Wall Street does not celebrate Boxing Day, so trading took place as normal yesterday, albeit at a slightly lower level than usual. It wasn’t really very exciting in the US yesterday, but the stock markets still managed to make a small profit. All three major indexes gained between 0.4% and 0.5%, while smaller stocks even outpaced the Russell 2000 index. boost of 1.4% gave.
And oh yeah, the S&P 500 flirted with its priors yesterday all time high score of 4,796:
Intel (+ 5.2%) stole the show thanks to a report that the chip manufacturer had secured a subsidy of around $3.2 billion from Israel for the construction of a new factory. A significant amount, although the total investment for Intel will be around $25 billion.
Made further Bristol Meyers Squibb (- 1.6%) announced its second billion-dollar acquisition of this month. The group is buying for about $4.1 billion RayzeBio (+ 100%), having previously acquired Karuna Therapeutics for $14 billion.
And there are even more all time highs is sight. Gold for example: on the one hand the precious metal benefits from a weaker US dollar and on the other hand the market is already anticipating interest rate cuts from the Fed:
What can investors expect this first trading day after Christmas? Very little can be expected from the agenda, because it is practically empty. Furthermore, trade is traditionally thin between Christmas and New Year’s Eve and that can sometimes lead to exaggerated price movements.
Prosus today seems to be able to make up for some of the losses incurred last Friday: Tencent rose by more than 4% last night on reports that the Chinese government may show some flexibility for the gaming industry.
It won’t save the furniture for investors: the Chinese CSI – converted into euros – stands ytd at a minus of 20%. Painful, especially compared to the S&P 500 performance (+ 20%) on the same comparison basis.
Of AEX seems to be heading for a slightly higher opening of +0.5%. This is in line with the other European stock exchanges.
Then the indicators:
- European futures are trading around half a percent higher
- Asia showed mostly 1% – 1.5% higher prices last night, rebound in Chinese tech funds
- The VIX is really unbearable around 13.2
- US dollar weakens further versus the euro at 1.104
- US ten-year interest rate falls below 3.9%
- Oil rises about 2.5% on rising tensions in the Middle East
- Gold is doing quite well, but the precious metal is still not really above the $2,000 limit
- Crypto is suddenly out of favor again and is now trading around $42k
News, advice, shorts and agenda
The most important news from ABM Financial News:
- 07:08 European stock markets open slightly higher
- 07:18 IMCD makes acquisition in Colombia
- 07:31 AMG subsidiary makes takeover
- 07:39 Green prices in Asia
The AFM reports this shorts:
There are no new reports, but below are the top five most shorted shares:
From agenda
1:00 PM Mortgage Applications – Weekly (US)
And then this
PC market finally seems to be recovering:
After a 2-year slump, global PC market to rebound as consumers upgrade devices, seek AI integration
— CNBC (@CNBC) December 27, 2023
American consumers continue to shop heavily:
US retail sales grew between November 1 and December 24, according to a report by Mastercard, but the increase was lower than last year and beneath analysts’ expectations pic.twitter.com/QZ8rqaPnYK
— Reuters (@Reuters) December 26, 2023
Banks are cutting quite a few jobs:
Global banks eliminated more than 60,000 jobs in 2023, marking one of the heaviest years for cuts since the financial crisis pic.twitter.com/VMLSZaDzh1
— Financial Times (@FT) December 26, 2023
Investors are enthusiastic about Intel again:
Intel’s stock on pace for biggest daily percentage gain in two months, buoyed by Israel deal
— MarketWatch (@MarketWatch) December 26, 2023
52% discount on office premises:
A Los Angeles office building located near Century City and Beverly Hills sold for about 52% less than its price five years ago
— Bloomberg Markets (@markets) December 26, 2023
But US house prices are holding up well:
October home prices post biggest gain of 2023, despite higher mortgage rates, says S&P Case-Shiller
— CNBC (@CNBC) December 26, 2023
Russian oil finds its way to China:
Half of Russia’s 2023 oil and petroleum exports went to China – Russia’s Novak pic.twitter.com/894eWDJISg
— Reuters (@Reuters) December 27, 2023
Japan is once again turning to nuclear energy:
Japan’s regulator cleared one hurdle for the nation’s top utility to restart the world’s largest nuclear power plant
— Bloomberg Markets (@markets) December 27, 2023
Good luck today and make use of ours Market monitor.
Martin Crum is a senior investment analyst. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments. Crum can take positions on the financial markets.
2023-12-27 07:22:18
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