📆 Monday, November 25
► The European stock markets are little changed, but are benefiting from optimism about the appointment of Scott Bessent as US Treasury Secretary. His call for a more prudent economic policy reassured investors and led to price gains in all major sectors. In US pre-market trading, bank shares led the gains. Banco BPM shares rose more than 2.5% (previously up as much as 9%) after UniCredit made a €10 billion ($10.6 billion) all-stock takeover offer, signaling consolidation in the European banking sector. However, UniCredit shares fell as investors were cautious about the financial implications of the takeover. Anglo American gained momentum in London after announcing the $3.78 billion sale of its steel coal business, showing progress in restructuring the mining company. Traders are now turning their attention to inflation and economic data around the world, particularly in the Eurozone later this week. German business climate and sentiment data has continued to deteriorate and fall short of expectations.
► US markets extended their upward trajectory as equity futures pointed to further gains. The S&P 500 and Nasdaq 100 added around 0.5% amid renewed confidence in economic stability under Bessent’s leadership. The 10-year Treasury yield fell by six basis points to 4.34%, reflecting easing inflation fears and investor demand for safe-haven assets. Meanwhile, the DXY dropped significantly (+ 0.55%), reversing an eight-week rally fueled by expectations of aggressive fiscal policy under the Trump administration. This week, investors will scrutinize the Federal Reserve’s meeting minutes and PCE inflation data to assess the likelihood of rate cuts in 2024.
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