Employees work at stations on the factory floor of Vanson Leathers, at their factory in New Bedford, on September 26.
Lynn Turner | Boston Globe | Getty Images
This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open works to provide investors with quick information 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
Markets are in red
American markets It declined on Thursday As investors priced the hotter-than-expected wholesale inflation numbers. Pan-European Stokes 600 saw a 0.14% Amid interest rate cuts by the central bank in the region. shares Brunello Cucinelli Shares jumped 8% after the Italian luxury brand raised its annual forecast for 2024.
US producer prices remain hot
we Producer prices rise 0.4% In November, higher than the Dow Jones estimate of 0.2%. On an annual basis, the producer price index rose 3%, the largest rise since the 12 months ended February 2023. The hotter-than-expected increase in producer prices comes after… Headline consumer prices It rose at a sharp annual rate in November compared to the previous month.
Inflation in India is cooling
India address Inflation rate reaches 5.48% In November, this is lower than the 5.53% expected in the Reuters poll and 6.21% in October. The reading is followed by A A disappointing quarter of economic growth For India and a The new central bank governorThis raised hopes that the Reserve Bank of India may cut interest rates at its next meeting in February.
The European Central Bank cuts interest rates
On Thursday, the European Central Bank Lowered the key interest rate to 3%, which reduces it by an expected 25 basis points. The bank also lowered its forecast for economic growth for the eurozone in 2024 to 0.7% from a previous forecast of 0.8%, and growth in 2025 to 1.1% from 1.3%.
(PRO) Tom Lee gives his 2025 forecast
Fundstrat's Tom Lee has a history of correct calls. Not only did he make a run this year, he saw it as well Standard & Poor's 500 It rebounds in 2020 after the pandemic-triggered collapse earlier that year. Lee puts him Stock market forecasts – And Bitcoin – for the year 2025.
Bottom line
The US Producer Price Index, which measures the increase in wholesale prices, was released higher than expected on Thursday. The previous day, the US Consumer Price Index showed that annual inflation in November rose from the previous month.
These numbers were probably a bit uncomfortable to deal with, and markets did not want to take inflation too hot.
Return on 10-year Treasury bonds — which affects long-term interest rates such as mortgages and business loans — jumped to 4.334%.
Major indices also fell. the Standard & Poor's 500 Lost 0.54% and Dow Jones Industrial Average It fell by 0.53%, for the sixth consecutive day in the red zone. the Nasdaq Composite It fell below the 20,000 level after falling 0.66%, dragged down by losses in technology stocks.
Adobe The company's shares fell by 13.7%, the largest decline in more than two years, after the company made concessions. Disappointing directions for its financial revenues in the first quarter.
However, the Nasdaq may find some relief the next day. Broadcom Shares rose 14% in extended trading after announcing its earnings, which the chipmaker showed Increasing its revenues from artificial intelligence By 220% for this year. Even before reporting better-than-expected earnings, Broadcom was drawing praise from analysts.
“Broadcom was once considered a value stock, but it can now be considered a growth stock. However, it is attractive for both, thanks to its consistent dividend payments and growth,” said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments. he said in a note to clients.
In fact, the company's shares are up 66.5% year to date — a number that puts Broadcom in the league of the Seven Great Companies: Shares Amazon It increased by 52.7% and apple It rose by 33.6% this year.
It is important, then, to keep sterling's performance this year in mind even as investors wonder what it will take to bring inflation numbers below the US Federal Reserve's 2% target.
— CNBC's Pia Singh, Sean Conlon and Lisa Hakyung Kim contributed to this report.
