Global markets continued to rise driven by higher-than-expected corporate earnings in the technology sector and the easing U.S. labor market. Salesforce and Marvell Technologies reported earnings growth driven by AI demand. Federal Reserve chairperson Jerome Powell expressed his optimism regarding the state of the U.S. economy. French Prime Minister Michel Barnier resigned after his government lost the parliamentary no-confidence motion. South Korean President Yoon Suk Yeol faces impeachment due to the brief imposition of martial law in the country. The Middle East continues to simmer with Syrian rebels gaining control of Aleppo and Hama. U.S. President-elect Donald Trump threatened BRICS countries with a 100% tariff if they pursue de-dollarization.

Global Updates
  • The MSCI All Country World Index rose this week. European markets were higher despite political uncertainty in France.  Germany recorded a drop in October’s industrial production due to declines in the energy and automotive sectors.
  • Bank of England Governor Andrew Bailey has signaled four interest rate cuts in 2025 conditional on easing inflation.
  • Volkswagen workers in Germany have gone on strike to protest the planned cuts in jobs and wages. 
  • Seven & i Holdings Co. is considering an IPO for its U.S. assets as part of the $60 billion management buyout of the company.
  • Royal Bank of Canada raised dividends and reported a 7% growth in fourth-quarter profits beating analyst expectations.
  • Household spending in Japan fell by only 1.3% in October, which was better than expected. 
  • Weak global demand for oil drove the OPEC+ countries to postpone planned supply increases and continue the current supply cuts to the end of 2026.
  • China has banned the export of critical minerals to the U.S in response to the restrictions placed on its Chip industry. 
  • The Indian central bank, Reserve Bank of India, pumped liquidity into the economy but held interest rates unchanged due to inflation and slowing growth.
U.S. Equity
  • The S&P 500 & Nasdaq indices rose this week driven by better than expected corporate earnings. Markets digested Fed chair Jerome Powell’s optimism regarding the state of the American economy and slowdown in private sector hiring in November. 
  • U.S. weekly jobless claims rose to 224,000. The trade deficit in October narrowed by 11.9% due to a 4% drop in imports. The decline was driven by lower imports of computers, semiconductors, industrial and capital goods, petroleum and automobile parts. 
  • Bank of America analysts raised the price target for Marvel Technology stock due to strong third-quarter revenue and higher than expected fourth quarter projected earnings driven by ‘custom AI’.
  • General Motors declared a $5 billion non-cash impairment for the company’s struggling China operations.
  • Salesforce reported higher than expected 8% growth in third quarter revenues to $9.44 billion. The company also raised the lower end of its annual revenue forecast.
  • Okta’s third quarter revenue beat due to 14% growth in revenues to $569 million. The company raised its fourth quarter revenue estimates to the $667 million to $669 million range. 
  • Southwest Airlines and American Airlines raised their fourth-quarter forecasts due to strong indicators for higher demand for holiday travels.
  • Super Micro Computer stock gained after the company reported no accounting discrepancies were found by an independent review committee.
  • BlackRock is close to finalizing a deal to acquire private credit manager HPS for $12 billion.
  • Commodities trader Cargill plans to cut 8,000 jobs weighed down by falling revenues. 
  • Stellantis CEO, Carlos Tavares, abruptly resigned from his position citing differences with the board of directors.
  • The optimism regarding crypto-friendly policies expected from the Trump regime drove Bitcoin across the $100,000 benchmark. Paul Atkins’ appointment to head the Securities and Exchange Commission drove the surge in optimism.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index was in line this week.
  • The U.S. 10-year Treasury yield dipped slightly to 4.174% and the yield on the 2-year note fell to 4.156% over the week. 
  • The U.S. Dollar Index marginally declined to 105.78 this week.

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