Record Highs in US Equities
The final trading day of November saw US equities continue their upward momentum, culminating in record closing highs for both the S&P 500 and the Dow Jones Industrial Average. The Dow briefly surpassed the 45,000 mark during intraday trading before settling slightly below, still securing an all-time best.
While Black Friday shopping activity garnered attention, market movement was driven more by quiet optimism and overseas developments than by domestic data or earnings. The Nasdaq Composite also posted robust gains, reflecting strong performance in the tech sector, while smaller-cap shares tracked by the Russell 2000 advanced, showcasing broad market strength.
Key Financial Indicators:
- 10-Year Treasury Yield: Declined to 4.19%.
- Dollar Index: Eased slightly.
- Eurozone Inflation: Rose to 2.3%, aligning with expectations.
- Japan Inflation: Exceeded forecasts.
As the Federal Reserve’s December meeting approaches, market participants are pricing in a higher likelihood of a 25-basis-point rate cut, reflecting cautious optimism. Additionally, upcoming releases of unemployment data, manufacturing reports, and consumer sentiment figures are expected to shape market outlook as the year concludes.
Latest Market Update
Asian Markets
Most Asian markets posted gains on Monday, led by Chinese equities following positive factory activity data. Gains were modest across the region, with:
- Hong Kong, South Korea, and Malaysia showing small increases.
- India’s Nifty 50 experiencing a slight decline.
However, US President-elect Trump’s tariff threats tempered overall performance.
US Equity Futures
US equity futures remained steady on Monday as investors awaited key economic data, including:
- US manufacturing figures.
- Construction spending data.
Additionally, speeches from Federal Reserve officials are being closely watched for economic cues.
European Markets
The Euro STOXX 50 rose 1% on Friday, supported by strong performances from Airbus, Schneider Electric, ASML, and Infineon, which offset losses in the auto and banking sectors. However, the index still closed November 3% lower, with notable declines from companies such as Volkswagen and BNP Paribas.
Currency Movements
The US dollar strengthened above 106.2 on Monday, buoyed by resilience in the US economy. In contrast, the euro traded at 1.0525 against the dollar, pressured by:
- Political uncertainty in France.
- Market expectations of future interest rate adjustments.
Oil Market Trends
Oil prices edged higher during Asian trading on Monday, supported by:
- Positive economic data from China.
- Bargain buying after last week’s losses.
However, gains were capped due to concerns over US tariff threats. Market focus is now on the OPEC+ meeting, where the group is expected to delay plans to increase production amid weak demand forecasts.
Equities on the Move
Stellantis
Stellantis CEO Carlos Tavares resigned unexpectedly after a 40% drop in the company’s share value and declining sales in North America. Tensions between Tavares and the board, coupled with criticism from dealers and shareholders, led to his departure. An interim committee will oversee operations until a new CEO is appointed.
Volkswagen
Volkswagen workers in Germany began warning strikes on Monday following failed negotiations over wages, layoffs, and potential plant closures. Labor union IG Metall has warned of an unprecedented collective bargaining battle, while Volkswagen emphasized the need for cost-cutting and constructive dialogue.
Mercedes-Benz
Mercedes-Benz announced a $75 million investment in Chinese autonomous driving startup Momenta. The initiative will introduce advanced driving software in at least four models in China between 2025 and 2027, with potential expansion to other markets.
HSBC
HSBC has initiated a search for its next chairman as Mark Tucker plans to step down by 2026. Tucker, the first chairman from outside HSBC, has overseen the bank’s strategic pivot towards Asia during his tenure.
Hertz
Hertz is making progress in reducing fleet costs and improving liquidity. Deutsche Bank analysts have raised the company’s price target to $4.45 from $3.20, maintaining a “hold” stance. However, challenges remain in achieving cost goals, regaining market share, and optimizing revenue.
European Equities Outlook
Bank of America upgraded European equities to overweight, citing:
- Improving growth momentum.
- Undervalued opportunities.
Despite a projected global slowdown, analysts expect small-cap shares and defensive sectors to outperform. Improved credit conditions and potential fiscal measures could support a recovery in European markets.
Upcoming Data and Events
This week, key economic data and events include:
- US Market Data: November jobs report, ISM PMIs, and Federal Reserve speeches.
- Global Growth Figures: GDP updates from South Africa, Brazil, and Australia.
- Trade and Inflation Data: Manufacturing, services PMI, and trade figures from China, Germany, and South Korea.
For more information, visit https://cc.com.mt. The information, views, and opinions provided in this article are offered solely for educational and informational purposes and should not be construed as investment, tax, or legal advice.
