Market remains unstoppable 27/11/2024

HOT stories for today

Stocks on the move:

• Ambarella (AMBA): The semiconductor design company's shares surged 20% following an optimistic outlook. Adjusted earnings and revenue for the third quarter exceeded analysts' expectations.
• CrowdStrike (CRWD): Shares dropped 3% after the cybersecurity firm provided a lackluster fourth-quarter forecast. Nevertheless, third-quarter earnings and revenue surpassed Wall Street projections.
• Dell Technologies (DELL): The stock plummeted over 10% after the company reported lower-than-anticipated revenue for the fiscal third quarter, though adjusted earnings outperformed expectations.
• Autodesk (ADSK): Shares fell more than 9% as the software company's forecast disappointed investors. Additionally, Janesh Moorjani was named chief financial officer, effective December 16.
  Watchlist: CRWD, AMBA, ADSK, DELL, NTNX, WDAY, HPQ, RIVN

Today’s action

• Asia-Pacific markets were mixed as investors assessed economic data from China and Australia. China’s industrial profits dropped 10% in October, showing limited impact from recent stimulus efforts. In Australia, the Consumer Price Index rose 2.1% year-over-year in October, below the 2.3% forecast. This marked the slowest inflation rate in over three years but still above the central bank’s target. European markets are set for a mixed start on Wednesday as traders weigh the potential impacts of President-elect Donald Trump’s proposed tariff increases.
• U.S. stock futures showed minimal movement in early trading. Futures tied to the Dow Jones Industrial Average increased 30 points (0.07%), S&P 500 futures hovered near unchanged, while Nasdaq-100 futures dipped 0.11%. Investors anticipate releasing the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, at 10:00 a.m. ET. Economists expect a 2.8% annual rise in the core reading, which excludes volatile food and energy prices. The report could provide insights into the Fed’s potential monetary policy moves at its December meeting.

Bitcoin

• Bitcoin’s climb toward $100,000 paused on Tuesday as profit-taking weighed on its rally. Trading around $91,867, it fell 8% from its November 22 peak of $99,768 but remains up 119% year-to-date. Spot bitcoin ETFs saw $438 million in outflows on Monday, ending a five-day inflow streak, according to Wintermute. Analysts, including James Toledano of Unity, attribute the pullback to investors cashing in gains after a $25,000 surge over the past month.
• Glassnode data shows long-term holders sold over 366,000 coins monthly—the highest rate since April. Investors with a cost basis near $57,900 led the selling, likely locking in nearly 60% profits. Katie Stockton of Fairlead Strategies noted bitcoin is in a “digestion phase,” a healthy consolidation as its medium- and long-term outlook stays bullish.
  Watchlist: Bitcoin: 90 000-99 590, Ethereum: 3000-3500, Solana: 220-265

Forex

• The Japanese Yen (JPY) strengthened on Wednesday, benefiting from safe-haven demand fueled by President-elect Donald Trump’s tariff threats and declining US Treasury bond yields. Expectations that Treasury Secretary nominee Scott Bessent may prioritize budget restraint added to pressure on yields, further supporting the lower-yielding JPY. Meanwhile, the US Dollar (USD) struggled, pushing the USD/JPY pair to a three-week low near 152.25.
• The Euro (EUR) held steady around 1.0480 during Asian trading hours despite lingering challenges from Trump’s tariff stance, which weighed on market sentiment. Traders are focused on upcoming US economic data, including the Personal Consumption Expenditure (PCE) Price Index and Q3 GDP Annualized, which will be released later in the North American session. Meanwhile, expectations of a 25 basis point rate cut by the ECB in December added to the cautious tone in EUR/USD trading.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• Gold (XAU/USD) rebounded from a one-week low near $2,600, rising to a two-day high around $2,645 during the European session. Safe-haven demand, driven by geopolitical risks from the Russia-Ukraine war and President-elect Donald Trump's tariff plans, supported the metal’s gains. Additionally, the subdued US Dollar movement contributed to the upward trend.
• Oil prices steadied, with Brent crude below $73 per barrel and WTI above $68, after declines earlier this week. OPEC+ is considering delaying its planned output increases, citing concerns over a potential supply surplus. A US-mediated 60-day cease-fire between Israel and Hezbollah was announced, but renewed clashes shortly afterward highlighted the uncertainty surrounding long-term peace efforts.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!