Traders work on the trading floor of the New York Stock Exchange (NYSE) on December 1, 2023 in New York City, United States.
Brendan McDermid | Reuters
This report comes from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Asia’s top markets
Japan is expected to be Asia’s best-performing market by the end of 2023, with the country’s Nikkei 225 index up nearly 28% so far this year. Currently, the index has reached its highest level since 1989, when Japan experienced a real estate and stock market bubble. This time around, however, things look structurally different. Corporate reforms in the stock market, increased foreign investment, and real wage growth in Japan.
Xiaomi enters electric vehicle market
Chinese consumer electronics company Xiaomi has released an electric car, the Mi SU7, which will be its first product to enter the Chinese electric car market dominated by Tesla and BYD. Millet CEO Lei Jun said The car is “under trial production and will hit the domestic market in a few months” and “the price has not yet been finalized.”
the most magnificent place
Among 300 investors, traders and fund managers surveyed in CNBC’s Delivery Alpha stock survey, Microsoft was the favorite among the “Magnificent 7” tech stocks, with 44% saying they would pick the stock first . More than three-quarters of respondents also believe that “Magnificent 7” stocks will continue to outperform the other 493 S&P 500 stocks through 2024.
(PRO) Cautious on European stocks
European Stoke 600 This year’s increase is more than 12%, which is close to a record high. But fund managers are cautious about 2024.This is according to a recent survey Bank of America Sixty-five percent of respondents, who manage a total of $691 billion in assets, believe European stock markets will fall in the near future.
bottom line
this S&P 500 IndexVery close to all time highs. The index rose 0.04% yesterday to close at 4,783.35 points, only about 10 points away from the record closing point of 4,796.56 points.
But another way to think about it is that investors are nervous about breaking through this barrier. By all accounts, the 0.04% gain is negligible. It would be fairer to say that the S&P was unchanged yesterday.
This feeling of panic extends to Nasdaq Index, dropped slightly, down 0.03%.only Dow Jones Industrial AverageIt rose 0.14%, an increase of more than 10 basis points.
Perhaps investors have realized that the S&P is overvalued, with the S&P index up 26% year to date. Scott Train, FuGuo bankThe S&P is trading above its fair value, a senior global market strategist told clients.
Adam Sarhan, chief executive of 50 Park Investments, said that while “every market in the world has the potential to fall,” the market “refuses to fall in a meaningful way.” This shows that the market is “extremely resilient” and that “the bulls remain clearly in control.”
With just one trading day left in 2023 and the S&P just shy of a peak, all bulls need is a gentle push forward to end the year with a bang.
This would be the best cap of the year, with the S&P incredibly close to a record despite the ongoing war in Russia and Ukraine, facing a banking crisis, OPEC+ oil supply cuts, and 10-year Treasury yields hitting all-time highs Record closing price. 5%, Israel-Hamas war—and other geopolitical and economic risks.
In this newsletter, which will be published on Tuesday, January 2, 2024, we’ll break down what went right and what went wrong based on whether the S&P Index succeeds in delivering one final gift to investors in 2023.
Happy New Year in advance and may you and your loved ones have a safe, prosperous and healthy 2024. Thanks to CNBC Daily Open for a great first year.
Svlook
