Le Asian stocks are largely declining, while the dollar hit 14-month highs on the back of an unequivocally positive report on US labor market on Friday which pushed up the bond yields and tested the high stock prices, just as the earnings season. Now the focus is on the data on consumer prices in the United States on Wednesday, where any increase in the core reading above expectations of 0,2% would further reduce expectations of monetary easing by the Fed. At least five Fed officials are slated to speak this week and comment on the jobs surprise; the influential president of the Federal Reserve Bank of New York, John Williams, will also speak on Wednesday.
The surge in the oil prices at four-month highs, coinciding with signs of lower crude shipments from Russia, as Washington steps up sanctions against the country. Data this morning also showed that China's export growth picked up in December and imports are recovering, as the world's second-largest economy braces for rising trade risks under the incoming US administration.
US Treasury yields hit 14-month high
The dramatic shift in rates has sent 10-year Treasury yields soaring to a 14-month high of 4,79%, while in Asia they are trading at 4,764%. Borrowing costs for companies and consumers are also rising, and that's before President-elect Donald Trump's proposed tariffs that will drive up import prices. That could test optimism about corporate earnings, as the balance sheet season wednesday, with major banks including Citigroup, Goldman Sachs and JPMorgan. All major US stock indexes closed down more than 1,5% on Friday. Of note: Apple decided not to align with Trump and Meta, board aims to maintain inclusion policies. Apple's board has spoken out against a proposal to end its Diversity, Equity & Inclusion (DEI) programs, following the example of other major companies.
Asian stocks fall, Tokyo closed for holiday
A holiday in Japan made morning trading thin on Monday, with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0,4%, while the Nikkei remained closed. South Korean stocks fell 1,0% as the political situation is still evolving as a hearing at the Constitutional Court begins on Tuesday to decide whether impeached President Yoon Suk Yeol will be removed from office or reinstated. Chinese Blue Chips are down 0,2%, as data showed exports rose a surprisingly fast 10,7% and imports rose 1%. The CSI 300 index in Shanghai Shenzhen fell 0,5%. Hong Kong's Hang Seng fell 1,2%. Taipei's TAIEX fell 2%.
China “is on track” to hit its 2024 GDP growth target of ‘around 5%’, thanks to the “series of incremental policies introduced since September that have significantly strengthened the recovery”. Despite the various risks that have matured in recent years, “the Chinese economy has shown strong resilience, contributing around 30% to global growth”, the Governor of the Central Bank of China (Pboc) Pan Gongsheng, speaking at the Asian Financial Forum in Hong Kong. Beijing will release its much-anticipated fourth-quarter and full-year 2024 GDP data on Friday.
Dollar strengthens across the board
The inexorable rise in Treasury yields has dollar strengthened across the board and saw the'EUR down for eight straight weeks, settling at $1,0210, the lowest since November 2022. The dollar index rose 0,2% to 108,94. The GBP fell 0,5% to another 14-month low at $1,2129, as sentiment soured by the recent collapse in the government bond market amid fears that the Labour government will have to borrow more to finance spending promises. On Saturday, British Finance Minister Rachel Reeves promised she would take action to ensure the government's fiscal rules are met. The dollar weakened slightly to $157,50 yen, following a recent six-month high of 158,88, following reports that the Bank of Japan may raise its inflation forecast this month, in a prelude to another rate hike.
Prices Of their They held steady at $2.686 an ounce, proving surprisingly resilient in the face of a stronger dollar and higher bond yields.
Oil hits 4-month highs
The prices of Petroleum continued to rise on supply concerns, while Russian exports by sea hit their lowest level since August 2023, even before the latest round of U.S. sanctions. Brent jumped $1,19 to $80,94 a barrel, while U.S. crude rose $1,27 to $77,84 a barrel. United States they imposed other on Friday fines to the Russian oil industry, the measure targets major exporters, insurance companies, more than 150 tankers. The White House is thus broadening its scope and aims to put pressure on refiners in India and China, key buyers of Russian crude after Moscow's invasion of Ukraine in 2022. The impact the restrictions will have on actual flows of crude to producers, shippers and users remains uncertain. Citigroup estimates that up to 30% of Russia's so-called shadow fleet of tankers could be affected, threatening 800.000 barrels a day, although the actual loss could be less than half that figure.
Meanwhile Donald Trump opens up to a summit with Vladimir Putin after his inauguration. “He wants to meet and we are organizing,” the president-elect said while meeting with Republican governors at Mar-a-Lago, without however providing any details on when and how. The Kremlin confirmed the Russian leader’s willingness to contact Trump, explaining that “there are no preconditions” for starting a dialogue.
European stocks seen opening lower
European stocks expected to decline, based on futures quotes. S&P 500 futures fell 0,4% and Nasdaq futures fell 0,5%, adding to Friday's pullback. EUROSTOXX 50 futures and FTSE futures fell 0,3%, while DAX futures were almost unchanged.
Stellantis. Stellantis Group Chief Operating Officer for Europe, Jean-Philippe Learned, said that the EU objective of placing exclusively zero-emission cars on the market by 2035 is not up for discussion and “it is not a problem for us: the end game is clear”, if anything he added, the pace and methods of the path towards this objective need to be reviewed, particularly in the next three years. Speaking to some journalists at the “Brussels Motor Show”, underway at the Exhibition Centre in Brussels, he said he had drawn up a plan that he will present “at the level of the Global Executive Committee” of the group “next week, in terms of updating the plans for Europe on models and engines in the next three years”. Stellantis, he stressed, will put on the market several models (the C3, the C3 Aircross, the Opel Frontera, the Fiat Grande Panda) of smaller electric cars, in the B segment in the next three months, with costs below 20.000 euros and therefore the offer will be there for the many consumers who until now have not been able to buy battery-powered vehicles because they could not afford them.
Prada. The shares of the Italian fashion company listed on Hong Kong, gained 2% in today's session after Reuters wrote on Friday that it is among the potential interested parties in the brand Versace, which parent Capri has put up for sale, and is working with Citi to evaluate any offers. Tapestry abandoned an $8,5 billion deal to buy Capri last November. The latter then hired Barclays to explore strategic options, including selling its Versace and Jimmy Choo brands, Reuters reported.
Bpm bank is preparing to update its industrial plan within the first quarter, with an increase in profitability and shareholder remuneration.
Unicredit had talks in recent days at Palazzo Chigi with the official responsible for the golden power dossiers to discuss the offer for the Bank. The government could put limits on the operation by asking for guarantees on the number of branches and employment levels.
illimityBank, the institute born from the merger between SPAXS and Banca Interprovinciale listed on the STAR segment, has announced that the board of directors has acknowledged the communication released by Banca Ifis regarding a voluntary public purchase and exchange offer (OPAS) for all illimity shares, specifying that the offer was not solicited or previously agreed upon. Consequently, the group's activities continue as planned, including the preparation of the new industrial plan, without neglecting any strategic option that could contribute to the objective of creating value for shareholders and all stakeholders of the bank.
Porsche, a German car manufacturer, delivered 310.718 vehicles in 2024, which corresponds to a decrease of 3 percent compared to the previous year. Over the past year, Porsche has completely renewed its product range, with a generational change for four of the six model lines: Panamera, Taycan, 911 and Macan. The share of electrified cars increased from 22 to 27 percent. Almost half of these were purely electric vehicles. Porsche launched its second fully electric model in 2024, the new Macan.
