The themes of the day on the international markets remain on one side the impact of tariffs that Trump wants to apply and the next Fed actions, on the other the geopolitical situation more relaxed in Middle East. Wall Street closed positively, but amid increasingly thin trading ahead of the very long weekend of Thanksgiving. In Asia the China toast to the new government stimulus.
Ceasefire between Israel and Hezbollah takes effect, civilians return to southern Lebanon
In a rare victory for diplomacy, a new treaty came into force today. cease-fire between Israel and the Hezbollah group supported by Iran, after both sides agreed to a agreement brokered by the United States and FranceThe Lebanese army, which is responsible for ensuring the maintenance of the ceasefire, said in a statement Wednesday that it was preparing to deploy in the south of the country. The easing of tensions should at least be reflected in the price of oil, which has so far barely changed.
Wall Street Positive on Tech Stocks; Fed Minutes Leave Uncertainty
The actions of Wall Street, led by the S&P 500 and the Nasdaq, closed up yesterday, thanks to the rebound in stocks technological and the fact that investors have digested the promises on duties of President-elect Donald Trump on major trading partners, while the minutes of the Fed meeting of November 6th and 7th last have left analysts uncertain compared to the December rate move. The data onUS inflation coming soon could give better indications. In the meantime, trading is becoming increasingly scarce, as Thursday marks the beginning of the Thanksgiving weekend, which will last four days for many in the United States.
Le Ford and General Motors car manufacturers both fell on the tariff news because they have highly integrated supply chains in Mexico, the United States and Canada. GM shares fell nearly 9%. Investors fear that some products will become more expensive because of the tariffs, leading to a decline in revenues for companies that will likely end up moving production of some goods abroad.
Il Dow Jones rose 0,28% to 44.860,31, the S&P 500 gained 0,57% to 6.021,63 and the Nasdaq Composite gained 0,63% to 19.174,30. Gains in mega-caps such as Microsoft and Apple boosted the computer sector and the Nasdaq. Microsoft shares rose just over 2%.
It should be noted that the blue-chip Dow was weighed down by declines in Amgen, which fell about 4,8% after its experimental drug against obesity did not meet expectations. Eli Lilly It instead rose by 4,6% after US President Joe Biden proposed to aExpand Medicare and Medicaid coverage for anti-obesity drugs.
Japan Fears Tariffs, While China Cheers to Government Stimulus
The threats of new duties under a second Trump administration continue to unnerve Asian investors, with the Japan to suffer the most, and not China. Chinese investors seem relieved that the threat of further tariffs is limited to 10% and not to 60% as Trump had said in his election campaign and they also trust that Beijing should step up stimulus to cope with any trade action. The analyst consensus now reads tariff threats as a bargaining tactic and they may not materialize in January.
Almost all of them go up China stock markets: CSI 300 of the Shanghai and Shenzhen stock exchanges +0,4%, Hang Seng of Hong Kong +0,4%. The TAIEX index of Taipei is down by 1%. The crisis seems to have finally come to life financial maneuver to stimulate the Chinese economy. Beijing's State Council has authorized China Reform Holdings to issue 300 billion yuan of "economic stabilization and investment expansion bonds," according to bond sales documents. China Chengtong Holdings Group will offer 200 billion yuan of the securities, according to documents filed with Chinamoney.cn. The proceeds of the raising are to be invested in projects focused on technology or emerging strategic industries, as well as supporting a government-led program to encourage firms to upgrade machinery. The use of the two state-owned companies for such investments could mark a new approach to stimulus measures, as the central government takes on more responsibility, easing the burden on indebted local authorities. It is the first time that central government-owned companies are issuing special bonds for such investments, indicating that they are “replacing local government financing vehicles as the key force for stabilizing growth,” analysts at Huaxi Securities Co. wrote.
Singapore's Straits Times Index is down slightly. China and Singapore strengthen diplomatic and economic ties. Cooperation between the two parties is “particularly valuable” for the benefit of their respective peoples, former Singaporean Prime Minister Lee Hsien Loong said during a meeting with Chinese President Xi Jinping in Beijing. Xi reiterated the importance of strengthening bilateral ties, calling for deeper cooperation to contribute to peace and prosperity in Asia. Lee’s six-day official visit to China marks the 30th anniversary of the Suzhou Industrial Park, a flagship project of cooperation between the two countries.
The yen, at a three-week high of 152,3, weighed on the Tokyo stock exchange, Nikkei index -0,9%. Traders are bracing for the Bank of Japan to raise interest rates next month, as the Japanese currency is also gaining ground against the euro, sterling and Australian dollar. The last time the yen rose on a multiple basis was in August, when carry trades were abandoned.
The bag of South Korea is down 0,7%. BSE Sensex Index Mumbai, little moved. Up 0,8% the shares of New Zealand
European stocks seen slightly lower. Oat/Bund spread on the rise. Eyes on Unicredit-Banco Bpm, Saipem
European stock markets are expected to open slightly lower, with the EuroStoxx 50 future at -0,2%. Yesterday, the FTSEMIB in Milan closed down 0,9%. The Future on the Dax in Frankfurt is at -0,1%. The yield on the BTP is at 3,46% and the spread is at 125 basis points. The differential between theFrench OAT and the Bund is on the rise at 86 basis points.
UniCredit and Banco BPM remain in the spotlight, after the performances recorded in the previous sessions. Scope Ratings has expressed its opinion on the takeover bid promoted by the institute led by Andrea Orcel on the bank headed by Giuseppe Castagna. Experts consider UniCredit's move largely positive, even if it will increase the group's dependence on Italy and distance itself from its recent efforts to diversify geographically by expanding its pan-European footprint. According to the Board of Directors of Banco Bpm, UniCredit's offer is hostile, launched under "totally unusual" conditions, exposes the stakeholders of the former popular bank to areas of uncertainty, and would have heavy employment repercussions. For the deputy prime minister Antonio Tajani Politics should not deal with market issues such as the takeover bid launched yesterday by UniCredit on Banco Bpm
Banco BPM C.V. has filed today with Consob the offer document relating to the voluntary total takeover bid on Anima. This was announced by Banco BPM, with a note, adding that for each Anima share tendered to the offer a unit consideration (cum dividend) of 6,2 euros will be recognized.
Saipem, in consortium with PT Meindo Elang Indah, has been awarded an offshore EPCI contract by BP Berau Ltd. The contract value is approximately USD 1,2 billion and Saipem's share is approximately USD 1 billion. The EPCI contract is part of an integrated project known as the Tangguh UCC Project, which includes the development of the Ubadari field, gas recovery through carbon capture, utilization and storage (EGR/CCUS) and onshore compression, operated by BP Berau Ltd, and located in Papua Barat Province, Indonesia.
Recordati. The Cvc fund is in contact with Italian companies for the possible sale of Recordati, of which it is the controlling shareholder. It said this to Reuters Sergio Dompè, CEO of Dompè Farmaceutica, reiterating that he is not interested in the dossier.
stellantis announced the closure of the Vauxhall van factory in Luton, southern England, putting more than 1.000 jobs at risk.
