- Most indices in Europe traded up today, despite a decline in China's benchmarks (which were weighed down by weaker results from Chinese giants like Baidu and PDD Holdings, which today reported its biggest drop in sales in almost 2 years) supported by sentiment in the US stock market.
- The last session on Wall Street this week is going very positively in the US market. The US500 is gaining 0.4%, while the US100 is up 0.35%, despite a more than 3% retreat on Nvidia shares, where we are seeing profit taking
- The gains are motivated in part by good data from the US. The PMI index for manufacturing rises to 48.8, while the PMI index for services rises as high as 57 points, showing that the service sector is doing very well in the US. Final Michigan consumer sentiment data indicated a slight cooling from previous readings
- Expectations for cuts in the eurozone are rising very strongly. Today, a 40% chance of a 50 basis point cut is already being priced in. This is a result of weak data
- Germany's Q3 GDP grows 0.1% y/y and 0.1% k/k, below expectations. France's industrial PMI falls to 43.2 on expectations of holding at 44.5. Services index falls to 45.7 from 49.2
- In Germany, the industrial PMI rises marginally to 43.2, while the services PMI falls to 49.2 from 51.6. EURUSD dives almost to 1.03 in response to weak data from Europe, but then rebounds to 1.042
- Gold rises above $2,700 today, rising about 6% this week, recovering most of its losses after Trump's win. Bitcoin continues its rise, approaching the round 100,000 level today at just $500. Bitcoin is benefiting from increased liquidity and expectations of changes at the helm of the SEC as early as early next year
- U.S. gas prices are down more than 6% today, excluding rollovers, on a rebound in production and the emergence of forecasts pointing to improved weather after December 1
- Crude oil continues its moderate rebound amid global geopolitical tensions and speculation that OPEC+ is expected to decide in early December to postpone raising production again. WTI crude oil returns above $71 per barrel
- Next week, we will learn about PCE inflation and the FOMC minutes. Powell has indicated recently that he is happy with the economy, and the Fed may be more cautious in cuts. If inflation comes out higher, then the chances of a cut in December could fall below 50%
- Copart shares gain 9% and reach new highs; the company reported a 12.4% y/y increase in profits (more than 14% growth in the service segment) and a nearly 9% y/y increase in net income. Investors expect lower Fed rates to boost demand in the auto market and support the company's momentum in Q4 2024 and all of 2025
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