Stocks, News, Data & Earnings | Wilnesh News

At 8:40 a.m. in London, the euro fell 0.72% against the dollar to trade at $1.0497, with traders keeping a close eye on political fluctuations in France.

As budget talks get underway, chances appear higher that Michel Barnier’s fragile government will be overthrown in a no-confidence vote on Monday by a coalition of far-right and left-wing parties. Reportedly hit a wall over the weekend.

Expectations for interest rates from the Federal Reserve and the European Central Bank also weighed on foreign exchange markets, with the dollar broadly higher after President-elect Trump extended his latest tariff threats to the entire so-called BRIC alliance. The sweeping tariffs are expected to prompt the Federal Reserve to be more cautious in cutting interest rates due to the possibility of rising U.S. inflation.

Meanwhile, markets are pricing in a slightly higher chance of a 50 basis point rate cut by the European Central Bank at its December meeting, after JPMorgan economist Greg Fuzesi reported on Friday that given weak business activity indicators and services As industrial inflation slows down, interest rate cuts may be necessary.

After Eurozone inflation rose to 2.3% in November, a 25 basis point interest rate cut is still seen as the most likely outcome.

—Jenny Reed

European stocks opened lower on Monday Stoke 600 The index fell 0.1% in early trading.

French CAC 40 The index fell 0.77% as investors focused on ongoing political volatility in the country. German German DAX Index fell 0.15%, while the UK FTSE 100 Very flat.

—Jenny Reed

According to data from lender Nationwide, UK house prices rose by 1.2% quarterly in November, significantly higher than the 0.2% rise forecast in a Reuters poll of economists.

Annual house price growth jumped to 3.7% from 2.4% in October, the highest in two years.

“The acceleration in house price growth is surprising because affordability remains stretched by historical standards and house prices remain high relative to average incomes,” Nationwide chief economist Robert Gardner said in a statement. And interest rates are well above pre-COVID levels.

Gardner said low unemployment, wage growth and strong household balance sheets were likely to have supported the UK housing market this year, with debt levels relative to household income at their lowest since the mid-2000s.

He added that activity is likely to surge in the coming months as buyers look to avoid an upcoming increase in stamp duty, a tax on home purchases.

—Jenny Reed

The CEO of European and American automaker Stellantis unexpectedly resigned on Sunday, citing “differences” between senior executives and the board of directors.

Carlos Tavares was scheduled to retire in 2026.

The company said it expects to find his successor in the first half of next year and will appoint a new interim executive committee led by Chairman John Elkann.

Stellantis, which makes the Jeep, Dodge, Fiat and Peugeot brands, among others, has been grappling with declining sales, high North American inventories and fierce competition from China amid an industry-wide shift toward electric vehicles.

Tavares led the company through its merger with Fiat Chrysler Automobiles NV and PSA Group in 2021 and prioritized a major cost-cutting program.

His early and immediate departure leaves the group with less time to manage its brands, reverse market share losses and industrial capacity in Europe and North America, Jefferies analyst Philippe Houchois said in a note on Sunday. “Loss of leadership in making critical decisions” due to excess and other aspects.

Houchois added that Stellantis still has “well-functioning governance and board independence” and recently confirmed its 2024 guidance, but noted that its troubles “continue to cast doubt on the global brands group’s business model.” ”.

—Jenny Reed, Michael Whelan

Manufacturing activity among China’s small manufacturers continued to expand in November, a private survey showed on Monday, suggesting the country’s recent stimulus measures have helped boost some sectors of the struggling economy.

The Caixin/S&P Global Manufacturing Purchasing Managers’ Index was 51.5, exceeding the median forecast of 50.5 in a Reuters poll. It also marked the second month in a row that official data remained above the key 50 level that separates growth from contraction.

This private instrument follows Official PMI dataData released on Saturday also showed that the country’s manufacturing activity expanded to 50.3 in November from 50.1 the previous month. The reading beat Reuters’ forecast of 50.2.

Read the full story here.

——Li Yingshan

One of India’s largest automakers recently launched two new electric vehicles priced at around $25,000 that are highly competitive, challenging domestic and foreign rivals in the growing Indian market.

Now, investment banks say the stock faces upside risks if the company’s new vehicles take off.

CNBC Pro subscribers can read more here.

— Ganesh Rao

The stock market did not experience a correction, nor did it experience a retracement of 10% or more. S&P 500 Index This year, according to Bespoke Investment Group.

The research firm said that since 1928, the S&P 500 has adjusted on average every 346 days, almost every year. However, the market has strengthened in recent years and has not seen such a retracement for half the time since 2000.

The S&P 500 is up more than 26% in 2024 and is expected to have its best year since 2021.

— Yun Li

U.S. stocks have soared this month as Trump’s second administration pledged to further loosen market regulations. But Jefferies strategist Christopher Wood speculated in an email on Friday whether the market would peak before Trump takes office on January 20.

“Financial markets can become very extreme at inflection points, and one must wonder whether such an inflection point is approaching,” he wrote. “As people talk about ‘American exceptionalism,’ it is worth noting that the S&P 500’s The price-to-sales ratio has almost returned to a record high. The United States currently accounts for 66.7% of the MSCI All Country World Index, a record high.

Against this backdrop, both institutional and retail investors have shown “zero interest” in investing in stocks outside the United States, Wood added.

—Lisa Kelley Han

European markets are expected to open lower on Monday.

British FTSE 100 German index expected to open 2 points lower at 8,285 German DAX Index France fell 19 points to 19,606 CAC Down 41 points to 7,188 points, Italy FTSE MIB It fell 167 points to 33,275, according to IG data.

Data released include European manufacturing PMI data and Italian gross domestic product.

— Holly Elliot