New York (AFP) – Global stock markets were mostly soft on Monday as investors avoided risks ahead of this week’s Federal Reserve meeting, which may yield clues to the direction of interest rates in coming months. A bid by Paramount for Warner Bros. Discovery, meanwhile, brought the tech and entertainment sectors to life, as the market braced for a bidding war with Netflix.
A monetary easing at Wednesday’s Fed meeting is fully priced into stock prices, analysts said, but investors will scour the central bank’s statement and news conference for insights into how many rate reductions might be on the cards next year, against a backdrop of stubborn inflationary pressures. “Investors have priced in that rate cut already and now are anxiously waiting for the tone of the Fed,” said Art Hogan of B. Riley Wealth Management, who noted “a divide” among Fed policy makers that adds to uncertainty about 2026 monetary policy.
Analysts said stocks could pull back if Powell seems to close the door to further cuts next year. “Investors want Fed Chair (Jerome) Powell to at least imply that they are still open to an additional cut in January,” said Sam Stovall of CFRA Research. “They don’t want it to just be one and done.”
Frankfurt outperformed other European markets after German industrial production unexpectedly jumped in October — another sign that Europe’s crisis-wracked top economy may be turning a corner. In New York, Warner Bros. Discovery shares jumped 4.4 percent after Paramount countered last week’s Netflix bid for the company with an all-cash offer worth $108.4 billion. Netflix fell 3.4 percent faced with the big-gun competitive bid.
Paramount Skydance surged by 9.0 percent in what was seen as a relief rally after analysts had predicted last week that a Netflix/Warner linkup could pose a major threat to Paramount’s business. The hostile offer sets up a bidding war between Paramount — whose CEO is David Ellison, the son of Larry Ellison, an ally of Donald Trump — and streaming behemoth Netflix. Stock in Walt Disney — also seen in the crosshairs of a future Netflix/Warner behemoth — rose by more than two percent.
Meanwhile, Boeing advanced 2.2 percent after announcing that it completed the takeover of supplier Spirit AeroSystems, saying the move will allow for more seamless operations and enhance quality control. The deal is worth $8.3 billion, including Spirit debt assumed by Boeing. IBM climbed 0.4 percent as it unveiled a deal to purchase US data management company Confluent for $11 billion, seeking to expand its footprint into the increasingly important field of real-time data for AI.
– Key figures at around 2115 GMT –
New York – Dow: DOWN 0.5 percent at 47,739.32 (close)
New York – S&P 500 – DOWN 0.4 percent at 6,846.51 (close)
New York – Nasdaq – DOWN 0.1 percent at 23,545.90 (close)
London – FTSE 100: DOWN 0.2 percent at 9,645.09 (close)
Paris – CAC 40: DOWN 0.1 percent at 8,108.43 (close)
Frankfurt – DAX: UP 0.1 percent at 24,046.01 (close)
Tokyo – Nikkei 225: UP 0.2 percent at 50,581.94 (close)
Hong Kong – Hang Seng Index: DOWN 1.2 percent at 25,765.36 (close)
Shanghai – Composite: UP 0.5 percent at 3,924.08 (close)
Euro/dollar: DOWN at $1.1640 from $1.1642 on Friday
Pound/dollar: FLAT at $1.3328
Dollar/yen: UP at 155.86 yen from 155.33 yen
Euro/pound: DOWN at 87.34 pence from 87.35 pence
Brent North Sea Crude: DOWN 2.0 percent at $62.49 per barrel
West Texas Intermediate: DOWN 2.0 percent at $58.88 per barrel
© 2024 AFP
