Piazza Affari, the Milan Stock Exchange, reopened this morning after a three-day closure, with a 0.70% increase in stocks. As the year comes to a close, the Milan index is up almost 12%, outperforming Frankfurt and Madrid but lagging behind London and Paris. In the United States, futures suggest a slight decline at the opening, with the Nasdaq showing a 2.3% increase this week and a 33% increase for the year, driven by companies like Nvidia. Nvidia recently entered into new financing for xAi, Elon Musk’s artificial intelligence company, now valued at $45 billion.
The Santa Claus Rally, a market phenomenon characterized by an acceleration in stock prices towards the end of the year, seems to be in effect as we approach the final days of 2024. The Nasdaq’s strong performance this week reflects this trend. However, despite the overall positive momentum, some European markets like London and Paris have experienced declines, with Paris showing a negative 3% performance for the year. In the US, futures indicate a slight decrease at the opening, with the S&P 500 future down 0.30%.
One country that has been in the spotlight recently is Japan, where the new government has introduced an expansive budget focusing on welfare and defense spending. The Tokyo Stock Exchange reacted positively to this news, with stocks rising by 1.77%. Additionally, there has been a notable increase in gas prices, with Ttf gas in Amsterdam trading above 47 euros per megawatt-hour, up 3% today and 17% since mid-December. This increase in gas prices could have implications for various industries and markets globally.
The technology sector, represented by the Nasdaq, has been a standout performer this year, with a 33% increase driven by companies like Nvidia. Nvidia’s recent involvement in financing xAi, Elon Musk’s AI company, has attracted attention and contributed to its market value of $45 billion. As we enter the final days of the year, the Santa Claus Rally may continue to influence stock market performance, with investors looking for opportunities to capitalize on year-end trends.
Despite some market declines in European markets like London and Paris, the Milan Stock Exchange has seen a strong performance, with nearly a 12% increase for the year. The Santa Claus Rally, a seasonal market trend, may be driving this positive momentum as we approach the end of the year. In the United States, futures suggest a slight decline in stock prices at the opening, but the Nasdaq’s strong performance this week reflects the overall positive trend in the market. Additionally, Japan’s expansive budget and rising gas prices are factors to watch for potential impacts on global markets.
