Former US President Donald Trump holds a campaign rally at the PPG Paints Arena on November 4, 2024 in Pittsburgh, Pennsylvania. (Photo by Chip Somodevilla/Getty Images) Chinese equities rose as the authorities were said to be planning to cut taxes for home purchases to help revive a moribund housing market. US stock futures were little changed after the S&P 500 Index gained for a fifth day Monday. Bitcoin’s record-breaking rally took the digital asset past $89,000.
Investors in Asia are digesting Beijing’s stimulus package announced Friday, which relieved some of the debt burden on local governments but lacked the sweeping fiscal support many investors had hoped for. Chinese data published Monday showed that credit expansion slowed more than economists forecast last month.
“I still think that the upcoming US policy changes are important in the short term but resolving the China issues are equally critical and both meet when analysing the potential impact of US tariffs on China,” said Rajeev De Mello, chief investment officer at Gama Asset Management.
Treasuries dropped in Asia after being closed worldwide on Monday for a US holiday. The 10-year yield climbed three basis points to 4.33%. The Bloomberg Dollar Spot Index ticked higher for a third day after jumping 0.5% on Monday. Oil was little changed following its biggest decline in two week
The S&P 500 closed 0.1% higher on Monday, hovering near the 6,000 mark and notching its 51st record this year. The Dow Jones Industrial Average gained 0.7%.
The next major item on the agenda looks to be US inflation figures due Wednesday. The core consumer price index, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared with September’s readings.
Japanese Prime Minister Shigeru Ishiba on Monday pledged more than $65-billion of support for the nation’s semiconductor and artificial intelligence sector over the next decade. He was speaking at a press briefing after winning a vote in parliament to stay on as premier.
The prime minister said he wanted to spread positive examples of regional revitalization like TSMC’s chip plant in Kumamoto across the nation, and hoped aid for the sector would serve as a catalyst to generate public and private investment of more than ¥50 trillion ($325 billion) over the next 10 years. The semiconductor company Renesas Electronics Corp. shares jump at the open.
Trump rally
US stocks may rally more into year-end following Trump’s presidential election victory than they did when he won the presidency eight years ago, according to JPMorgan Chase & Co.
“I expect 2024 returns to be larger than 2016,” Andrew Tyler, the bank’s head of US market intelligence, wrote in a note to clients. A big advantage for the S&P 500 is weakness outside the US, with China, the UK, EU, Canada and Mexico all experiencing softer growth than they did back then.
The “animal spirits” being set loose by the economic policies of President-elect Trump will send the S&P 500 to 10,000 by the end of the decade, according to veteran strategist Ed Yardeni.
His bullish prediction, which would represent a 66% surge by 2030, is another sign that Wall Street is growing increasingly optimistic about stock markets in the wake of the US election. Yardeni lifted year-end targets to 6,100 for 2024, 7,000 for 2025 and 8,000 for 2026.