets increased bets on de-escalation in Iran; Lebanese media reported that Gulf states oppose launching another war against Iran, and US-Iran talks are expected to make clearer progress on Friday.

Source: TechFlow