The American stock markets traded cautiously on Monday, with Wall Street’s main indices reaching new record levels, buoyed by stocks expected to benefit from the potential fiscal policies of newly elected Republican President Donald Trump. Market volume was high, with 15.4 billion shares traded compared to an average of 12.8 billion shares over the past 20 trading days. Investors are closely monitoring the Consumer Price Index, to be released on Wednesday, along with other key economic data throughout the week for signals on the economy and monetary policy outlook. Both the broad S&P 500 index and the tech-heavy Nasdaq rose by 0.1 percent, while the Dow Jones Industrial Average climbed by 0.7 percent.
Commodities declined on Monday, with oil prices trending downwards after China’s latest stimulus plan fell short of investors’ expectations for demand growth in the country, amid expectations of increased supply by 2025. Donald Trump’s victory in the US election continues to influence the market. A stronger dollar makes commodities traded in US dollars, such as oil, more expensive for holders of other currencies, which tends to put pressure on prices. Bank of America Securities noted on Monday that non-OPEC oil supply is expected to increase by 1.4 million barrels per day in 2025 and 900,000 barrels per day in 2026. By 20:35, WTI crude oil had fallen by $2.4 to $68.0 per barrel, while Brent crude had dropped by $2.1 to $71.8 per barrel.
Base metals declined broadly yesterday, with aluminum down by 2.1 percent followed by tin which fell by 1.8 percent. Nickel and copper both decreased by 1.5 percent and 1.4 percent, respectively. Zinc closed 0.13 percent below zero, while lead traded sideways. Gold prices fell on Monday, pressured by the continued rise of the US dollar and the effects of Donald Trump’s victory in terms of fiscal policy and expected interest rate cuts. The price of gold dropped by $65.1 to $2,618.9 per ounce.
Among US-listed stocks, Tesla continued to rise on Monday, advancing by 9.1 percent following Donald Trump’s win in the US presidential election. Following the surge in Bitcoin, cryptocurrency exchange Coinbase jumped by 19.8 percent, while Microstrategy, which holds large amounts of Bitcoin, rose by 25.7 percent. Pharmaceutical company Abbvie plummeted by 12.6 percent after announcing that a schizophrenia treatment method was not as successful as expected.
The US ten-year yield remained unchanged at 4.31 percent.
Asian stocks traded lower on Tuesday morning, while the dollar held at four-month highs. Chip stocks in the region have been under pressure this week after reports that the US ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers, often used in AI applications. Meanwhile, Chinese stocks edged up slightly, while the Hong Kong market declined. Sentiment remained predominantly negative after Beijing’s latest stimulus package did not deliver the direct consumer-focused support that investors had expected. By 07:50, Japan’s Nikkei 225 index had regressed by 0.4 percent, while the Chinese Hang Seng Index and Shanghai had dropped by 3.2 percent and 1.8 percent, respectively.
On the Stockholm Stock Exchange, Astra Zeneca reported at 08:00. The company’s revenue for the third quarter was approximately 147 billion kronor, surpassing analysts’ expectations. Earnings per share also delivered positive news, landing at $2.08 per share.
In morning recommendations, DNB Markets raised the target price for Clas Ohlson to 210 kronor (from 190) and reiterated a buy recommendation. Millicom’s target price was raised by DNB to 335 kronor (from 330) with a buy recommendation. Investment bank JP Morgan raised the target price for ABB to 49 Swiss francs (from 45) while maintaining a neutral recommendation.
On a macro level, Tuesday is moderately calm. The day began with the release of Swedish unemployment figures at 06:30, which stood at 6.9 percent, followed by the UK’s unemployment figures at 08:00, increasing by 0.3 percentage points to 4.3 percent. At 08:00, the German monthly consumer price index for October was reported at 0.4 percent. At 16:00, Waller from the Federal Reserve will deliver a speech.