[개장] New York stock market, Trump rally continues…Tesla up 8%

(Source=finviz)

[알파경제=박남숙 기자] ◇ The New York stock market continued the ‘Trump rally’. The New York Stock Exchange’s three major indices set new intraday highs for two consecutive trading days.

On the New York Stock Exchange, the Dow Jones index ended trading at 44,293.13, up 0.69% from the previous trading day. The Standard & Poor’s (S&P) 500 and Nasdaq index rose 0.1% and 0.06%, respectively, to 6,001.35 and 19,298.76.

In particular, financial stocks, which are considered beneficiaries of the Trump administration’s deregulation, showed strong performance, and the Dow exceeded the 44,000 mark for the first time in history. JP Morgan Chase and Goldman Sachs rose 0.97% and 2.2%, respectively, while Bank of America and Citigroup rose 2.11% and 1.70%.

Tesla’s stock price soared more than 40% after Trump’s election on the 5th, rising 8.96% compared to the previous day. Bank of America (BOA) last week raised its Tesla price target from $265 to $350, saying, “It is difficult to determine how the increasingly close relationship between Musk and President Trump could benefit Tesla, but it will be something we will monitor closely.” “There is a need,” he analyzed.

◇ European stock markets showed a strong performance for the first time in a while after Trump was elected.

The DAX index of the Frankfurt stock market in Germany closed at 19,448.60, up 1.21% from the previous day, and the CAC40 index of the Paris stock market in France closed at 7,426.88, up 1.20% from the previous day. The London stock market’s FTSE 100 index also closed at 8125.19, up 0.65%.

Among stocks, defense stocks showed strength, with Italy’s Leonardo rising 4%, Germany’s Rheinmetall and Sweden’s Saab rising more than 3%.

President-elect Trump is expected to reduce military and financial support to Ukraine and strongly pressure European members of NATO (North Atlantic Treaty Organization) to spend more than 2% of their gross domestic product (GDP) on defense.

In addition, Continental, a German auto parts manufacturer, showed strong performance in the third quarter and rose 10.6%. German food delivery company Delivery Hero rose 5.2% on news that it plans to list its Talabat business in the United Arab Emirates (UAE) next month.

Meanwhile, British luxury goods company Burberry fell 3.3% after Reuters reported that Italy’s Moncler was not in takeover talks.

On the 14th, the Eurozone’s third quarter GDP (confirmed) and Germany’s October inflation will be announced in Europe. On the same day, minutes showing what was discussed at the monetary policy meeting when the European Central Bank (ECB) lowered its benchmark interest rate by 0.25% last month will be released.

◇ I will also check the Asian stock markets. Asian stock markets were mixed on the 11th.

China’s Shanghai Composite Index closed at 3470.07, up 0.51% from the previous day.

On the 9th, China’s National Bureau of Statistics announced that the consumer price index (CPI) in October rose 0.3% compared to the same period last year. It was below market expectations of 0.4%, recording the lowest rise in four months. The Producer Price Index (PPI) has been declining for 25 consecutive months.

Japan’s Nikkei 225 index closed at 39,533.32, up 0.08% from the previous day.

In a summary of the minutes of last month’s monetary policy meeting released by the Bank of Japan (BOJ), the interest rate freeze was emphasized for the time being, and the dollar-yen exchange rate also rose, influenced by the weakening yen.

On this day, Prime Minister Shigeru Ishiba, leader of Japan’s ruling Liberal Democratic Party, and Yoshihiko Noda, leader of the main opposition Constitutional Democratic Party, ranked first and second in the first round of the prime minister nomination election held at the plenary session of the special session of the House of Representatives, and will hold a runoff election.

Hong Kong’s Hang Seng Index closed at 20,426.93, down 1.45%, and Taiwan’s stock index closed at 23,529.64, down 0.10% from the previous day.

◇ Let’s look at today’s main schedule. Nomus is newly listed.

Among domestic companies, Korea Zinc, Pearl Abyss, and Neowiz are announcing their performance.

It is Meat Box Global’s public offering subscription date.

◇ Check out today’s outlook and investment strategy. The early morning New York stock market continued its Trump rally.

Jo Joong-gi, a researcher at SK Securities, said, “In last week’s U.S. presidential election, the Republican Party took control of the president and the Senate, and there is a strong possibility that they will also win the House of Representatives.” “It was common for sell-ons to be strongly reflected for about a month and then come out even before the start of the term, but considering the situation where the policy drive can be strong, we cannot rule out the possibility that it will continue further,” he said.

This week, too, there is a possibility that Trump’s beneficiaries and victims will be divided, and it is expected that the stock price will continue to react violently to the formation of the narrative, such as the stock price soaring when Trump mentioned Korean shipbuilding stocks last week.

Researcher Cho Joon-ki predicted, “The US earnings season is now coming to a close, and the FOMC blackout period ends this week, and many speeches by Federal Reserve officials are scheduled, but the impact on the stock market will not be relatively large.”

As the domestic stock market is still scattered with performance announcement schedules, it is expected that a situation will develop in the short term in which supply and demand for industries and companies will be focused on ‘Trump-beneficiary stocks and good performance’.

Alpha Economy Reporter Park Nam-sook (parkns@alphabiz.co.kr)