Stock markets are cautiously positive this morning, still supported by the prospect of a rate cut in the United States next week, but they still need the Today's key inflation data to have more certainty. This data, if in line with expectations, will be sufficient to give the go-ahead to Santa Claus rally? Some analysts are convinced of this. bullish they seem to be in control: if the rally starts there are some sectors to watch carefully, including the small cap ones
Meanwhile the dollar, while gold and silver remain close to their maximums and the Copper. It goes down Bitcoin of 1% in the $92.000 area. In Asia, Tokyo, which yesterday had ridden a powerful rise, this morning is taking a breather, while in China theMoore Threads Technology's incredible IPO. The European stock exchanges are seen opening higher with an eye on the Germany where Chancellor Friedrich Merz's ability to control his rebellious coalition will be severely tested when parliament votes on a highly controversial pension law.
Wall Street was at par yesterday. Keep an eye on the Russell 2000 and the sectors poised for a Christmas rally.
Wall Street closed near parity yesterday as investors focused on economic data readings, including those on the job market and those on theinflation which will be decisive for the Fed to decide on a rate cut next week. The Dow Jones closed down 0,07%, S&P up 0,11% near 6.860. Nasdaq up 0,22%. Russell 2000 gained 0,8%,
On the one hand, the S&P index was supported by the stock MetaPlatforms, which grew by 3,4%, after Bloomberg said Facebook's parent company planned cuts of up to 30% of its Metaverse budget. On the contrary Amazon It was one of the S&P's biggest drags, dropping 1,4% after the e-commerce company said it was in talks with the U.S. Postal Service regarding their future relationship and was evaluating its options before the contract expires next year.
Although the S&P 500 index made limited progress this week, several levels previously broken have now been reconquered, reinforcing the impression that bulls remain in control. Analysts say that a sector that could perform well if a strong rally at the end of the year is that of small-cap companies: the index Russell 2000 is still maintaining some momentum and it could go up still in a context of more accommodative financial conditions, analysts say. In general, if the rally were to take off, in addition to the technological sector, analysts expect good performance from the sectors sanitary, public utility services e banking.
The focus yesterday was on the job marketWhile the November payrolls report, which would have been scheduled for today but postponed due to the shutdown, will be released after the Fed meeting, dealers are looking for information in secondary indicators, which are providing a contrasting vision labor market. While jobless claims fell to their lowest level in three years, a report from the Chicago Federal Reserve estimated that the unemployment rate remained around 4,4% in November.
The other key fact is that of theinflation This comes into play today, when the PCE, the Fed's most closely followed data, is released. Economists expect a third consecutive 0,2% increase in the index. This would keep the annual figure just below 3%, a sign that inflationary pressures are stable, if persistent.
In Asia, Tokyo reverses its highs. Seoul's Kospi stock gains a week. Moore Threads Technology explodes in its IPO.
Asia Pacific stocks are mixed in the last session of a week, but with overall positive performance.
In South KoreaSeoul's Kospi index gained 1%, with a weekly balance of +3,7%.
A year after the shockwaves sparked by the former president's disastrous attempt to impose martial law, new President Lee Jae Myung has restored stability and is now using his popularity to push through investor-friendly measures.
In ChinaThe CSI 300 index of Shanghai and Shenzhen stock markets rose 0,1%, up 0,5% on the week. Hong Kong's Hang Seng index was unchanged, with a weekly gain of 0,2%. Moore Threads Technology, a leading Chinese artificial intelligence chipmaker, soars on its Shanghai Stock Exchange debut after raising 8 billion yuan ($1,13 billion) in the second-largest onshore IPO of the year. The company's shares are go up to 502% after selling at 114,28 yuan each during the initial public offering. If the gains hold, the debut would mark the largest first-day gain for an IPO above $1 billion since 2019, the year reforms on stock market capitalization were introduced. The listing comes at a time of growing optimism regarding China's push toward technological self-sufficiency, fueled by trade tensions and fears of U.S. technological restrictions. Nvidia Corp. would come prevented from shipping advanced chips for artificial intelligence in China under bipartisan legislation introduced yesterday in an attempt to codify existing U.S. restrictions on exports of advanced semiconductors to the Chinese market.
In Japan, Tokyo's Nikkei index is down 1% after yesterday's strong rally, with a +0,3% for the week. Bank of Japan prepares to raise rates Interest rates are expected to rise at the end-of-month monetary policy meeting. Officials consider a quarter-point increase in the benchmark rate to 0,75% highly likely at the end of the two-day meeting on December 19. A rate hike would bring Japan's benchmark rate to its highest level since 1995. A key issue for the market is how aggressively the central bank will signal further increases.
In India, the BSE Sensex index in Mumbai is up 0,2%, down 0,2% for the week. The rupee has gained slightly, yesterday trading just above the psychological threshold of 90 to the dollar, trading at 89,8. The Reserve Bank of India cut interest rates by a quarter point, to 5,25%, as expected. Inflation in India is at its lowest ever, and in its statement, the central bank further lowered its consumer price forecast.
In Australia the data center group NextDC and OpenAIChatGPT developer NextDC has agreed to a partnership to develop a large-scale data center in Sydney. Shares of NextDC have soared.
European stocks opened higher. At Piazza Affari, eyes were on Stellantis and Leonardo.
European futures are forecasting a higher start to the last day of the week. The EuroStoxx 50 Index is up 0,3%.
Mps Bank Barclays raised its target price to €8,2 from €7,8. The Board of Directors will meet this afternoon.
Bpm bank - Second MF, Banco Bpm could acquire a stake in SGR Miria Holding.
BRUNELLO CUCINELLI The world premiere of the documentary "Brunello, the Gentle Visionary," directed by Oscar-winning Giuseppe Tornatore, was a unique event for the brand. Among those in attendance were Prime Minister Giorgia Meloni and Mario Draghi, who also appears in the film.
Eni – JP Morgan cuts its recommendation to underweight from overweight.
Leonardo Il Messaggero reports that Nigeria is ready to purchase six M346 trainers, and banks are arranging a €450 million loan guaranteed by Sace.
Mediobanca – Barclays cuts the rating to underweight from equal-weight, target price to 17,5 from 17,9 euros.
Stellantis Intesa Sanpaolo raised its rating to Buy from Neutral, with a target price of €10 to €12. DZ Bank raised its rating to Buy from Sell, with a target price of €13.
Avio – Based on the signatures of ESA member states, Avio expects to award new launcher contracts worth over €600 million in 2026-2027, with execution expected by 2028-2029.
believe – Barclays cuts rating to underweight from equal-weight
Edison EDF may sell a minority stake in Edison, its Italian electricity and gas subsidiary, through an initial public offering (IPO) or a sale to a third-party partner, Edison CEO Nicola Monti said in an interview with Reuters.
Technogym – Berenberg raises target price to 18,6 euros from 15,2 euros.
