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UBS has lowered its price target for Mazda Motor Corp to ¥900 from ¥1,000, maintaining a Sell recommendation due to anticipated declines in earnings per share (EPS) amid weak sales in Japan, Europe, and Asia, alongside increased competition in the US. The firm forecasts a 19% reduction in EPS for the year ending March 2025 and an 11% drop for March 2026, with a significant 25% decline in operating profit expected for the latter year. 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.
EUR/USD, EUR/GBP, and GBP/USD are currently above minor support levels amid low-volume end-of-year trading. EUR/USD has recovered from its November/December lows, with minor resistance at $1.0454-to-$1.0461 in sight. GBP/USD has found short-term support after hitting an eight-month low, aiming to test resistance at $1.2608-to-$1.2617.
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EUR/GBP has bounced off support after the Bank of England held interest rates, recovering from a year low of £0.8226 towards minor resistance at £0.8327. Meanwhile, EUR/JPY has lost upside momentum, with the short-term uptrend remaining intact as long as the ¥159.82 low holds. USD/JPY's rally has paused, trading above the November ¥156.74 high, with potential targets at ¥157.13 and ¥157.71.
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AUD/USD fell to a two-year low of 0.6251, down 1.75% last week, following a hawkish Fed interest rate cut and a MYEFO report indicating larger Australian budget deficits. The RBA's upcoming meeting minutes are expected to reflect a dovish tone amid weaker economic activity, with a 58% chance of a rate cut in February. A break below the 0.6170 support level could lead to a test of the 0.6000 mark, while a rebound above 0.6350 may signal easing downside risks.
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Asian shares are mostly higher following a rally on Wall Street, which capped a challenging week for the markets. Investors are navigating a landscape influenced by various cookie policies and data processing practices, emphasizing the importance of consent and privacy in digital interactions.
Russia, India, and South Africa have clarified that BRICS is not seeking to undermine the US dollar's status as the world's reserve currency. Russian diplomat Sergey Ryabkov emphasized the group's willingness to discuss this with President-elect Trump, while India's External Affairs Minister S Jaishankar stated that India has no interest in de-dollarization, given its reliance on the US as a major trading partner. South Africa also refuted claims of a new BRICS currency, asserting that discussions focus on trading with national currencies among member states.
Elon Musk's SpaceX utilizes stablecoins to mitigate foreign exchange risks associated with payments from customers in various countries for its Starlink service. Venture capitalist Chamath Palihapitiya highlighted that this strategy allows SpaceX to avoid the complexities of currency conversion and wire transfers. He also noted that stablecoin providers are emerging as significant competitors to traditional banks and payment systems, potentially reducing transaction costs and enhancing global GDP.
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