- Yesterday, the S&P 500 rose 0.9%, Nasdaq 100 added 0.6%, while the Dow Jones Industrial Average climbed 1.2%. The Russell 2000 of small caps gained almost 1.8%. A gauge of the “Magnificent Seven” stocks added 0.3%. After the session on Wall Street, Donald Trump proposed 10% China tariff
- Wall Street indices futures are trading marginally lower after yesterday very solid session, except for the US100, which is gaining 0.4% thanks in part to Netflix's excellent performance. The giant's shares rose 11% after the session, as the company reported much stronger than expected quarterly results, opening the 'US BigTech' earnings season. Also, United Airlines gains almost 4% after issuing strong business outlook
- Netflix posted revenues of $10.25 billion in the fourth quarter of 2024, up 16% year-on-year. Net profit was $1.87 billion, and earnings per share (EPS) reached $4.27, beating analysts' forecasts of $4.20 EPS.
- In the quarter under review, Netflix reported a record gain of 19 million new subscribers, to 302 million, versus expectations of around 290 million. This result significantly exceeded analysts' forecasts, who expected an increase of about 9.77 million new subscribers.
- Shares in Japan, South Korea, and Taiwan rose in response to Trump's promise for an AI investment drive, which boosted a technology sector. However, Chinese stocks defied the trend when the new US president stated that he is still mulling a 10% tariff on all Chinese goods. China's mainland stocks benchmark CSI 300 Index drops 1.3%, while Hang Send Index loses 1.8%
- Volatility in the currency market is very limited. About 0.15% is lost by the dollar index, EURUSD gains less than 0.2%. The USDJPY pair records a 0.3% increase
- Gold gains nearly 0.1% and rises to nearly $1,748 per ounce; sentiment in the precious metals market is positive. Among agricultural commodities, wheat loses the most, with CBOT contracts retreating nearly 1%
- Cryptocurrencies are trading in mixed sentiment, with Bitcoin 'consolidating' in the $104.5k-$106k range. The market is still waiting to hear about Bitcoin's strategic reserve in the U.S., which, for the time being, is not being announced by the new administration
- Today's session will not be full of key macro data; the most important reading will be the Conference Board survey index of leading indicators from the US, for December, scheduled at 3 PM GMT. In addition, Christine Lagarde, president of the ECB, and Joachim Nabel of the Bundesbank will speak.
- The BoJ is expected to hike interest rates at its policy meeting this week, according to Kyodo News.
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