Good morning! Here’s what you need to know in markets on Thursday.
Putin Speaks. Russian President Vladimir Putin is giving a big press conference, addressing issues like the slowdown in the economy and the collapse of the ruble. “Under the most negative external economic scenario, this situation can last two years,” he said. He insisted that “growth is inevitable” and expressed confidence that Russia could dig out of the crisis.
The Ruble Is All Over The Place. The Russian currency initially fell as Putin began speaking, but then recovered those losses.
Swtizerland’s Central Bank Brings In Negative Interest Rates. The Swiss National Bank just brought in a -0.25% deposit rate. The SNB follows a policy of pegging the Swiss Franc to the euro, and with the euro depreciating, it must cut rates to follow the decline.
German Business Confidence Improves. Germany’s IFO index ticked up to 105.5, closely in line with expectations. Last month, the current business climate was at 104.7, where 100 represents the long-term average. “[T]he IFO survey is telling a story of abating recession risks, but also that growth will remain weak in the near term,” Pantheon Macroeconomics’ Claus Vistesen said.
Eurozone Construction Is Climbing. Construction output in the eurozone rose 1.4% in the year to October and 1.3% from September alone. Construction output was down 1.7% on the year in September. “In one line: Signs of stabilisation,” Vistesen said.
Chinese Property Prices Fall For The 3rd Month. Reuters said property prices fell 3.7% in November from the same period last year, across 70 Chinese cities. That’s the fastest drop on record for the country. In October, prices fell 2.6%.
Oracle Is Surging. The software giant reported sales and earnings that beat expectations. Shares are up 5% in premarket trading.
Markets Are Surging. World markets are in the green following Wednesday’s post-FOMC surge. US futures are way up, with Dow futures up 178 points and S&P futures up 21 points. In Europe, Britain’s FTSE 100 is up 0.9%, France’s CAC 40 is up 2.4%, and Germany’s DAX is up 1.9%. In Asia, Japan’s Nikkei surged 2.3% and Hong Kong’s Hang Seng jumped 1.0%.
Tumbling Oil Prices Pushed Chevron To Cancel Arctic Drilling. Chevron Corp. is putting a plan to drill for oil in the Beaufort Sea in Canada’s Arctic on hold indefinitely because of what it called “economic uncertainty in the industry” amid falling oil prices.
US Authorities Say North Korea Did Hack Sony. US officials believe North Korea is “centrally involved” in hacking Sony Pictures, reports The New York Times.
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