Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
10:55
Europe
The stock markets in Europe opened this morning with a slight positive trend: the German DAX is up by about 0.5%, the KAC is up by about 0.2, and the FTSE adds about 0.1% to its value.
The German company for the production of pharmaceuticals and chemicals, Bayer jumps this morning by about 13%. The company, which is facing thousands of lawsuits in the US, claiming that its herbicide Roundup causes health problems, received encouraging news: the US Attorney General called on the court to limit the lawsuits against it. “The US government’s support is an important step and good news for US farmers,” said Bayer CEO Bill Anderson.
Asia
In Asia, trading today was in a positive trend. The Korean Kospi jumped by about 1.9%, mainly thanks to the shares of the car companies that reacted after the US Commerce Secretary confirmed that low car tariffs of 15% will go into effect and will apply retroactively from November 1st. For example, the Hyundai Motor share jumped by about 4.52%, and the Kia share jumped by about 4.19%. At the same time, the published inflation data indicated a 2.4% increase in November, compared to the corresponding period last year.
In Japan, the Nikkei closed unchanged. In the meantime, the manufacturer of industrial robots Fanuc, jumped by 6.5%, after announcing a partnership with Nvidia to improve its products.
In Hong Kong, the Hang Seng index added 0.18% to its value – a group share Alibaba Group added 1.36% to its value, after a few days ago the company invested in smart glasses. In China, the Shanghai index behaved differently than the rest of the continent and recorded decreases of about 0.48%.
Wall Street
Wall Street opened the month of December in the red, after five consecutive days of gains this past Thanksgiving week. The Nasdaq index fell by about 0.4%, the S&P 500 lost its value by about 0.5% and the Dow Jones fell by about 0.9%. The futures contracts are slightly lower this morning.
Jonathan Krinsky, chief technical analyst at BTIG, told MarketWatch that the S&P 500 was destined for a “hangover” after the Thanksgiving rally. “While it is very possible that December will close in the green, as it did in November, the road to get there will likely be quite volatile again.”
In the sector of technology giants, Alphabetical (Google) lost a little height and fell by about 1.7%, while major names in the field of AI such as Planetir Technologies Broadcom They also finished in decline.
Mark Hackett, chief market strategist at Nationwide, told CNBC that “bulls are still enjoying a strong tailwind from technical and fundamentals as we approach the end of the year. On the technical front, December remains a strong seasonal month, fund flows remain steady, risk measures have improved, the S&P 500 has returned to trading above its 50-day moving average and market breadth has improved; however, sentiment remains historically weak.” “The bear case is based on concerns about elevated valuations and the longevity of AI growth,” Hackett said.
The commodity and currency markets
The dollar recovered slightly against the shekel on Monday and its representative rate was set at 3.26 shekels. It is 2.4% higher than its last low this year (NIS 3.19 per dollar). It seems that the recovery came in part after the governor of the Bank of Israel lowered the interest rate and narrowed the gap between the shekel interest rate (4.25%) and that of the dollar (4%). Globally, the dollar weakened slightly by 0.2%, according to the DXY index, which tests its strength against the main currencies against which it is traded.
In the oil sector, the price of a barrel jumped 1% on Monday to $59, still below the symbolic $60 line. And yet, its level last June was above 70 dollars, after the “Operation with the Laby” broke out and led to major tensions in the Persian Gulf.
The ongoing talks for a peace agreement between Russia and Ukraine may, together with other factors, lead to a drop in the price of oil beyond 60 dollars per barrel, according to the Swiss bank Julius Baer. The head of economics and research at Future Generation, Norbert Ricker, points out that “in the long term, beyond geopolitical considerations, the fact that Russia has underinvested for many years indicates that its oil and gas production is expected to weaken structurally. However, this loss will probably not have a significant effect, given that the energy markets are currently in a market of abundant supply.”
According to him, “The peace talks affect the mood in the market and therefore also the prices. Decision-making in the US continues to be unstable, due to the ambiguity surrounding the willingness to increase pressure on Russia, support Ukraine, or abandon the diplomatic route.”
Bitcoin has been suffering in recent weeks from the lack of support from investors. This morning, the currency was trading around 87 thousand dollars, about 30% lower than the record levels of the past year, near the beginning of last October – when its price was about 126 thousand dollars.
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