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Asian stocks saw a slight increase as investors prepared for the Federal Reserve's final policy decision of the year, with a regional gauge rising 0.3%. Notably, Nissan's shares surged 24% amid merger talks with Honda, while US futures also ticked higher. The Fed is expected to cut interest rates by 25 basis points, with attention on its outlook for 2025 amidst mixed US economic data and potential inflationary pressures from proposed policies.
The ASX 200 is up over 8% year-to-date as 2024 closes, driven by strong performances in financial stocks, particularly the Commonwealth Bank, which rose 40%. In contrast, the tech sector surged over 50%, while energy and materials faced declines. Looking ahead, forecasts for 2025 vary, with predictions for the ASX 200 ranging from 7900 to 9300 points, influenced by geopolitical developments and potential RBA rate cuts.
IG
The US Treasury, in collaboration with the UAE, has sanctioned two Chinese nationals and a UAE-based company for their roles in facilitating North Korean digital asset laundering. Lu Huaying and Zhang Jian allegedly converted cryptocurrency to fiat for goods destined for North Korea, while Green Alpine Trading is accused of being a front for money laundering operations linked to North Korean financial activities. North Korean groups reportedly stole between $600 million and $3 billion in cryptocurrency from 2017 to 2023 through various illicit methods.
UBS has maintained a 'Buy' rating for Vinci, setting a target price of 132 euros following strong traffic figures for November. Analyst Gregor Kuglitsch noted solid growth in airport traffic, while highway activity benefited from calendar effects. Vinci, a leader in construction and concessions, generates significant revenue from infrastructure design, energy, and telecommunications.
Commodities play a crucial role in the global economy, categorized into hard commodities like oil and gold, and soft commodities such as wheat and livestock. Investors can gain exposure through direct trading, spread betting, CFDs, or by using Exchange Traded Commodities (ETCs) and Exchange Traded Funds (ETFs), which track commodity performance without direct ownership. While ETCs focus on individual commodities and may carry counterparty risks, ETFs offer diversification and liquidity, often tracking futures contracts rather than physical assets.
IG
Amphenol Corporation, rated as a Buy by UBS, specializes in designing, manufacturing, and marketing connectors, interconnection systems, and wiring products. The company's net sales are distributed geographically, with 35.1% from the United States, 23% from China, and 41.9% from other regions.
Justin Sun, founder of Tron, has unstaked $209 million worth of Ethereum from Lido Finance, raising concerns about potential price turbulence for the cryptocurrency. His recent withdrawals, totaling over 52,905 ETH, follow a pattern of significant sell-offs that could exacerbate market volatility. Despite a recent 28% surge in Ethereum's price over the past month, large-scale liquidations historically lead to price crashes, leaving investors wary of Sun's next moves.
CoinShares CEO Jean-Marie Mognetti expressed optimism about Bitcoin ETFs and other cryptocurrencies like Ethereum under President-elect Donald Trump, noting significant inflows into U.S. Bitcoin ETFs. He anticipates a positive regulatory environment that could enhance investment demand for digital assets. Mognetti's views align with Michael Saylor's call for a U.S. strategic Bitcoin reserve, highlighting a potential shift in U.S. policy towards cryptocurrencies.
Needham has upgraded Alcon Inc.'s price target from $103 to $108, maintaining a Buy rating and naming it a top pick for 2025 due to strong margin and earnings growth prospects. The firm highlights promising upcoming product launches and a solid financial position, with Alcon reporting a 6% sales increase and a 25% rise in core EPS in Q3 2024. Alcon's strategic initiatives and partnerships, alongside a commitment to innovation, position the company well for future growth.
Needham has upgraded Alcon Inc.'s price target from $103 to $108, maintaining a Buy rating and naming it a top pick for 2025 due to strong margin and earnings growth prospects. The firm highlights promising product launches and a solid financial position, with a recent 6% sales increase and a 25% rise in core EPS. Alcon aims for mid-20s operating margins by 2027, supported by strategic partnerships and ongoing innovation.
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