DOW JONES–After the profit-taking the day before, the chances of a recovery on Wall Street are good on Friday. The stock futures market suggests a friendly opening of trading on the cash market. Concerns about inflation and signs of weakness in the US labor market are fading into the background, it is said in the trade. Broadcom ensures a good mood: the semiconductor company shines with quarterly figures above market expectations and, above all, is fueling the mood with a strong sales forecast. Market players summarize that the demand for artificial intelligence remains high. Before the market, Broadcom’s share price shot up by 17.5 percent – thanks to Broadcom, the Nasdaq could therefore rise more significantly than on the broader market. Other sector stocks such as Marvell (+6.4), Nvidia (+1.5%) and Advanced Micro Devices (+1.4%) are also increasing.
Although the data “poured some cold water on the economic outlook,” it did not change the market’s view that the Federal Reserve will cut interest rates by 25 basis points when it meets next week, Hargreaves Lansdown analyst Derren Nathan explains the assessment on price- and labor market data from the previous day. The view is supported by import prices for November below the market forecast. The interest rate futures market is pricing in an interest rate reduction of 25 basis points for December 18th with a probability of almost 97 percent – the financial market is therefore certain that this will come.
Yields on the bond market continue to rise, albeit with less momentum than the day before. Although one applies Interest rate cut on Wednesday as a foregone conclusion. However, stakeholders are likely to expect a more cautious interest rate reduction cycle afterwards. Pension strategists admit that the announced protectionism of US President-elect Donald Trump suggests rising inflation rates and, as a result, higher interest rates than previously estimated. “With Trump’s victory, the resilience of the US economy in 2025 combined with the potential for higher inflation from tariffs will likely lead the Fed to take a more cautious approach to rate cuts,” BMI analysts speculate.
Euro strong – dollar weakening
Despite these prospects, the dollar is tending to weaken, with the dollar index losing 0.2 percent. However, the strength of the euro seems to be the driving force here. According to a district report, the ECB initially does not want to make any major interest rate increases in the current cycle, as the Swiss central bank recently did by 50 basis points. The report is from the evening before, but it is still being passed around on the market, they say. The euro rose by 0.4 percent and clearly jumped above the $1.05 mark.
The muted expectations of interest rate cuts from the Fed and ECB are weighing on the gold price. Oil prices, on the other hand, are rising slightly. US Secretary of the Treasury Janet Yellen has once again brought tougher Russia sanctions into play. Trump is also looking for ways to prevent Iran from building a nuclear weapon. As people close to him report, this also includes preventative air strikes. Both steps against the oil countries Russia and Iran could reduce supply.
Boeing wants to accelerate the ramp-up of the Dreamliner
Among the individual stocks, Boeing rose by 0.6 percent. The aircraft manufacturer wants to invest $1 billion in its plant in South Carolina. This is intended to accelerate the production of the 787 Dreamliner aircraft model at the site.
Chip manufacturer Intel (+0.4%) plans to invest heavily in chip design even after the withdrawal of CEO Pat Gelsinger and look for new customers for chip contract manufacturing. At an investor conference, the new co-chief executives David Zinsner and Michelle Johnston Holthaus promised to put the ailing company back on a balanced footing.
RH skyrocketed by 13.3 percent. The home furnisher is back in the black. EVgo up 12.4 percent, the electric vehicle charging company received a $1.25 billion credit facility from the U.S. Department of Energy.
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US bonds
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.20 +1.3 4.19 -21.5
5 years 4.20 +2.7 4.18 20.4
7 years 4.28 +2.4 4.25 30.7
10 years 4.35 +1.8 4.33 46.8
30 years 4.57 +2.1 4.55 59.7
FOREX last +/- % Fri, 8:08 Thu, 17:01 % YTD
EUR/USD 1.0518 +0.5% 1.0456 1.0474 -4.8%
EUR/JPY 161.26 +0.9% 159.79 159.51 +3.6%
EUR/CHF 0.9379 +0.4% 0.9342 0.9309 +1.1%
EUR/GBP 0.8303 +0.5% 0.8276 0.8253 -4.3%
USD/JPY 153.31 +0.5% 152.82 152.28 +8.8%
GBP/USD 1.2667 -0.1% 1.2634 1.2691 -0.4%
USD/CNH (Offshore) 7.2774 +0.0% 7.2884 7.2754 +2.2%
Bitcoin
BTC/USD 100,242.25 -0.3% 99,660.50 102,040.75 +130.2%
CRUDE OIL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 70.42 70.02 +0.6% +0.40 +0.7%
Brent/ICE 73.80 73.41 +0.5% +0.39 -0.2%
GAS VT Settlem. +/- EUR
Dutch TTF 42.58 42.55 +0.1% +0.03 +11.0%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 2,662.01 2,680.91 -0.7% -18.91 +29.1%
Silver (spot) 30.50 30.98 -1.5% -0.48 +28.3%
Platinum (spot) 931.25 934.75 -0.4% -3.50 -6.1%
Copper future 4.18 4.20 -0.5% -0.02 +5.7%
YTD based on the previous day’s closing level
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(END) Dow Jones Newswires
December 13, 2024 09:00 ET (14:00 GMT)