Markets in a Minute 25th November 2024

GIVING. THANKS!

Last week, US stocks were supported by the market-friendly appointment of Scott Bessent as Treasury Secretary and healthy business sentiment (PMI) data. This contrasted with weak PMI data in the Eurozone, which pushed European bond yields lower.
This week, Eurozone inflation data (Friday) and various consumer and business confidence surveys are likely to be of interest, with the US closed on Thursday for Thanksgiving.
KEY DATA AND EVENTS

Artificial intelligence and market bellwether Nvidia announced Q3 earnings. Revenue doubled compared to a Q3 2023, well above market expectations. Revenue guidance for Q4 was in line with projections.

Global PMI data - a business survey showing current and expected conditions - for November indicated a divergence between the US and the Eurozone. The composite PMI for the latter fell to a 10-month low as both manufacturing and services indicated a contraction in output. Meanwhile, that for the US rose to the highest level since 2022 as both sectors showed improvement from October.

EQUITY MARKETS

Last week, the S&P 500 rose by 1.7% as the appointment of a more market-friendly US Treasury Secretary, Scott Bessent, and robust PMI data supported sentiment. The Euro Stoxx 600 was up by 1.1%, bolstered by the potential for lower interest rates to support activity.

BOND MARKETS

Bond yields fell (bond prices rise as bond yields fall) last week as expectation for rate cuts, especially in the Eurozone, rose. Last week, the 10-year German bund yield fell by 9bps to 2.27%, while that for the equivalent US Treasury was down by 2bps to 4.42%.

WATCH POINTS
  • Mon 25th Germany - IFO business survey
  • Tue 26th US - Consumer confidence
  • Wed 27th US - Initial jobless claims, durable goods • Germany - GfK consumer confidence
  • Thu 28th Eurozone - Consumer confidence
  • Fri 29th Eurozone - Consumer prices

This is intended as a general review of investment market conditions. It does not constitute investment advice and has not been prepared based on the financial needs or objectives of any particular person.