US stocks rise on Thanksgiving eve… and Dow Jones adds 184 points

Yesterday, Wednesday, US stock indices continued their strong performance on the eve of the very important Thanksgiving holiday for Americans, coinciding with the decline in bond yields to their lowest levels in two months, with the Dow Jones Industrial Average adding 184 points to its value at the beginning of the day, indicating the continuation of the year-end momentum, which… You may have started early this time.

On a day that witnessed the rise of more than half of the stocks traded on the New York Stock Exchange, the rise points in the most famous index in the world represented more than half a percentage point, and the S&P 500 index rose by 0.41%, while the rise in the Nasdaq index was 0.46%.

The large number of rising stocks fueled expectations of a widening of the current stock rally, led by technology stocks, as nearly two-thirds of the stocks that make up the sector that is highly sensitive to interest rate changes rose, with bond yields declining.

On the other hand, the energy sector lost 0.1% on Wednesday, after OPEC+ postponed a ministerial meeting, during which expectations were likely to announce additional production cuts.

The yield on 10-year Treasury bonds briefly fell to 4.369% on Wednesday morning, the lowest level since September 22, before later recovering, to settle at 4.41%. The yield on 10-year bonds, which are very important in many US markets, exceeded the 5% mark in October, for the first time in 16 years.

In Europe, stocks recorded their highest level in two months, yesterday, Wednesday, led by real estate stocks sensitive to interest rates, while the British software company “Sage” jumped to a record level after announcing strong annual operating profits, in addition to announcing a plan to buy back shares.

The STOXX 600 index of European stocks ended today’s trading up 0.3%, with real estate stocks leading the gains, rising by 1.5%.

Meanwhile, the Eurozone stock market volatility index reached its lowest level since July. Eurozone bonds were little changed.

Sage shares jumped 13.3%, topping the components of the STOXX 600 index, after the company announced an 18% increase in core operating profits for the full year, and said that profits will continue to increase this year. The company also announced a share buyback program worth 350 million pounds.

ThyssenKrupp shares rose 6.6% after the German group, which operates in several fields, including submarine construction and the steel industry, announced results for the full year with “strong” free cash flow.

German fashion house Hugo Boss shares rose 3% after Deutsche Bank and Bank of America Global Research raised their ratings for the company.

In Italy, Monte dei Paschi shares rose 2% after it fell, on Tuesday, 7.9%, as Italy sold a 25% stake in the bank that managed to be rescued. At the same time, Moody’s raised its rating on the bank by one notch, and confirmed its positive outlook on it.

Relatedly, oil prices reduced their decline, ending the day down by about 1%, in a volatile session, after the OPEC+ alliance suddenly postponed a meeting on determining production policy that was scheduled to be held next Sunday, which raised questions about the future path of crude production cuts.

Brent crude futures fell 49 cents to $81.96 per barrel at settlement, after falling more than 4% to $78.41 earlier in the session. US West Texas Intermediate crude futures also fell by 67 cents, reaching $77.10 at settlement, after falling by more than 5% to $73.79 earlier in the day.

The Organization of the Petroleum Exporting Countries (OPEC) said in a statement yesterday, Wednesday, that OPEC+ postponed its ministerial meeting to November 30 instead of November 26, in a surprising development without giving reasons.

Prices rebounded after news that the dispute concerned African countries, which are among the small producers in the group, and not major oil exporters. Some traders also pointed to a decline in liquidity ahead of the Thanksgiving holiday in the United States.

The OPEC+ meeting, which includes, in addition to Saudi Arabia and Russia, allies and other OPEC members, was expected to discuss further changes to an agreement that already limits supplies until 2024, according to analysts and sources in OPEC+.