NEW YORK (Dow Jones)–At the start of trading on Monday on Wall Street, small price gains are emerging if you follow the corresponding futures. Overall, the mood is likely to continue to be supported by the prospect of falling interest rates in 2024, although market observers warn that expectations are already well ahead of the central bankers’ projections. Prices on the bond market are more or less standing still. The ten-year return is little changed at 3.91 percent, compared to almost 5 percent in mid-October. The dollar also shows little movement.
With the Dow Jones index having already reached record levels in the recent rally, the broader S&P 500 and the Nasdaq indices could also follow suit should purchases still come to the market. The S&P 500 is still around 2 percent short, the Nasdaq 100 is less than 1 percent. The path for the Nasdaq Composite, on the other hand, is significantly longer at just over 9 percent.
Market expert Stephen Innes from SPI Asset Management believes that risk appetite, fueled by the US Federal Reserve, is likely to take a break for the time being.
Fundstrat counters that equities are currently being supported by purchases from fund managers who were concerned about the macroeconomic environment and were therefore overly defensive until recently. “If we think about the last two weeks of 2023, that tells us that there will be some degree of performance chasing until the end of the year,” said the financial market experts.
When it comes to individual stocks, United States Steel jumps by 28 percent to $50.50 premarket. The Japanese competitor Nippon Steel is buying the US steel company for $14.1 billion or $55 per share in cash. The purchase price includes a surcharge of 40 percent to the closing price on Friday.
A cash injection of $2.2 billion from investor CYVN Holdings from Abu Dhabi helped Nio gain 9.1 percent.
Adobe is up 2 percent. The company has canceled its planned $20 billion acquisition of Figma.
The focus is also on Illumina. The price rose by 5.8 percent before the trading session. The genetic engineering company is separating from its cancer blood test manufacturer Grail after losing an antitrust dispute.
IBM is not very moved by the fact that Software AG is selling two key business areas to the IT giant for a total of 2.13 billion euros after its takeover by the financial investor Silver Lake.
Apple fell 0.6 percent on Nasdaq.com, weighed down by a Bloomberg report that more Chinese government agencies and state-backed companies have ordered employees not to bring Apple iPhones and other foreign devices to work.
Political tensions in the Middle East and especially the recent attacks on ships in the Red Sea are driving up oil prices. In addition, according to a report by Reuters, Russia announced that it would further reduce its oil exports in December.
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US bonds
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.43 -0.5 4.43 0.5
5 years 3.90 -1.8 3.92 -10.2
7 years 3.94 -0.3 3.94 -3.5
10 years 3.91 +0.2 3.91 3.4
30 years 4.02 +0.9 4.01 5.0
FOREX last +/- % Mon, 8:38 Fri, 17:20 % YTD
EUR/USD 1.0917 +0.2% 1.0927 1.0911 +2.0%
EUR/JPY 155.94 +0.7% 155.51 154.69 +11.1%
EUR/CHF 0.9479 -0.0% 0.9496 0.9467 -4.2%
EUR/GBP 0.8625 +0.3% 0.8605 0.8599 -2.5%
USD/JPY 142.84 +0.5% 142.34 141.78 +8.9%
GBP/USD 1.2657 -0.2% 1.2699 1.2687 +4.7%
USD/CNH (Offshore) 7.1372 +0.1% 7.1354 7.1284 +3.0%
Bitcoin
BTC/USD 40,973.18 -1.7% 41,227.52 42,514.54 +146.8%
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 72.78 71.43 +1.9% +1.35 -5.2%
Brent/ICE 77.90 76.55 +1.8% +1.35 -4.1%
GAS VT Settlem. +/- EUR
Dutch TTF 34.705 33.80 +2.7% +0.91 -59.9%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 2,023.97 2,019.83 +0.2% +4.14 +11.0%
Silver (spot) 23.90 23.88 +0.1% +0.02 -0.3%
Platinum (spot) 953.85 943.64 +1.1% +10.21 -10.7%
Copper future 3.87 3.88 -0.4% -0.01 +1.5%
YTD based on the previous day’s closing level
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DJG/DJN/cln/mgo
(END) Dow Jones Newswires
December 18, 2023 08:26 ET (13:26 GMT)