DayFR Euro

Positive session for EU stock markets. Martial law in South Korea shakes Won and ETF

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(Il Sole 24 Ore Radiocor) – They close European stock markets on the rise although remains under special observation: on Wednesday 4 December, Parliament could vote no confidence in Michel Barnier’s government, formed only two months ago. However, the Cac manages to stay afloat and ended the session at +0.3%, with the spread of French Oat and ten-dollar German government bonds falling to 84 points, from the top of 88 points the day before.

The Ftse Mib of Milan closes at +1%, driven by the banking risk which, according to Deutsche Bank experts, will see Popolare di Sondrio (+7%) and Bper (+0.4%) as protagonists. It’s also good of Frankfurt (+0.5%) which regains the record of 20 thousand points already touched in the morning. Also above parity are the Aex of Amsterdam (+0.2%) and the Ibex of Madrid (+1.1%).

South Korea, ETF at peak and won at two-year lows

Shares of exchange-traded funds that buy South Korean stocks fell sharply after the country’s president declared martial law in the country. The iShares MSCI South Korea ETF fell more than 5%while the Franklin Ftse South Korea ETF and the Matthews Korea Active ETF hit -4%, according to FactSet data. Among stocks, Samsung Electronics is by far the largest holding in the iShares MSCI South Korea ETF (22%), according to data reported on BlackRock’s website. Other top holdings of the ETF, which has nearly $4 billion in assets under management, include SK Hynix Inc., KB Financial Group Inc. and Hyundai Motor. Korean companies listed in the US and UK also lost ground. On the exchange front, the won fell to a two-year low and trades at around $1,430.

The stock markets today, 3 December 2024

Wall Street weak, Tesla down after rejection of Musk’s max salary

Wall Street is traveling weakly, after the records of the S&P 500 and Nasdaq Composite the day before. These days, i the most awaited data are those on the labor marketwhich will be evaluated by the Federal Reserve regarding possible interest rate cuts: in October, the number of job offers increased monthly to 7,744 million, above estimates, while there is a wait for the ADP report on employment in the private sector coming on Wednesday 4 December and for the November jobs report (Friday 6). From the latter, the creation of 177,500 jobs is expected during the month just ended, according to the FactSet consensus, or 12,000 more than in October. Analysts are betting more and more on a rate cut of 25 basis points at the next meeting, scheduled in two weeks: according to the Cme Group’s FedWatch, there is now a 72.5% chance that it will happen, compared to 61.6% on Monday. On stocks, Tesla falls after a US court has again the roughly $56 billion pay package for its CEO, Elon Musk, rejected due to irregularities in the approval process.

The banking risk awakens Piazza Affari

Banking risk is back in vogue in Piazza Affari, with analysts predicting a cascade of new mergers with possible protagonists Popolare di Sondrio (+7%) and Bper (+0.4%). According to Deutsche Bank, the two institutions could merge as an indirect consequence of the UniCredit (+1.9%) – Banco Bpm (+1.4%) operation, whether or not it is successful. There were also purchases on Saipem (+2.8%) thanks to the rise in oil prices and Prysmian (+2.1%). Stellantis rebounds (+1.6%) after the departure of CEO Carlos Tavares, while it is struggling with the search for a new CEO. Ultimately strong sales on Nexi (-3.8%) after the run on the day before.

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