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U.S. stock futures indicate a positive start on Wall Street, buoyed by recent inflation data and the avoidance of a government shutdown. The dollar remains strong due to high bond yields, while European markets face challenges amid political turmoil and a declining euro. Oil prices are pressured by a robust dollar and concerns over Chinese demand.
UBS economists predict the Federal Reserve will implement a 25 basis point interest rate cut in June, followed by another in September, adjusting their forecast in light of a more hawkish dot plot. The Fed's recent cuts total 100 basis points since September, with a cautious outlook for future reductions amid stronger-than-expected economic growth and persistent inflation. The U.S. dollar has rallied, driven by political factors and interest rate movements, although UBS warns of potential overvaluation and limits to further strength.
UBS economists predict the Federal Reserve will implement its next interest rate cut of 25 basis points in June, followed by another in September, totaling 50 basis points for 2025. This follows a recent cut that brought the target range to 4.25%-4.5%. The Fed's updated outlook indicates a more cautious approach, with potential adjustments extending through 2027, while the U.S. dollar is expected to remain strong amid political factors, despite signs of overvaluation.
Financial analysts' confidence in the Swiss economy has plummeted, with the UBS-CFA index dropping to -20.0 points in December, marking a seven-month decline. Only 14.3% of respondents foresee improvement, while 34.3% predict worsening conditions. Expectations for inflation and unemployment are also pessimistic, with a majority anticipating a rise in joblessness and a strengthening of the Swiss franc against the euro.
BingX has launched free SEPA and SEPA Instant euro deposit services, allowing users to make real-time euro payments without transaction fees. This enhancement enables seamless funding for traders, facilitating immediate responses to market opportunities and improving the overall trading experience. The exchange, serving over 10 million users globally, continues to innovate in the cryptocurrency space.
UBS has lowered its price target for Mazda Motor Corp to ¥900 from ¥1,000, maintaining a Sell rating due to anticipated declines in earnings per share (EPS) amid weak sales across Japan, Europe, and Asia, and increased competition in the U.S. market. The firm forecasts a 19% drop in EPS for the fiscal year ending March 2025 and an 11% decrease for March 2026, alongside a significant 25% year-over-year fall in operating profit for March 2026. Additionally, a 1% depreciation of the yen could boost EPS by 7.9%, highlighting currency sensitivity.
UBS has lowered its price target for Mazda Motor Corp to ¥900 from ¥1,000, maintaining a Sell rating due to anticipated declines in earnings per share (EPS) amid weak sales in Japan, Europe, and Asia, and increased competition in the U.S. market. The firm forecasts a 19% drop in EPS for the fiscal year ending March 2025 and an 11% decrease for March 2026, alongside a significant 25% year-over-year fall in operating profit for March 2026. Additionally, a 1% depreciation of the yen could boost EPS by 7.9%, highlighting currency sensitivity.
Dow futures are on the rise as the stock market prepares for a holiday-shortened trading week. Intraday data is provided by FACTSET, with all quotes reflecting local exchange time. Note that real-time last sale data for U.S. stocks is based on trades reported through Nasdaq, and intraday data may be delayed by at least 15 minutes or as per exchange requirements.
UBS shares, valued at CHF 17.32 on December 23, 2014, would have turned a CHF 1,000 investment into 57.737 shares. By December 20, 2024, the share price rose to CHF 26.71, increasing the investment's worth to CHF 1,542.15, a gain of 54.21%. UBS's market value reached CHF 85.10 billion.
Swiss businesses are optimistic about a new EU trade deal that aims to stabilize relations and enhance market access, crucial for the economy, which is projected to grow by 1.3% in 2025. The agreement will harmonize standards and support the pharmaceuticals sector, despite potential challenges in neighboring Germany. While the deal is a positive step, concerns about foreign demand persist, particularly in light of recent sales declines in the tech and engineering sectors.
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