Wall Street on the rise, asian bags in tow, bitcoin which crosses the threshold of 100.000 dollars for the first time: every market has some reason to celebrate, from the waiting for the rates by the Fed, at the prospect of looser rules for the crypto world .. Attention is on the reaction of Europe, and France in particular, to the vote of no confidence yesterday evening, which hit the government for the first time since 1962, while now we await the name of the replacement for Prime Minister Barnier, even if the markets, which had already taken it for granted, closed yesterday on the rise anyway.
Bitcoin broke the psychological $100.000 mark in Asia morning trading and hit $103.400, as investors bet on a favorable regulatory shift in the United States. The entire crypto sector It has been dragged upwards, even causing instruments that were previously almost ignored to soar.
The index S&P 500, Nasdaq and Dow all hit record highs yesterday, boosted by stock market headlines technological companies and in particular those of the cloud on the rise and from comments by the chairman of the Federal Reserve Jerome Powell.
The economy is stronger than it appeared in September, when the central bank began cutting interest rates, Powell said at a New York Times event. Earlier this week, Fed Governor Christopher Waller had said he was leaning toward a cut later in December. In a summary of polls and interviews from across the country, known as “Beige Book”, The Fed said U.S. economic activity has increased slightly in most regions since early October. Over the past week and a half, markets have virtually priced in further rate cut in the United States for 2025 and the implied probability of a cut at December (at the FOMC meeting on December 17-18) rose from zero to about 75%. It would be the third consecutive cut. The closely watched US ISM survey showed that service sector activity slowed in November after posting big gains in recent months. The monthly data on payroll on the agenda tomorrow. While today is the agenda for unemployment claims. Yesterday, the data on private sector payrolls in the United States showed a modest increase in November.
Leading the tech rally yesterday was the stock of Salesforce which jumped 11% and hit an all-time high after the enterprise cloud company beat analysts' estimates for third-quarter revenue and raised the low end of its full-year revenue forecast, trailing other cloud companies as they advanced. The technology index The S&P 500 hit a record closing high, along with communications services. Elsewhere in the technology sector, Marvell Technology rallied 23,2% and also hit an all-time high after the chipmaker forecast fourth-quarter revenue that beat analysts' estimates. The index semiconductors rose 1,7%, while Nvidia rose 3,5%.
The Dow Jones rose 0,69% to 45.014,44, the S&P 500 gained 0,60% to 6.086,47 and the Nasdaq Composite gained 1,30% to 19.735,12. Benchmark 10-year Treasury yields fell three basis points to 4,182%.
Asia is invigorated. Détente returns to South Korea
Asian stock markets are rather buoyant, with the Tokyo stock market continuing the upward trend that began on Monday. Nikkei Japanese stocks hit a three-week high and are set to close up 0,4%, continuing a positive streak that began last Monday. Along the same lines, Shenzhen rose 0,23%, and Shanghai gained 0,12%. Meanwhile, the Hang Seng Hong Kong fell by about 1,1%.
The yen has recovered some recent gains and expectations of a December rate hike have faded after press reports highlighted the likely caution of policymakers.
Financial markets in South Korea remained largely flat after President Yoon Suk Yeol's failed attempt to impose martial law late Tuesday triggered volatility and a political crisis. South Korea released its revised third-quarter GDP this morning, which showed the economy grew 0,1% quarter-on-quarter and 1,5% year-on-year. Stocks Alone at -0,70%. Korea Zinc shares hit record high despite political turmoil. Moderately up Mumbai, (+ 0,36%) and Sydney (+0,15)%.
In terms of raw material, lingering expectations of Chinese stimulus supported iron ore prices, while oil edged higher ahead of an OPEC+ meeting later in the day. The Organization of the Oil Exporting Countries is likely to Petroleum and its OPEC+ allies extend the latest round of oil production cuts. Brent crude futures rose two cents to $72,33 a barrel. Gold prices settled at $2.649 an ounce.
European stocks cautious, waiting for reaction to fall of Barnier government
European stock markets are expected to open slightly lower, EuroStoxx 50 index futures -0,1%. Dax futures -0,1%, yesterday a new all-time high. The FTSEMIB in Milan closed yesterday up 0,75%. The Cac40 in Paris is expected to open at parity in the aftermath of the government's fall. The spread between OAT and BTP has shrunk to 33 basis points, a level this low not seen since 2008.
Attention in Europe is mainly on the markets' reaction to the fact that the French parliament voted last night for overthrow Michel Barnier's government. The prime minister's administration is collapsing because of his proposed budget to reduce the deficit. We are now waiting for the name of the new prime minister promised in 24 hours by Macron who will address the French today at 20 pm, live on TV. Among the names that have been circulating in the last few hours for the next prime minister are the Minister of Defense Sébastien Lecornu, who seems to have an open dialogue with Le Pen, the centrist François Bayrou, who in addition to his close relationship with Macron has support among moderates on the left and right, and Bernard Cazeneuve, a former minister who left the Socialist Party.
Germany. German industrial orders fell less than expected in October 2024. According to the national statistics office Destatis, orders fell by 1,5% on a monthly basis, following the previous month's +4,2% (revised from -5,8%). Analysts had expected a decline of -2%. Compared to the same month of the previous year, orders increased by 5,7%. Data on European retail sales and German factory orders are due later in the day.
The euro remained near the minis on the dollar, stuck around 1,0525 by political turmoil in France, while futures on French government bonds remained stable in Asian trade.
stellantis. The chairman met with the Maserati team led by the new CEO Santo Ficili seen as a sign of a new course with the aim of being closer to the employees. The European chief Imparato will meet the unions on December 12. It expects that the expected improvement in performance will allow it to pay a dividend in 2025, said CFO Doug Ostermann. For the Financial Times The automaker has reached an agreement with Carlos Tavares on a severance package that is less than the €36,5 million pay package the former CEO received last year. According to some sources Reuters, Tavares' sudden resignation announced last Sunday can be traced back to the former CEO's aggressive sales and cost-cutting targets that some board members deemed unrealistic or harmful.
Generali. Amundi, Europe's largest asset manager, is interested in acquiring Allianz Global Investor (Agi), the asset management company of the German insurance company Allianz. The union of the two groups would create a hub with over 2.500 billion euros of assets under management, thanks to the sum of the over 2.000 billion euros of assets of Amundi and the 555 billion of Agi. Discussions between the French group, controlled by Credit Agricole, and the Germans have been ongoing for several months between periods of pause and recovery, the agency reports Bloomberg, according to which the possible structure of the operation includes both a complete acquisition by Amundi and the entry of a significant stake by Allianz into the post-merger group. According to sources familiar with the matter, the American agency is likely to see an agreement announced before the end-of-year results, in February,
although, given the complexity of the operation, there is no certainty that an agreement will be reached. The talks between Amundi, which manages more than 2 trillion euros in assets, and Allianz Global Investors, whose assets amount to 555 billion euros, come in the midst of a wave of operations in the Old Continent: Bnp Paribas has announced the acquisition of Axa Asset Management, Generali is evaluating a partnership with Natixis while Banco Bpm has announced a takeover bid for Anima, a plan that Unicredit has jumped on with an exchange offer towards the bank led by Giuseppe Castagna.
Unicredit has until March to evaluate the opportunity to improve the conditions of the takeover bid for Banco BPM, CEO Andrea Orcel said during a video call with investors organized by BofA, according to a participant in the meeting. Foreign Minister Antonio Tajani told “Porta a Porta” that he believes that the conditions are not there to apply the “golden power” to a possible UniCredit-Banco operation, adding that the Council of Ministers would decide in any case.
Intesa Sanpaolo The corporate & investment banking division is focusing heavily on Spain, where it sees great opportunities, it says Sun 24 Hours the head of Intesa Sanpaolo Imi Cib Mauro Micillo, underlining that the country's growth is disconnected from the manufacturing dynamics of Germany, France and Italy.
EnelAlberto De Paoli, currently director of the group's activities in the United States, Brazil, Chile and other American countries, will soon leave the group, according to two sources familiar with the matter.
nexi . We are moving towards the reconfirmation of the syndicate agreement, expiring in December, with the current weights on the board of directors between CDP and the private equity funds, writes the Sun 24 Hours.
