The PULSE: Global Economic and Market News for December 3, 2024

As of December 3, 2024, global financial markets are navigating a complex landscape shaped by robust U.S. economic performance, European political uncertainties, and evolving trade dynamics in Asia.

United States:

• Equities: The S&P 500 reached a new record high, closing at 603.91 USD, up 0.04%. The Nasdaq Composite also set a record, while the Dow Jones Industrial Average dipped slightly by 0.2%. Technology stocks contributed significantly to market performance, particularly in the Big Tech sector. Associated Press

• Federal Reserve Outlook: Federal Reserve Governor Christopher Waller indicated a strong inclination towards cutting the benchmark interest rate in the upcoming December meeting, citing controlled inflation and a balanced labor market. Reuters

Europe:

• Political Uncertainty in France: The euro weakened due to political uncertainties in France, where Prime Minister Michel Barnier faces a vote of no confidence. This political instability has negatively impacted both the euro and French equities. Reuters

• Policy Response: In reaction to potential U.S. protectionist policies under President-elect Donald Trump, EU Commissioner Stéphane Séjourné advocates for a "Europe First" industrial strategy to safeguard European industries. Reuters

Asia:

• China's Economic Recovery: China reported its best manufacturing PMI over a year, climbing to 51.7, signaling expansion. Export orders surged as global demand picked up ahead of the U.S. presidential transition. However, domestic consumption remains tepid, prompting policymakers to enact new stimulus measures, including tax rebates and subsidies for small businesses. Reuters

• Japan's Markets: The Nikkei 225 rose 1.9%, supported by a weaker yen, which benefited export-oriented sectors such as automotive and electronics. Reuters

Commodities:

• Oil: Prices rose following positive Chinese manufacturing data and geopolitical tensions, including the resumption of attacks by Israel in Lebanon. Reuters

• Gold: Prices declined, influenced by a strengthening U.S. dollar and shifting investor sentiment. Reuters

Corporate Developments:

• Luxury Goods: Analysts expect a rebound in the luxury sector in 2025, with Chinese and U.S. markets driving demand. Stocks like LVMH and Hermès gained positive outlooks. Financial Times

• Automotive Industry: Stellantis faced a sharp stock decline after CEO Carlos Tavares announced his resignation, raising concerns about strategic continuity as the company struggles with declining EV sales in Europe. Associated Press

Global Outlook:

The International Monetary Fund projects global growth to remain at 3.1% in 2024, slightly increasing to 3.2% in 2025. Inflation is expected to decrease, reaching 5.8% in 2024 and 4.4% in 2025. International Monetary Fund

In summary, while global markets show resilience, they continue to navigate challenges such as political uncertainties, policy shifts, and economic indicators. Investors are advised to stay informed and consider diversification to mitigate risks.

Sources: AP News (https://apnews.com/article/170ad728bd136fbcf5dc1511bac24bbf), Reuters (https://www.reuters.com/markets/us/global-markets-view-usa-2024-12-03/), Financial Times (https://www.ft.com/content/7a2fc524-37f8-46d2-ae2f-480f940e5350), IMF (https://www.imf.org/en/Publications/WEO)

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