- Asian Stocks Slip, Dollar Steadies Before US CPI: Markets Wrap
Asian shares retreated as traders await key US inflation data for clues on whether the Federal Reserve will cut
or hold interest rates next week. The dollar steadied after a three-day gain. Stocks in Hong Kong and
mainland China fluctuated as an annual economic meeting begins in Beijing on Wednesday, while those in
Taiwan and Australia dropped. South Korean equities rose for a second session, continuing a recovery after
last week’s short-lived martial law event that thrust the country into political turmoil. A Bloomberg index of
dollar strength was steady in the runup to American consumer price index data. S&P 500 contracts were little
changed on Wednesday. Wednesday’s CPI will offer Fed officials another look at inflation ahead of their next
meeting. Swap trading projects about an 85% chance of a quarter-point rate reduction this month.
Meanwhile, China’s two-day Central Economic Work Conference is expected to map out policies for next
year, with traders emboldened by stimulus signals from top leaders. - Dow falls more than 150 points to notch four losing days as year-end rally takes a breather
Stocks fell on Tuesday as traders digested a year-end rally to record levels. They also awaited new U.S.
inflation data set for release this week. The S&P 500 lost 0.3% to end at 6,034.91, and the Nasdaq
Composite dropped 0.25% to 19,687.24. Both indexes booked back-to-back losses. The Dow Jones Industrial
Average declined for a fourth day, sliding 154.10 points, or 0.35%, to 44,247.83. Oracle shares slumped 6.7%
after the database software company posted fiscal second-quarter results that missed Wall Street’s
estimates. The stock has jumped around 68% this year. - Oil prices edge up on demand hopes from China’s looser monetary policy
Oil prices rose slightly early on Wednesday, with market participants expecting to see demand rising in China
next year after Beijing announced a looser monetary policy to stimulate economic growth. Brent crude
futures gained 10 cents, or 0.14%, to $72.29 a barrel by 0131 GMT, while U.S. West Texas Intermediate crude
futures rose 9 cents, or 0.13%, to $68.68. China said on Monday it would adopt appropriately loose monetary
policy in 2025 as Beijing tries to spur its economy with the first easing of its stance in 14 years. Chinese crude
imports also grew annually for the first time in seven months in November, up more than 14% from a year
earlier. - Gold touches two-week peak; U.S. inflation data in focus
Gold prices scaled a two-week peak on Wednesday, supported by escalating geopolitical tensions and
expectations of another rate cut by the U.S. Federal Reserve next week, and ahead of the closely watched
U.S. inflation report later in the day. Spot gold was up 0.2% at $2,698.47 per ounce, as of 0253 GMT, and hit
its highest since Nov. 25. U.S. gold futures rose 0.6% to $2,734.70. Investors’ focus is on the U.S. Consumer
Price Index (CPI), which is expected to have risen by 0.3% in November. The data could help set expectations
for the Fed’s 2025 policy. - New RBI governor Sanjay Malhotra warned of killing golden goose
Sanjay Malhotra will take over as the Reserve Bank of India’s new governor at a tumultuous time for the
economy in the face of slowing growth, sticky inflation and a depreciating rupee. Some experts say his
appointment could represent a shift towards a more dovish monetary policy and strengthens expectations of
rate cuts early next year. - China ramps up Wall Street meetings as Trump inauguration looms
Chinese Vice Premier He Lifeng has met with several U.S. finance executives in the last month as Beijing seeks
to build relationships ahead of President-elect Donald Trump’s planned tariffs on China. He Lifeng is one of
China’s four vice premiers, and heads the ruling Chinese Communist Party’s economic and finance
committee. The Chinese are seeking all possible avenues to access those now ascending to power in
Washington. The Trump Team, said Peter Alexander, founder of Shanghai-based consulting firm Z-Ben
Advisors. - The CPI report Wednesday is expected to show that progress on inflation has hit a wall
The consumer price index is expected to show a 2.7% 12-month inflation rate for November, up one-tenth of
a percentage point from October. Core CPI is forecast at 3.3%, or unchanged from October. Traders in futures
markets nevertheless are placing huge odds that policymakers again will cut their benchmark short-term
borrowing rate by a quarter of a percentage point. The report will be released Wednesday at 8:30 a.m. ET. - US Steel drops as Biden plans to block sale to Nippon Steel
President Joe Biden plans to formally block the US$14.1 billion sale of United States Steel to Nippon Steel on
national security grounds once the deal is referred back to him later this month, sources familiar with the
matter said. The Committee on Foreign Investment in the United States (CFIUS) panel, which has been
reviewing the proposed takeover for much of this year, must refer its decision to Biden by Dec 22 or 23, said
the sources, who asked not to be identified discussing a confidential process. It’s not clear exactly what the
CFIUS review will say. However, any referral to the president suggests at least one member of the panel sees
the deal as posing a risk. Nippon Steel and US Steel are poised to pursue litigation over the process if Biden
decides to block the merger, some of the sources said. - Alphabet shares rallied 5.6% as analysts applauded the Google parent’s announcement of a major
development in quantum computing through the use of its Willow quantum chip
The company’s quantum computer needs just five minutes to solve a problem that would take
supercomputers around 10 septillion years, Alphabet announced Monday, though it did not disclose any
actual uses for all that theoretical power. That didn’t stop analysts from taking a bullish view of the
development, with many singling out Willow as a potential long-term catalyst. While quantum is still years
from broad commercial adoption, the breakthrough reinforces Google’s technology leadership, wrote Colin
Sebastian, an analyst at Baird who has an outperform rating on the stock. Willow marks an important step
toward the eventual commercialization of quantum computing, something that could have significant
implications for many industries, as well as data and national security. Bloomberg Intelligence wrote that
quantum advancements are likely to aid with both AI training and inferencing at Alphabet, while the
company’s chip advantage is likely to expand versus other large tech companies. Other quantum-related
stocks also moved in the wake of Alphabet’s announcement. Rigetti Computing Inc. jumped 45% while D
Wave Quantum Inc. rose as much as 16% before paring much of that advance. - Boeing
Boeing shares rose 4.5% after Reuters reported that the plane manufacturer restarted production of its 737
MAX jetliner last week, citing three unidentified people familiar with the matter. The restart comes about a
month after the end of a seven-week strike by 33,000 factory workers. Boeing declined to comment to
Reuters. - Super Micro Shares Drop as Nasdaq Grants Filing Extension, Leadership Shake-Up Announced
Even while CEO Charles Liang expressed hope that Super Micro Computer’s (NASDAQ:SMCI) stock will
continue listed on the Nasdaq, shares of the business plummeted more than 5% Tuesday. On Friday, Nasdaq
wrote the business a letter extending an extension until February 25, 2025, to file its fiscal 2024 annual
report on Form 10-K, its quarterly report on Form 10-K for the period ending Sept. 30, 2024, and any other
required filings. Super Micro assured its common stock remains listed during the extension period and that it
expects to reach the deadline. An independent special committee assigned by Super Micro earlier in
December turned uncovered no evidence of board or audit committee misdemeanor by the business. But the
committee advised changes in leadership, which resulted in the nomination of Kenneth Cheungformerly vice
president of financeas the new chief accounting officer. The firm also intends to name general counsel, chief
compliance officer, and new chief financial officer. - General Motors
General Motors shares gained 2.2% in afterhours trading after saying it will stop funding the robotaxi
development of its Cruise unit and combine both Cruise and GM technical teams into a single effort for
autonomous driving. GM will work with the Cruise leadership team to restructure and refocus Cruise’s
operations. GM sees restructuring to lower spending by more than $1 billion annually after the proposed
plan is completed. - Oracle shares suffer steepest drop of 2024 after earnings miss
Oracle shares dropped almost 7%, their steepest decline in a year, following the database software vendor’s
disappointing earnings report. The stock’s worst day of 2024 had been a 5.4% decline in May. The stock’s worst day of 2024 had been a 5.4% decline in May. The shares are still up about 69% for the year, which would be the best annual performance since the dot-com boom of 1999. After the close Monday, Oracle reported adjusted earnings per share for the fiscal second quarter of
$1.47, trailing analysts’ average estimate by a penny, according to LSEG. Revenue rose 9% from a year earlier
to $14.06 billion, missing the $14.1 billion average estimate. Net income increased 26% to $3.15 billion, or
$1.10 a share, from $2.5 billion, or 89 cents a share, a year earlier. Revenue in Oracle’s cloud services
business jumped 12% from a year earlier to $10.81 billion, accounting for 77% of total revenue. - Kroger’s $24.6 Billion Albertsons Deal Blocked by Judges
A federal judge blocked Kroger Co.’s $24.6 billion acquisition of Albertsons Cos., finding the takeover would
lessen competition for US grocery shoppers, in a ruling that marks a likely death knell for the deal. In a
decision filed Tuesday, US District Judge Adrienne Nelson in Oregon found in favor of the US Federal Trade
Commission. Just over an hour later, a Washington judge in Seattle sided with the state attorney general and
blocked the deal in that state. The FTC had argued that the proposed tie-up violates US antitrust law and that
a divestiture of hundreds of stores to C&S Wholesale Grocers Inc. wouldn’t do enough to replace the lost
competition.
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