Market Summary
Global markets trade cautiously ahead of a busy week of central-bank decisions and delayed U.S. data. The S&P 500 is flat, the Nasdaq shows tech-led volatility while the Dow holds modest gains. Investors are rotating out of AI names into defensives and energy, with China data and central-bank guidance the main catalysts.
Australia has declared the Bondi Beach shooting a terrorist incident after a deadly attack at a Jewish Hanukkah event. Authorities are treating it as an antisemitic terror attack while emergency response and security measures are scaled up.
Figure of the Day
153 – Drones Ukraine said Russia launched overnight, signalling intense escalation.
Police detained a person of interest after a classroom shooting at Brown University that left students dead and injured. Campus security and local prosecutors are continuing the investigation as the community mourns.
iRobot filed for Chapter 11 and agreed to hand control to secured lenders and a key Chinese supplier amid years of declining profits. The company is seeking to reassure customers and preserve service while it restructures.
Bullish
Eli Lilly delivers blockbuster results – Investors cheer drug sales strength
Eli Lilly reported another quarter of exceptional sales for its weight-loss portfolio and confirmed strong guidance, sending shares higher as investors bet on sustained blockbuster revenue streams.
More on finance.yahoo.com
China’s investment slump deepened, nearing the first contraction in decades and extending a multi-month slide. Data on retail sales and industrial output underscore rising pressure on policymakers to deploy stimulus.
Ukraine signalled willingness to give up NATO membership in exchange for security guarantees as negotiators seek progress in peace talks. Kyiv’s shift is a major diplomatic concession designed to break the impasse with Russia.
Bearish
Sanofi shares slump after twin setbacks in multiple-sclerosis program
Sanofi disclosed a delayed regulatory review and a trial failure for a key MS drug, prompting a sharp share decline and renewed questions about its late-stage pipeline.
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The Bank of Japan signalled that the case for a rate hike has strengthened as wage momentum improves. Markets are positioning for tighter policy and the yen has responded to rising odds of a BOJ move.
Markets are parsing fresh central-bank moves and data for signs the Fed will cut again, with some banks predicting a January move. Investors weigh delayed reports and ‘ghosts’ in the data that could influence policy timing.
Regulatory Impact
UK to bring crypto into the regulatory perimeter by 2027; Denmark is considering limits on VPN use; U.S. executive action seeks to pre-empt state AI rules and faces legal pushback.
Nvidia’s H200 exports and chip flows to China have raised the odds of rapid AI deployment there, while Intel eyes acquisitions to bulk up its AI chip capability. The moves highlight a private-sector scramble to own AI hardware.
ServiceNow appears poised to buy cybersecurity startup Armis in a deal that could reach blockbuster levels. The buyout would reshape the security software landscape and deliver a windfall to early investors.
Quote
AI compute demand is exploding.
— Jensen Huang, Nvidia CEO
The LME proposed new position limits as exchanges tighten oversight of commodities trading. At the same time the ECB reported a surge in payment fraud, underscoring rising risks for financial infrastructure.
The UK set a timetable to bring crypto into the formal regulatory perimeter by 2027, aiming to protect consumers and bolster London’s fintech status. Officials framed the move as needed to align digital assets with conventional finance rules.
U.S. Treasury yields moved as investors awaited key macro data, with the yield curve showing sharp moves since the Fed’s cuts. Traders are sensitive to fresh economic prints that will shape policy expectations into year-end.
Israel struck a top Hamas manufacturing commander in Gaza, a blow to militant networks, while a recent attack in Syria killed U.S. troops and raised questions about local security forces’ ties. The strikes and attacks highlight ongoing regional volatility.
SpaceX has begun interviewing banks as it lines up advisers for a potential IPO, triggering valuation moves across related listings. Alphabet stands to record another paper gain if SpaceX’s valuation is realized via tender activity.
Hong Kong’s landmark national security trials resulted in convictions for media tycoon Jimmy Lai, a decision with broad political and market implications. The rulings underline Beijing’s tightening grip on dissent in the financial hub.
Asian markets slid as AI-related sentiment cooled and weak China data added pressure, while U.S. equities retreated on tech-led selling. Investors face a key week of central-bank decisions and economic reports that could reset risk appetite.
Severe flooding in Sumatra has left Indonesia facing a long recovery, with officials warning normalcy could take months and casualties mounting. Local authorities have appealed for international help while relief operations continue.
London-based PolyAI closed an $86m Series D to expand its call-centre AI voice platform, underscoring ongoing investor appetite for enterprise AI. In Vietnam, digital insurer Saladin raised Series A capital as regional insurtech funding accelerates.
