Treasury secretary boosts markets 26/11/2024

HOT stories for today

Stocks on the move:

• Zoom Communications (ZM): Shares dropped 1% despite surpassing Wall Street’s quarterly expectations. The company provided fiscal Q4 adjusted earnings guidance in line with projections and announced a rebranding from Zoom Video Communications to Zoom Communications.
• Kohl’s (KSS): The stock fell 6% following the announcement that CEO Tom Kingsbury will step down in January. Ashley Buchanan, CEO of The Michaels Companies, will take over the role.
• Agilent Technologies (A): Shares declined 1.3% after the laboratory equipment company released adjusted earnings forecasts for the full year and current quarter that missed Wall Street’s expectations, according to LSEG.

Watchlist: ZM, KSS, A, DELL, NFLX, SMTC, BBY, DKS, ANF

Today’s action

• Asia-Pacific markets showed mixed performance on Tuesday, contrasting with Wall Street's rally that pushed U.S. benchmarks to record highs following President-elect Donald Trump's Treasury secretary pick. Hong Kong's Hang Seng Index rose 0.49%, China's CSI 300 added 0.34%, but Japan's Nikkei 225 dropped 1.49%.
• European markets closed slightly higher on Monday, buoyed by optimism from the U.S. In early Tuesday trading, U.S. stock futures remained subdued, with Dow futures up 4 points (0.01%), S&P 500 futures flat, and Nasdaq 100 futures gaining 0.05%. Ahead of Thursday's Thanksgiving market closure, a busy economic calendar looms. Key data releases today include Consumer Confidence, the Richmond Manufacturing Index, and the FOMC meeting minutes, all expected during market hours.

Bitcoin

• Bitcoin has been trading near the $100,000 mark for several days, a milestone many crypto enthusiasts view as significant. However, it has struggled to surpass this level. On Monday, Bitcoin was last recorded at $94,998, after reaching a high of $99,768 last week, according to Dow Jones Market Data.
• Peter Eberle, CIO at Castle Funds, attributes this hesitation to psychological resistance at "big round numbers." He noted that while it might take multiple attempts to break $100,000, a breakthrough could trigger rapid gains, potentially adding $10,000 in a single day. If Bitcoin continues to face resistance, analysts from QCP Capital predict a rotation toward smaller-cap cryptocurrencies like Ether. However, a breakout above $100,000 could see Bitcoin rally further while altcoins temporarily take a backseat.
  Watchlist: Bitcoin: 90 000-99 590, Ethereum: 3000-3500, Solana: 220-265

Forex

• The Japanese Yen (JPY) strengthened against the US Dollar during Tuesday’s Asian session but struggled to maintain strong momentum due to doubts about the Bank of Japan's (BoJ) capacity for further rate hikes. Political uncertainties in Japan are seen as a potential barrier to the BoJ's tightening plans, while positive sentiment in equity markets continues to weigh on the yen's safe-haven appeal.
• Meanwhile, EUR/USD trimmed earlier losses, trading near 1.0490 in Asian trading hours. However, the pair faces downside risks amid weakened market sentiment following President-elect Donald Trump's announcement of a 25% tariff on imports from Mexico and Canada and a 10% tariff increase on all Chinese goods entering the U.S.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• BP Chief Executive Murray Auchincloss said at the Energy Intelligence Forum in London on Monday that global oil demand continues to exceed expectations. He noted that oil consumption has been growing by approximately 1% annually, and BP forecasts strong demand to persist over the next 5 to 10 years. Although oil prices pulled back yesterday, this bullish outlook could provide support, potentially leading to gains and maintaining a positive trend in today's trading session.
• Gold prices plunged 3% as a risk-on sentiment took hold following President-elect Donald Trump's nomination of Scott Bessent as Treasury secretary and reports of a possible ceasefire agreement between Israel and Hezbollah. According to FactSet data, spot gold fell 3.44%, settling at $2,616.80 per ounce.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!