To Watch on the Markets!
Macro / Economy
The dollar is declining against the euro and yen, as markets anticipate further Fed rate cuts by the end of the year.
Trade tensions between the US and China are reigniting concerns over supply chains, especially regarding rare earths.
The US 10-year yield remains under pressure, as investors favor safe-haven assets like gold, which is now above USD 4,200 per ounce.
In Europe, industrial slowdown persists with manufacturing PMIs expected in contraction zone, adding caution before the upcoming ECB decisions.
European Companies
LVMH soars more than 13% after reporting slightly higher sales in the third quarter. Demand is rebounding in China, boosting the entire luxury sector (Hermès, Kering, L’Oréal).
ASML exceeds expectations with record orders of 5.4 billion euros, supported by demand in semiconductors linked to artificial intelligence.
Anglo American proposes remedies to the European Commission to gain approval for its acquisition of MMG's nickel assets, including ten-year supply guarantees.
US Companies
Major US banks are showing a strong earnings season.
Morgan Stanley beats forecasts thanks to the rebound of mergers and acquisitions activity, while Bank of America posts increased profit and climbs more than 4% at the open.
Technology and semiconductor stocks benefit from ASML's surge, fueled by enthusiasm around generative AI.
🪙 Cryptos
Bitcoin and Ether retreat, dragged down by a wave of leveraged liquidations and renewed caution related to US-China tensions.
Crypto markets are showing a stronger correlation with tech indices, reinforcing the perception of crypto as an asset now fully integrated into global risk cycles.
Platforms like Coinbase and Binance are recording a strong increase in volumes, a sign of extreme volatility.
Trade & Geopolitics
The United States is denouncing China’s new restrictions on rare earths, calling them a threat to global economic security.
This decision is sparking concerns about a new supply shock in high-tech and defense sectors.
Meanwhile, the European Commission continues its review of the Anglo American / MMG case, wary of an excessive concentration in the nickel market.
Story of the Day
The European luxury rally, led by LVMH, symbolizes the return of the Chinese consumer and the resilience of high-end brands.
This movement, the strongest for the group in over two years, illustrates the selective reopening of Asian demand, despite fragilities in the global macro context.
Luxury thus once again becomes a leading barometer of economic confidence in Asia and Europe.
What to Watch at the Open
European and German PMI indices at 8:30am
Speech by Christine Lagarde (ECB) at 9:00am
Results of HSBC and UBS
Movements in the dollar and gold