MARKET WRAPS
Stocks:
European stocks were higher on Wednesday with the deceleration
in U.S. inflation data still supporting sentiment.
Investors have piled into stocks primarily on hopes that with
inflation falling back near the Federal Reserve's 2% target, the
central bank will start reducing borrowing costs by the spring of
2024, while the U.S. economy avoids a recession.
London's FTSE100 gained on improved risk appetite as markets
expect a Bank of England rate cut in the first half of 2024.
Markets fully price in a rate cut in May, Refinitiv data
showed.
Also, data from China showed a jump in industrial profit for
November. Chinese industrial profits rose 29.5% from a year earlier
-a sign that the government's stimulus efforts are helping the
country's economy.
U.S. Markets:
Stock futures were muted after the S&P 500 finished higher
Tuesday and just 0.45% below its record close of 4,796.56 hit Jan.
3, 2022.
Stocks to Watch
Apple was slightly lower in premarket trading. Shares fell
Tuesday for a fourth-straight session after the Biden
administration declined to overturn a recent ruling that bans Apple
from selling several models of the Apple Watch in the U.S. because
of a patent-infringement issue.
Intel extended gains, rising 0.6% in premarket trading, after
jumping 5.2% on Tuesday and closing as the best performer in the
S&P 500. The company said it would invest $25 billion in Israel
to expand its wafer fabrication site after receiving $3.2 billion
from the Israeli government.
Energy:
Oil prices edged lower with trading muted through the festive
period.
Major shipping firms including Maersk and MSC are returning to
shipping routes through the Red Sea, despite the ongoing fighting
in the Middle East. Prices climbed on Tuesday over worries that
exports through the region would be constrained by the
hostilities.
Metals:
Metal prices were rising, with increasing Chinese earnings
helping to boost prices in muted trading.
Meanwhile, worries over the wider global economy helped boost
gold prices, given its role as a safe-haven asset.
EMEA HEADLINES
AstraZeneca to Buy Gracell Biotechnologies for $1.2 Billion
AstraZeneca has agreed to buy Gracell Biotechnologies for a
transaction value of $1.2 billion, as part of the former's efforts
to grow its cell therapies business.
The upfront cash portion of the deal is $1.0 billion, a 62.0%
premium to Gracell's last closing price for its American depository
shares of $6.19, AstraZeneca said in a statement Tuesday.
Why Can't Italy's Economy Get Into Gear? Consider the Taxi
Line
MILAN-Finding a taxi in Italy's financial capital when it is
raining involves long lines and patience. During trade fairs and
fashion shows it is even harder: Demand surges but the number of
taxis stays the same.
Even on sunny days, there are lines of suitcase-laden travelers
searching forlornly for a taxi at airports and train stations
around Italy. Many locals don't even bother trying.
Israel Widens Discussions on Egyptian Peace Proposal
Israel's war cabinet took an Egyptian proposal to end the war
with Hamas to a wider group of ministers as domestic pressure grows
to secure the release of hostages and regional powers look for a
solution to end the fighting in Gaza.
The planned presentation to the 14-member security cabinet on
Tuesday night came alongside a broader briefing to the group on
hostage-release efforts and other issues related to the war's
progress, according to a person familiar with the meeting's
agenda.
Jailed Opposition Leader Alexei Navalny Says He's Fine After
Weeks Missing
Jailed Russian opposition leader Alexei Navalny resurfaced on
social media Tuesday, telling his supporters not to worry about him
a day after his associates confirmed he has been traced to a remote
penal colony in Russia's Far North.
"I am fine," Navalny said in his first comments since his
disappearance almost three weeks ago, posted via his allies on the
social-media platform X. "Thanks again to everyone for your
support."
GLOBAL NEWS
How Can Spending Be Up When People Feel Down?
According to the Misery Index, Americans shouldn't be all that
miserable. But they might only recently have started to catch
on.
Invented by the economist Arthur Okun, the Misery Index is the
simple summing of the unemployment rate and the inflation rate. It
first rose to prominence in the 1976 presidential election, when
Jimmy Carter highlighted its high level in his campaign to unseat
President Gerald Ford. This came back to bite him: When President
Carter was running for re-election against Ronald Reagan in 1980,
the index was even higher.
How China Manages Its Currency-and Why That Matters
China's approach to its currency is a mix of bold ambition and
fear of dollar strength.
The yuan has lost more than 3% of its value against the
greenback this year and was doing even worse before the dollar
slipped against most global currencies in November. The yuan traded
around 16-year lows against the dollar in September. A dollar now
buys around 7.15 yuan.
Joe Lieberman's Campaign for Third-Party Ticket Draws Ire of
Democrats-Again
For decades, Joe Lieberman has been sticking his finger in the
eye of the Democratic Party. But that is not, the former
Connecticut senator vows, what he is up to now.
"Right now, looking at the polling, it's not No Labels that's
going to re-elect Donald Trump," Lieberman said, unwrapping a cough
drop at his desk in his Manhattan law office on a chilly recent
morning. "Right now, it looks like it's Joe Biden who's going to
re-elect Donald Trump."
Write to ina.kreutz@wsj.com
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(END) Dow Jones Newswires
December 27, 2023 06:01 ET (11:01 GMT)
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