Bitcoin with the turbo, Treasury yields higher and a dollar US Relentless: It's the mix of markets betting on Trump. Never mind that traders are now pricing in a greater than 80% chance of a rate cut of interest to the Federal Reserve next month after the report on inflation yesterday. The prospect of a cut would usually send the dollar lower, but it still rose to a one-year high. promise of tax cuts by the President-elect could boost the economy, widen budget deficits and increase government borrowing, all of which have already pushed up long-term Treasury yields. His plans for massive import tariffs are also expected to fuel inflation and reduce the Fed's ability to ease monetary policy. Republicans have won the majority in the House, giving Donald Trump's party full control of the United States Congress and broad freedom to promote a radical program in the next legislature starting in January 2025. In this situation, the one who suffers is the tech sector, both on Wall Street and in Asia. The European stock exchanges are seen to open slightly moved. Eyes to Ps, with the sale of the Treasury share.
Bitcoin on the Turbo: At an All-Time High Above $90.000
Il Bitcoin has broken the $90.000 mark, hitting an all-time high in a rally that shows no sign of abating, on the back of expectations that Donald Trump will be a boon for cryptocurrencies as US president. The world’s largest cryptocurrency has become a hot topic in the week since the election, hitting a record high of $93.480 yesterday before paring gains. It has risen 5% since the Nov. 32 election. Smaller Ether is also up 37%, while dogecoin, a volatile alternative token promoted by Trump ally billionaire Elon Musk, is up more than 150%. Trump has embraced digital assets during his campaign, promising to make the United States the “crypto capital of the world” and build a national reserve of bitcoin.
On Wall Street, it's the tech stocks that are suffering the most
Wall Street closed mixed a session in which the markets weighed the outcome of the October inflation data, which was in line with expectations but still far from the Federal Reserve's 2% target: Dow Jones +0,1%, S&P +0,02%, Nasdaq -0,3%. tech sector is definitely under pressure, probably penalized by the introduction of new tariffs by the United States. Yesterday the SOX Philadelphia Semiconductor index Index it closed down by 2%, fourth consecutive session of decline. Their comes down on two-month lows
Later today, Federal Reserve Chairman Jerome Powell will speak in Dallas, after having had time to analyze the October report on U.S. producer prices, which will be published shortly before.
Dollar hits one-year highs against major currencies. Euro hits 1,0546
The U.S. dollar hit a one-year high against major currencies overnight and headed for a fifth straight daily gain, fueled by higher yields and Donald Trump's election victory. The greenback rose above 156 yen for the first time since July. The euro fell to its lowest since November 2023 at $1,0546 and the pound hit a three-month low against the dollar at $1,2683. Thedollar index The U.S. dollar, which measures the currency against six major peers including the euro and the yen, rose 0,2% to 106,69, its highest level since early November 2023.
The dollar is also gaining traction in Asia. The Thai baht and South Korean won are weakening. The Chinese yuan, or renminbi, is at 7,2245 per dollar, from around 7 per dollar in early October. A stronger dollar tends to put pressure on other economies, says Stephen Innes of Capital Economics in Associated Press. “For Asia, especially economies closely tied to China, the dollar’s dominance is poised to become a wrecking ball for the economy.”
Asia Heavy: The Japanese government considers support for families
Weakness in US high tech and a strong dollar weighed down most Asia Pacific stocks. The MSCI Asia Pacific index fell 0,4%. Some major Asian chipmakers, such as TSMC and SK Hynix, fell. Hong Kong's stock market is open despite a typhoon that is paralyzing the city. Index Hang Seng -1,3%, fifth consecutive session of decline. Hang Seng Tech -2,2%. Among Chinese tech, Xpeng -6%, JD.com -3,5% and Meituan -3%. Tencent is up almost 1% after the publication of the quarterly data. Sinks on the market Shanghai, which shows a -1,73% and closes the session at 3.379,84 points on the eve of the publication of data on retail sales and industrial production in China. Stocks of the real estate companies Chinese after the government announced measures that include tax cuts for home buyers and builders. The stock market of India is down 0,2%. KOSPI of Alone on equality.
Nikkei's Tokyo around parity as the yen fell to its lowest since July at 156,4 to the dollar. The Japanese government is making arrangements to compile a supplementary budget of about 13,5 trillion yen ($87 billion) to finance a stimulus package stimulus measures to help you families low-income and offset the price increases, media reported. The daily newspaper reported last night Sankei, The plan calls for the government to provide 30.000 yen ($193) to low-income families exempted from residence taxes and 20.000 yen per child for families with families.
European Stock Exchanges: The Ministry of Economy and Finance sells 15% of Montepaschi
In Europe, markets will wake up with the publication of the second estimate of growth in Eurozone gross domestic product and flash data on employment Q3. Preliminary data for October showed that the bloc expanded faster than market observers had expected in the third quarter compared with the previous three months, though it remained fragile as industry remained in recession and household consumption barely grew.
Le European stock exchanges should be little moves at the start of the session, as suggested by the Future EuroStoxx 50 +0,1%. Yesterday the FTSEMIB of Milan closed up by 0,3%.
Ps, the Treasury sells 15%. The buyers are: Banco Bpm, which takes 5%, Anima which buys 3% and rises to 4%. Francesco Gaetano Caltagirone, with 3,5% and the same share for Delfin, the Del Vecchio holding. The price incorporates a 5% premium. Banco Bpm has said that it will not rise above 10%
Saipem has been awarded a new EPCI contract by TotalEnergies EP Suriname, a subsidiary of TotalEnergies, for the subsea development of the GranMorgu project, located in the Block 58 oil and gas field, 150 km off the coast of Suriname (South America). The contract is worth USD 1,9 billion.
Unicredit, BPER and Stellantis issue bonds, high foreign demand
TIM closed the first nine months of the year with growing revenues and margins, a reduction in debt in line with the plan and confirmed the guidance for 2024.
Mondadori closed the third quarter with a slightly lower net profit, weighed down by higher depreciation, but the positive operating performance in all business areas allows the publishing group to confirm its outlook for 2024.
