The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) is experiencing upward movement due to significant volatility in Chinese markets. After a surprising rise in the A50 futures by over 4% during the night session, the index saw a sharp decline of 3.5% after the market opened on December 10, 2024. This volatility is attributed to a mix of external and domestic factors. Globally, major stock index futures fell sharply during the Asian session, influenced by expectations of a hawkish stance from the Federal Reserve on interest rates. Domestically, the year-end settlement phase and cautious market sentiment have contributed to the decline. Additionally, foreign investors' reluctance to go long due to the proximity to Christmas has added to the market's cautious tone.
Despite the recent pledge by China's Politburo for more proactive fiscal policies and potential monetary easing in 2025, the immediate market reaction has been mixed. While Chinese stocks ended higher on December 9, 2024, with indices like the Shanghai Composite and Shenzhen Composite showing gains, the A50's decline today has overshadowed these positive sentiments. Analysts from Macquarie and Goldman Sachs have noted that while the long-term outlook may be positive due to expected stimulus measures, short-term volatility remains a concern. The market's reaction to these mixed signals has been a driving factor in the YANG ETF's performance.
The YANG ETF is currently priced at $64.50, reflecting a 12.37% increase from its previous close.