New York Stock Exchange on November 25, 2024.
Brendan McDiarmid | Reuters
This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed 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
Yuan stability is a priority for Beijing
The Chinese yuan declined in foreign transactions by more than 3% against the US dollar. Providing a headache for Beijingwho wants Avoid currency fluctuations Even with the cheaper yuan strengthening for exports. On Monday, I left China Standard lending rates remain unchangedWhich indicates that maintaining the stability of the yuan takes precedence over strengthening the domestic economy.
Slowing Chinese investment in the United States
Chinese investments in the United States have slowed significantly in recent years, according to the latest news American Enterprise Institute data. Only $1.66 billion will flow into the United States in 2023, down sharply from $46.86 billion in 2017. Not likely to pick up Analysts said that Trump during the second term of US President-elect Donald Trump due to “ideological incompatibility.”
First profitable week for US stocks in 2025
Markets in the United States It rose on Friday Ending the week higher for the first time in 2025. Asia-Pacific markets It went up on Monday. During the trading day, Hong Kong Hang Seng Index It jumped to its highest level since December 31. The CSI 300 index in mainland China added about 0.5% as Beijing kept key loan rates unchanged.
The clock has been restarted for TikTok
TikTok said in a Statement on X This is it Service restored in the United States After Trump wrote on his social media app Social truth He will “issue an executive order on Monday” to postpone Ban on Tik Tok. On Saturday, Perplexity AI pitched to ByteDance, TikTok's parent company, for Create a new merged entity It is bringing together Perplexity, TikTok US and new capital partners, CNBC has learned.
Billionaires within a decade, Oxfam predicts
the The combined wealth of billionaires It rose to $15 trillion from $13 trillion in 2024, according to Oxfam on Sunday. It is the second-largest annual increase in billionaire wealth since Oxfam records began. With the rate of wealth accumulation among the rich accelerating, the charity predicts that there will be at least five trillionaires within a decade.
TSMC is confident of continued funding under Trump
Taiwan Semiconductor Manufacturing Company She expects that she will continue to receive It promised $6.6 billion Under the Biden administration Chips Law and Science Even after Trump took office, Wendell Huang, TSMC's chief financial officer, said He told CNBC in an exclusive interview. In Trump's election campaign He criticized the CHIPS Act Taiwan has been accused of stealing chip business from the United States
(PRO) Trump to determine the direction of the markets
Trump is scheduled to be inaugurated later Monday. Investors will want to keep an eye on this What executive orders will Trump sign? Starting from day one of his presidency, especially with regard to tariffs and corporate policies. These orders can chart a stock's direction for a much longer period than just the near term.
Bottom line
the Standard & Poor's 500 It rose above the flashy 6,000 level after Trump won the election but has largely erased all of its gains and returned to its pre-election level in the past few weeks. As Trump prepares to enter the White House, investors appear to be preparing to play the market based on his agenda once again.
Stocks ended last week on a positive note, their first weekly gain this year. for the week, Standard & Poor's 500 Advanced 2.9% and Dow Jones Industrial Average The index jumped 3.7%, its best weekly performance since the week of the US presidential election in November. the Nasdaq Composite It added 2.5%, its best week since early December.
Banks contributed largely to the rise in indices, as better-than-expected earnings reports from major banks pushed their shares higher. shares Goldman Sachs About 12% per week popped up JPMorgan Chase It rose 8% in the same period. Overall, the financial sector rose more than 6% last week, outperforming the S&P.
Trump's term as president may provide greater momentum for bank stocks. Rising business and consumer confidence, expanded tax cuts and financial industry liberalization are potential drivers for the sector, according to Chris Sinek, chief investment strategist at Wolff Research.
“We continue to see the financial sector as the biggest sector winner under the Trump administration,” Sicknick wrote in a note on Friday.
However, apart from the expectation of Trump sitting in the Oval Office, the successive muted inflation readings for December also reinforced the animal spirit in the markets: all market sectors ended the week in the green.
Better-than-expected economic data helped “revive the mild equity narrative and likely prompted some re-risking.” Barclays strategist Emanuel Cao wrote in a note on Friday.
Usually, any change involves increased risks. This is true for Trump 2.0, but as the “2” indicates, the change we saw before may ease this uncertainty a little.
— CNBC's Alex Haring, Hakyung Kim and Sarah Min contributed to this report.
