As Hurricane Irene battered New York City and the tri-state area with heavy rain and high winds on August 28, 2011, Wall Street’s bronze bull looked out over an empty Broadway in lower Manhattan, New York.
Stan Honda | AFP | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Uncertainty in Japan
Japan’s economic policy appears uncertain after the ruling Liberal Democratic Party lost its majority following Monday’s lower house election. That’s because it’s unclear what a new coalition government will look like or whether current Prime Minister Shigeru Ishiba will remain in power.
Chinese IPOs in the U.S. and Hong Kong
Analysts say more Chinese companies will list in the United States and Hong Kong next year. There have been several high-profile IPOs this year, such as Chinese self-driving company WeRide’s listing on Nasdaq and China Resources Beverage’s listing in Hong Kong last week. Higher investor sentiment, lower interest rates and fewer regulatory concerns are among the reasons for the increase in IPOs.
HSBC announces share buyback
HSBC The bank said on Tuesday that third-quarter profit and revenue beat expectations. Pre-tax profit increased by 10% compared with the same period last year, and quarterly revenue increased by 5%. However, net interest margin fell by 24 basis points. Europe’s largest bank also announced a $3 billion share buyback program, bringing the year-to-date total to $9 billion.
(PRO) How to Trade the Japanese Election
After Japan voted on Monday, the Nikkei 225 index rose on the results. But that may not be indicative of a long-term trend. Here’s how market strategists think Japanese assets will perform as the dust settles on Japan’s election.
bottom line
November is one of my favorite months of the year. The weather is starting to turn cold as the wet, windy monsoon brings cold November rains across Southeast Asia.
The market also loves November, albeit for completely different reasons. They love the heat, and November brings that heat.
According to data, the S&P 500’s average return in November compared with other months has been the highest since 1950, over the past 10 years, in election years, and other periods. Carson Group data. The last time the S&P fell more than 1% in November was during the 2008 global financial crisis.
This observation was confirmed Goldman SachsThe report noted that Oct. 28 marked “the start of the best fourth-quarter trading period for U.S. equities, with data dating back to 1928,” wrote Scott Rubner, the bank’s managing director of global markets.
The market did go up yesterday. this Standard & Poor’s Added 0.27%, Dow Jones Industrial Average up 0.65% Nasdaq Index up 0.26%. That brings the S&P’s year-to-date gain to 22.1%.
Strong performance earlier in the year further enhanced seasonal effects in November, it said Bank of America’s Chief Equity Technical Strategist Stephen Suttmeier.
“When the SPX has been rising year-to-date (which is likely in 2024), the index has gained an average of 79% between November and December,” Suttmeier wrote in a note on Monday.
However, before getting too excited, keep in mind that analysts are optimistic about the stock over the next two months. The year ahead is long: Nothing lasts forever, not even the stock market’s November dominance.
—CNBC’s Alex Harring, Pia Singh, Scott Schnipper, Hakyung Kim and Tanaya Macheel contributed to this report.
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