The midday market overview, compiled by Dow Jones Newswires:
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+++++ STOCK AND BOND MARKETS (1:06 p.m.) +++++
INDEX level +- % +-% YtD
E-Mini Future S&P 500 4,604.25 -0.1% +16.2%
E-Mini Future Nasdaq-100 16,072.50 -0.2% +41.3%
Euro Stoxx 50 4,530.93 +0.2% +19.4%
Stoxx-50 4,062.72 -0.0% +11.3%
DAX 16,760.10 +0.0% +20.4%
FTSE 7,512.86 -0.6% +1.4%
CAC 7,542.58 +0.2% +16.5%
Nikkei-225 32,791.80 +1.5% +25.7%
EUREX status +/- points +/- points YtD
Bund future 134.85 +0.18 +2.05
+++++ COMMODITIES MARKETS +++++
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 70.87 71.23 -0.5% -0.36 -7.7%
Brent/ICE 75.41 75.84 -0.6% -0.43 +1.5%
GAS VT settlem. +/- EUR
Dutch TTF 36.545 38.84 -5.9% -2.30 -54.0%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 1,996.09 2,004.62 -0.4% -8.54 +9.4%
Silver (spot) 22.93 23.01 -0.3% -0.08 -4.3%
Platinum (spot) 924.88 921.05 +0.4% +3.83 -13.4%
Copper future 3.78 3.82 -0.9% -0.04 -0.7%
+++++ OUTLOOK FOR STOCKS USA +++++
Wall Street is likely to start trading a little easier on Monday in what is expected to be a wait-and-see business. After Friday’s jobs report supported stocks, two key dates are in focus this week: inflation data on Tuesday and the last Fed meeting of the year on Wednesday. In advance, business could be calm and cautious. When it comes to individual stocks, investors are turning their attention to Macy’s. A group of investors has made a $5.8 billion purchase offer for the department store chain. Arkhouse Management, a real estate investment firm, and Brigade Capital Management, a global asset manager, made an offer on Dec. 1 to acquire Macy’s shares, which they do not already own, for $21 per share. The share rose by 19 percent to $20.69. In tow, Nordstrom and Kohl’s are each up around 5 percent. Cigna abandoned a $140 billion merger with Humana after shareholders balked at the health insurance mega-deal and is now planning major share buybacks. Cigna increased in price by 12 percent, Humana gained 2.4 percent.
+++++ OUTLOOK FOR THE COMPANY +++++
The following companies will publish business figures later in the day:
23:00 US/Oracle Corp, 2Q results
+++++ FINANCIAL MARKETS EUROPE +++++
Hardly changed – “The DAX is likely to initially more or less defend the rally gains,” said a trader, referring to the increase of over 2,000 points in the past few weeks and the record highs that have been achieved. The focus is on the interest rate decisions of the US Federal Reserve and the European Central Bank over the course of the week. After that, traders de facto assume that the stock market activities of major investors will end, as the books will then probably be closed for the year. Meanwhile, the risks of deflation continue to increase in China. Consumer prices there fell by 0.5 percent in November compared to the previous year. The prices signal continued weakness in demand from the Chinese economy. The China-sensitive raw materials sector is down 0.7 percent, Rio Tinto in London is losing 1.9 percent. Uniper is bullish with premiums of 13.8 percent. The drivers are plans to start paying dividends again after a capital cut. With a loss of 6.2 percent, Encavis is suffering from a downgrade to “underweight” by Morgan Stanley. Morphosys gained 11.6 percent in the TecDAX. The biotech company is in focus with its investor conference on the future prospects of pelabresib. Positive study data from a phase 3 Manifest 2 study were reported here.
+++++ FOREX +++++
FOREX last +/- % Mon, 8:14 Fri, 17:14 % YTD
EUR/USD 1.0768 +0.1% 1.0767 1.0759 +0.6%
EUR/JPY 157.43 +0.8% 156.56 155.52 +12.2%
EUR/CHF 0.9475 +0.0% 0.9469 0.9467 -4.3%
EUR/GBP 0.8555 -0.3% 0.8583 0.8583 -3.3%
USD/JPY 146.21 +0.8% 145.38 144.52 +11.5%
GBP/USD 1.2587 +0.3% 1.2545 1.2536 +4.1%
USD/CNH (Offshore) 7.1897 +0.1% 7.1911 7.1836 +3.8%
Bitcoin
BTC/USD 42,317.85 -3.4% 42,245.80 43,877.46 +154.9%
+++++ FINANCIAL MARKETS EAST ASIA +++++
Inconsistent – While the HSI in Hong Kong (late trading) fell more significantly by 1.2 percent, the Nikkei-225 in Tokyo rose by 1.5 percent to 32,792 points. However, it had also fallen sharply on the previous two trading days, especially because the yen had appreciated massively. There has now been some relief from this side, the dollar has recently recovered noticeably at 145.50 yen, compared to levels just above 144 at the end of trading on Friday in Tokyo. In addition, participants pointed to the slightly positive guidance from Wall Street after the Labor market data for November were overall in line with expectations. This solidified the assessment of most market participants of a soft landing for the US economy with a favorable outlook for falling interest rates in the coming year. In Seoul it rose by 0.3 percent and in Shanghai by 0.7 percent.
+++++ CREDIT +++++
The risk premiums on the European credit market will stand still on Monday. Business on the primary market is declining significantly, and on the secondary market US consumer prices and then various central banks are now coming to the fore as possible stimulus providers. The US Federal Reserve meets on Wednesday, the European Central Bank (ECB) and Bank of England (BoE) on Thursday. “Indications of interest rate cuts are unlikely to be heard from either the Fed or the ECB,” says Robert Rethfeld from Wellenreiter-Invest. The probability of maintaining the US key interest rate for the coming date is 98 percent. The market is pricing in a first key interest rate cut for the May 2024 meeting, but the March meeting is still in play. Regarding the ECB, Rethfeld says that it will also maintain its key interest rate of 4 percent in the deposit rate this week.
+++++ COMPANY NEWS SINCE 7.30 AM +++++
CTS EVENTIM
According to a media report, is among the bidders for one of the largest British ticket retailers, See Tickets. As the Financial Times reports with reference to several informants, the Anschutz Entertainment Group (AEG), which owns London’s O2 Arena, and CTS Eventim, with which AEG jointly owns London’s Hammersmith Apollo, are among those interested.
CTS EVENTIM
is expanding on the US market: The MDAX group is founding a new company in the live entertainment sector together with US event manager Walter McDonald. The Touring Co’s focus will be on tours in North America and beyond. McDonald is CEO and minority shareholder of the new company. Financial details were not disclosed.
MORPHOSYS
has reported further results from its Phase 3 clinical trial with its lead patient candidate, pelabresib. Against myelofibrosis, a rare cancer of the bone marrow, pelabresib in combination with the standard drug ruxolitinib showed improvements in all four disease characteristics – compared to treatment with ruxolitinib plus placebo.
BOEING
makes Stephanie Pope number 2 in the company’s leadership and thus the potential successor to CEO David Calhoun. Pope, who has led Boeing’s service division since 2022, is expected to be named chief operating officer on Monday, according to people familiar with the matter. The manager, who has been at Boeing for three decades, beat out other top managers who applied for the position.
GSK
is allowed to market its drug Jemperli in the European Union in combination with chemotherapy for the treatment of primary advanced or recurrent endometrial cancer in adult women. The EU Commission has now granted corresponding approval. Endometrial cancer affects the inner lining of the uterus.
MACY’S
could soon say goodbye to the stock market. According to several informants, a group of investors has made a purchase offer worth $5.8 billion for the well-known US department store chain.
MISTRAL AI
The French startup Mistral AI, which specializes in artificial intelligence (AI), says it has secured investments worth 385 million euros. The company wants to become a “European champion with a global focus in the field of artificial intelligence,” explained company boss Arthur Mensch on Sunday. Among the European AI companies, only Aleph Alpha from Heidelberg is so far better financially equipped.
NOVARTIS
(MORE TO FOLLOW) Dow Jones Newswires
December 11, 2023 07:13 ET (12:13 GMT)