Another one is looming positive day for the stock markets today even if, like yesterday, investors are not yet giving in to the enthusiasm for that long-awaited Christmas rally. Yesterday the personal data US employment data have solidified expectations for a Fed rate cut next week, but markets are likely to want to see the most important data oninflation tomorrow to be sure of it. Meanwhile, to support the optimism there is the bitcoin recovery and the success of uan auction in Japan. After a slight close Wall Street rose yesterday, although with some headaches for the Microsoft collapse, Asian stock markets show a sharp rise in Tokyo and futures point to a higher opening in European stock exchangesThe dollar remains weak, while gold and silver, although slightly down, are not far from their records. Oil is rising: peace negotiations in Ukraine are stalled.
Wall Street closed higher yesterday, albeit with a shiver for Microsoft
Wall Street closed higher yesterday, after a series of economic data has kept the high expectations of a rate cut of the Federal Reserve next week, while a Microsoft stock decline has slowed the increase. The Dow closed with a gain of 0,86%, S&P of 0,30%, Nasdaq of 0,17%. Expectations of rate cuts have also raised small caps, with the Russell 2000 index which gained nearly 2% yesterday, following last week's 5,5% surge, its strongest weekly performance in over a year. Analysts expect the trend of small-cap stocks to continue into 2026.
Investors weighed in on news that President Donald Trump's administration would suddenly Interviews with finalist candidates cancelled for the post of Fed chairman, fueling expectations that he will be Kevin Hassett, seen as leaning toward aggressive interest rate cuts, to replace Jerome Powell next May.
The Institute for Supply Management said yesterday that theservice activities in the United States remained almost unchanged in November, standing at 52,6 points compared to 52,4 in October, while the price component paid has decreased, although it remains high. The data precedes the delayed publication of the report on personal consumption expenditure, the indicator of inflation preferred by the Fed, scheduled for tomorrow. Furthermore, the report Private labor market adp showed an unexpected decline in November. With official employment reports for October and November expected only after the central bank's monetary policy announcement, dealers placed more importance than usual on private sector data.
A shiver ran through the halls because of ecosystem which lost as much as 3% during the session: a report said the tech giant cut sales quotas for its artificial intelligence software after many salespeople missed their targets for the fiscal year ending in June. However, the shares then rebounded after CNBC said Microsoft denied the news, which helped push the S&P 500 and Nasdaq into positive territory. Microsoft still closed down 2,5%. On the other hand, in the tech sector, Microchip Technology rose 12,2% after the chipmaker raised its expectations for third-quarter results and Marvell Technology jumped 7,9% after the chipmaker announced it will buy semiconductor startup Celestial AI in a deal valued at $3,25 billion.
Furthermore American Eagle Outfitters rose 15,1% after raising its annual sales forecast, banking on strong demand during the holiday season.
In Asia, Japan jumps thanks to an explosive Fanuc and a good outcome of the 30-year auction
In Asia it is the Japan the best performer after the sell-off in 30-year government bonds attracted the strongest demand since 2019. The Topix and Nikkei 225 are both up around 2%, versus a more tepid 0,1% gain for the broader MSCI index driven by a explosive gain of 12,4% for fanuc Corp after the industrial robot maker announced a collaboration with Nvidia earlier this week. Japanese government bonds have gained ground after the successful 30-year auction, confirming the high interest shown in the 10-year maturity at the beginning of the week. Nomura was the largest buyer of the bonds, a positive sign, as it indicates that long-term investors are there. Overall, the results offered a certain relief to the market, which had previously seen yields rise due to renewed concerns about the country's budget and bets on a potential rate increase at the Bank of Japan's monetary policy meeting on December 19.
In ChinaHong Kong's Hang Seng Index is up 0,2%, while the CSI 300 index in Shanghai and Shenzhen is up 0,3%. Taipei's Taiex is down, due to weakness in tech and semiconductor sectors. The stock market South Korea is down 0,8%. Meanwhile, in AustraliaBond yields hit their highest level this year, amid growing speculation that the central bank will raise rates again to curb inflation.
Sui currency markets, il dollar snapped a nine-day losing streak, rising 0,1% today.'EUR is at $1,165, at a seven-week high. Indian Rupee The dollar fell to a record low against the dollar, due to delays in reaching a trade deal with the United States, surpassing 90 to the dollar and increasing pressure on the Reserve Bank of India when it meets tomorrow with expectations of a rate cut. Meanwhile, China has set its daily benchmark rate for the yuan at a significantly weaker level than estimated, suggesting that the central bank does not like the appreciation that is pushing the cross towards the 7 threshold, from 7,35 in April.
The US dollar index, and precious metals declined, with silver
Among raw material, silver cooled but remained near the all-time high of $58,98 reached yesterday on expectations of a Fed cut. has recorded a slight decline. Prices of Petroleum are rising, supported by new attacks against Russian oil infrastructure and the lack of progress in diplomatic efforts to end the war in Ukraine, but also by tensions between the United States and Venezuela. Donald Trump's latest statements, particularly regarding a possible military intervention against countries involved in drug trafficking and a tougher stance towards Venezuela, have fueled the geopolitical risk premium already reflected in oil prices. Oil futures Brent WTI crude oil futures rose 0,59% to $63,04 a barrel, while WTI crude oil futures rose 0,7% to $59,37 a barrel. Ukrainian forces struck the Druzhba pipeline in the Tambov region of central Russia. The move rekindled fears of possible disruptions to Russian oil exports.
French President Emmanuel Macron and Chinese leader Xi Jinping met in Beijing today.
European stock markets saw a strong opening. Eyes on the lows of the BTP-Bund spread and on the Milan Stock Exchange on Campari, Fincantieri and luxury goods.
European stock markets are expected to open higher. The Euro Stoxx 50 index is up 0,58%.
BTPs rallyThe 10-year spread against the German Bund, at 69 basis points, has hit a new 15-year low, while against the French OAT it stands at a new all-time low of -5 basis points.
CampariSimon Hunt, the drinks maker's new CEO, wants Aperol Spritz to become a staple in Texas, as it is in Milan and Berlin.
Mps-MediobancaMilan prosecutor's office acquires Grilli and Melzi d'Eril's cell phones as part of its ongoing takeover bid investigation. The two managers are not under investigation.
LuxuryFrom Versace to Gucci, from Prada to Dolce & Gabbana, the number of luxury fashion brands implicated in various capacities in the Milan Prosecutor's Office's investigations into gangmastering practices along the Made in Italy supply chain has risen to 13.
Fincantieri It will be listed on the FtseMib on December 19th, replacing Interpump. A new industrial cooperation agreement in Bahrain with Asry.
PrysmianJPMorgan raises its target from 93 to 101 euros and strengthens its Overweight rating.
A2a – It wants to build the first data center in Lombardy in 2027, which will be launched in 2028. This was stated by CEO Renato Mazzoncini.
Eni, Acea – Eni's subsidiary Plenitude has signed an agreement with Acea to acquire all of Acea Energia.
Classic Ferrari for sale – It has signed a new revolving credit line of €350 million to meet various corporate needs.
Intesa Sanpaolo – Goldman Sachs raised its target price to 6 euros, from 5,90 previously.
Moncler – HSBC raised its target price to 60 euros, from 52 euros previously.
Stellantis – Forvia, Michelin, and Stellantis have signed an agreement to restructure and refinance their Symbio hydrogen fuel cell joint venture, according to a statement. The United States will repeal NHTSA's CAFE fuel efficiency standards.
Mfe-Mediaforeurope – Reti Televisive Italiane (RTI) and Medusa Film have filed a lawsuit against the American company Perplexity AI, accusing it of illegally using audiovisual and film content to train its artificial intelligence systems.
