- Sentiments on Wall Street session were very positive yesterday, as the Nasdaq 100 rose nearly 1.9%. In the market spotlight were shares of Broadcom, which rose more than 6% after news that the company is in the design stage and will produce AI chips for Apple; the company's current capitalization is $820 billion. The S&P 500 index rose nearly 0.9%, while the DJIA lost more than 0.2%.
- Yesterday's CPI inflation rose at an annual rate of 2.7% as expected, while core CPI rose at 3.3%; after the data, traders are pricing in a near-certain Fed rate cut in December and still three rate cuts throughout 2025, although against the backdrop of the new administration and potential tariffs, this bet still seems uncertain and could change significantly. Yields on US 10-year treasury bonds rose yesterday slightly, to 4.28%
- Published yesterday, software giant Adobe (ADBE.US) earnings came in higher than expected, however shares were down 9% during the US after market, as company expects lower than expected sales dynamic. Revenue came in at $5.67B vs $5.61B exp with adj. EPS at $4.81 vs $4.67 anticipated on Wall Street. The company expects this quarterly adj. EPS at $4.95 to $5 vs $5 exp. with revenue at $5.63 to $5.68 vs $5.72 expected on Wall Street
- The mood during the Asian session was clearly positive. China's Hang Seng gains nearly 2%;Japan's Nikkei 1.4%, and South Korea's KOSPI 1.6%. Australia's ASX loses almost 0.3%, following 'hawkish' data on employment change in Australia. The change was 35.6k, 25k was expected, after 15.9k previously; unemployment rate came in at 3.9% vs 4.2% exp and 4.1% previously
- EURUSD gains 0.18%, with the Canadian dollar gaining the most against the dollar; the AUDUSD pair is up 0.75% supported by solid data from Australia's economy
- USDCHF declines slightly as markets await SNB decision today, scheduled ad 8:30 AM GMT today. Investors expect that the bank will cut rates by 25 bps to 0.75%
- Precious metals are gaining today; silver is up almost 1%, platinum and palladium are up 1.5%. Gold is trading above $2,700 per ounce.
- Oil is trading only slightly higher, but NATGAS is rising 0.5% to $3.36/MMBtu. Volatility across the agricultural commodities is limited; wheat and soybean futures are losing in the range of 0.6%.
- According to Bank of America's CEO Moynihan, US companies see regulations as more favourable under Trump. US Treasury official informed that 'US November receipts, outlays and deficit are all record highs for that month'
- US fiscal 2025 year-to-date deficit is $624 bln vs comparable fiscal 2024 deficit $381 bln. US Federal Budget Balance came in -366.76B vs -356B exp. and -257B previously
- Markets' attention is focused on 1:30 AM. today, when U.S. jobless claims, November's US producers inflation (PPI) reading and the European Central Bank decision will be released. The market expects the bank to cut rates by 25 bps; a 50 bps cut, while not impossible, is priced in at a much lower probability.
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