In a rousing display of bullish fervor, financial markets ascended, lifted by the prospects of reduced interest rates and the buzz of potential stimulus measures from China's financial policymakers. Wall Street, in a show of strength, notched up a series of fresh records, a testament to the robustness of the U.S. economic landscape. Overall, mixed economic data appears to endorse the nation's fiscal fitness. Yet, traders are still betting on further rate cuts. As the year's curtain slowly draws to a close, nothing, it seems, can quell the infectious optimism that's gripping investors from New York to London.
Weekly variations*
DOW JONES INDUST...
44,642.52  -0.6%
Chart DOW JONES INDUST...
NASDAQ 100
21,622.25  +3.31%
Chart NASDAQ 100
FTSE 100
8,308.61  +0.26%
Chart FTSE 100
GOLD
$2,632.92  -0.49%
Chart GOLD
WTI
$66.98  -1.72%
Chart WTI
EURO / US DOLLAR
$1.06  +0.22%
Chart EURO / US DOLLAR
This week's gainers and losers
Gainers:

DocuSign +34.26%: The company reported fiscal third-quarter results that surpassed expectations, with improved customer usage. However, RBC Capital Markets noted that the company's continued growth hinges on the increased adoption of its Identity and Access Management (IAM) services. The company has upgraded its fiscal 2025 revenue forecast, indicating confidence in sustained strong performance,

Watches of Switzerland +20.86%: Good surprise at the watch retailer! Sales better than expected. Annual forecasts maintained. The USA was particularly dynamic. 

Marvell Technology +22.46%: Targets for year-end appeal to investors. Semiconductor company to extend collaboration with AWS to supply chips for data centers: agreement signed for 5 years. 

Ulta Beauty +10.74%: Ulta Beauty saw its stock price increase after reporting a strong third-quarter performance. The company's sales trends improved, and margins stabilized, leading to a better-than-expected gross margin of 39.7% for the quarter. The positive report, coupled with a reaffirmed outlook for the fourth quarter, has reassured investors

Salesforce +9.7%: Things are going well for the software solutions provider, which exceeded expectations on the occasion of its third-quarter publication. Sales forecasts are revised upwards for 2025. 

Legal & General +7.32%: The British financial services group is optimistic for the end of the year and beyond. By 2027, the company is targeting annual growth of between 6% and 9% and higher returns to shareholders.

Losers:

Intel -13.01%: The dismissal of CEO Pat Gelsinger has brought its turnaround efforts to an abrupt halt: the chipmaker's future is uncertain. 

Wavestone -11.39%: The consulting firm has lowered its annual targets due to difficult market conditions and a lack of visibility. 

UnitedHealth -9.93%: The group experienced a stock fluctuation following the shocking news of the murder of Brian Thompson, the CEO of UnitedHealth's insurance unit. The tragic event has caused uncertainty among investors, as the company faces a sudden leadership vacuum and potential reputational damage. 

Fedex -7.27%: The carrier suffered the wrath of Bernstein, which cut its recommendation.

Toronto Dominion Bank -7.22%: The banking group suspended its medium-term financial targets and did not provide any answers to investors who were waiting to hear more about the way forward regarding the US money-laundering investigations. 

Synopsys -7.38%: The software company disappointed with its forecasts for the next financial year. Sales were particularly weak in China. 

St. James's Place -5.21%: The asset management company wants to save £200m. To achieve this, around 500 people are to be made redundant. 
Chart Commodities
Commodities

Energy: The oil market remains under pressure. Crude oil prices fell again this week as OPEC postponed a production increase for the umpteenth time. The enlarged cartel will only be able to lift its quotas in April 2025. This decision was expected and reflects continued caution in the face of a demand outlook that is struggling to reassure. Brent crude, the market's barometer, is stabilizing at around USD 71.30 a barrel, while WTI is trading near USD 67.40.

Metals: On the metals front, a glimmer of hope seems to be emerging from China. November's manufacturing PMI indices reveal a revival in activity, giving copper a breath of fresh air. In London, a tonne of copper is now trading at around USD 9,100 (cash price). Is this a real upturn or just a blip? It's hard to say as Donald Trump takes office, promising a new trade war with Beijing. As for gold, there's not much to report. The gold metal is treading water around USD 2,630.

Agricultural products: Agricultural markets are lively, particularly coffee and cocoa, which are hitting new highs. Concerns about supply, notably due to unfavorable weather conditions in West Africa, the cradle of these crops, are fueling the uptrend.

Chart Commodities
Macroeconomics

Atmosphere: Clear. The US economy continues to perform well. For the first time in months, the manufacturing sector activity index had the luxury of coming in above expectations at 48.4. Below 50, the sector is still considered to be in contraction, but we'll have to watch for the impact of Donald Trump's measures before we can talk of an end to the crisis. The eagerly-awaited employment report was broadly in line with expectations, with 227k jobs created in November, against an estimate of 220k. The only slight downside was that wages (+4% y/y) continued to rise at a faster pace than the Fed's inflation target (2%). But this is not enough to undermine investor confidence in a further 25 basis point rate cut. The 10-year yield is well aware of this, falling to 4.15%.

Crypto: Another new record for bitcoin this week. The symbolic $100,000 mark was broken on Wednesday night, setting a new high of $104,000. One of the main reasons for this week's surge was Trump's announcement that he intends to appoint Republican lawyer Paul Atkins to head the US Securities and Exchange Commission (SEC). Last year, Paul Atkins had publicly criticized SEC officials, particularly chairman Gary Gensler, for not being “accommodating” enough to cryptocurrency-related companies, claiming that their strategy was deterring entrepreneurs from investing in the US market. This appointment therefore augurs a more flexible federal agency, favorable to the ambitions of players in the cryptosphere. Since Thursday, bitcoin has hovered around the $98,000 mark, but remains up 0.5% since Monday. Ether (ETH) rose by 3.5% to $3,850 over the week, while the total value of the crypto market reached a new record of $3.5 trillion.

Historical Chart
Central banks make a comeback
The fortnight leading up to the weekend before the balmy Christmas Eve will see a number of decisions by central banks, most of which are engaged in a process of monetary easing. The Reserve Bank of Australia (Tuesday) and the Bank of Canada (Wednesday) will precede the European Central Bank (Thursday). Expectations are high for the latter, while France and Germany are convalescing. Inflation is never far away, with the publication of November price trends in China (Monday) and the USA (Wednesday).
On the corporate front, a few offbeat companies will be interspersed between the economic statistics, notably Oracle, Adobe and Broadcom in the technology sphere, and Inditex, Costco and Charles Schwab beyond.
We wish you a very pleasant weekend.
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*The weekly movements of indexes and stocks displayed on the dashboard are related to the period ranging from the open on Monday to the sending time of this newsletter on Friday.
The weekly movements of commodities, precious metals and currencies displayed on the dashboard are related to a 7-day rolling period from Friday to Friday, until the sending time of this newsletter. These assets continue to quote on weekends.