MARKET WRAPS
Stocks:
European stocks were higher on Wednesday with the deceleration in U.S. inflation data still supporting sentiment.
Investors have piled into stocks primarily on hopes that with inflation falling back near the Federal Reserve's 2% target, the central bank will start reducing borrowing costs by the spring of 2024, while the U.S. economy avoids a recession.
London's FTSE100 gained on improved risk appetite as markets expect a Bank of England rate cut in the first half of 2024. Markets fully price in a rate cut in May, Refinitiv data showed.
Also, data from China showed a jump in industrial profit for November. Chinese industrial profits rose 29.5% from a year earlier -a sign that the government's stimulus efforts are helping the country's economy.
U.S. Markets:
Stock futures were muted after the S&P 500 finished higher Tuesday and just 0.45% below its record close of 4,796.56 hit Jan. 3, 2022.
Stocks to Watch
Apple was slightly lower in premarket trading. Shares fell Tuesday for a fourth-straight session after the Biden administration declined to overturn a recent ruling that bans Apple from selling several models of the Apple Watch in the U.S. because of a patent-infringement issue.
Intel extended gains, rising 0.6% in premarket trading, after jumping 5.2% on Tuesday and closing as the best performer in the S&P 500. The company said it would invest $25 billion in Israel to expand its wafer fabrication site after receiving $3.2 billion from the Israeli government.
Energy:
Oil prices edged lower with trading muted through the festive period.
Major shipping firms including Maersk and MSC are returning to shipping routes through the Red Sea, despite the ongoing fighting in the Middle East. Prices climbed on Tuesday over worries that exports through the region would be constrained by the hostilities.
Metals:
Metal prices were rising, with increasing Chinese earnings helping to boost prices in muted trading.
Meanwhile, worries over the wider global economy helped boost gold prices, given its role as a safe-haven asset.
EMEA HEADLINES
AstraZeneca to Buy Gracell Biotechnologies for $1.2 Billion
AstraZeneca has agreed to buy Gracell Biotechnologies for a transaction value of $1.2 billion, as part of the former's efforts to grow its cell therapies business.
The upfront cash portion of the deal is $1.0 billion, a 62.0% premium to Gracell's last closing price for its American depository shares of $6.19, AstraZeneca said in a statement Tuesday.
Why Can't Italy's Economy Get Into Gear? Consider the Taxi Line
MILAN-Finding a taxi in Italy's financial capital when it is raining involves long lines and patience. During trade fairs and fashion shows it is even harder: Demand surges but the number of taxis stays the same.
Even on sunny days, there are lines of suitcase-laden travelers searching forlornly for a taxi at airports and train stations around Italy. Many locals don't even bother trying.
Israel Widens Discussions on Egyptian Peace Proposal
Israel's war cabinet took an Egyptian proposal to end the war with Hamas to a wider group of ministers as domestic pressure grows to secure the release of hostages and regional powers look for a solution to end the fighting in Gaza.
The planned presentation to the 14-member security cabinet on Tuesday night came alongside a broader briefing to the group on hostage-release efforts and other issues related to the war's progress, according to a person familiar with the meeting's agenda.
Jailed Opposition Leader Alexei Navalny Says He's Fine After Weeks Missing
Jailed Russian opposition leader Alexei Navalny resurfaced on social media Tuesday, telling his supporters not to worry about him a day after his associates confirmed he has been traced to a remote penal colony in Russia's Far North.
"I am fine," Navalny said in his first comments since his disappearance almost three weeks ago, posted via his allies on the social-media platform X. "Thanks again to everyone for your support."
GLOBAL NEWS
How Can Spending Be Up When People Feel Down?
According to the Misery Index, Americans shouldn't be all that miserable. But they might only recently have started to catch on.
Invented by the economist Arthur Okun, the Misery Index is the simple summing of the unemployment rate and the inflation rate. It first rose to prominence in the 1976 presidential election, when Jimmy Carter highlighted its high level in his campaign to unseat President Gerald Ford. This came back to bite him: When President Carter was running for re-election against Ronald Reagan in 1980, the index was even higher.
How China Manages Its Currency-and Why That Matters
China's approach to its currency is a mix of bold ambition and fear of dollar strength.
The yuan has lost more than 3% of its value against the greenback this year and was doing even worse before the dollar slipped against most global currencies in November. The yuan traded around 16-year lows against the dollar in September. A dollar now buys around 7.15 yuan.
Joe Lieberman's Campaign for Third-Party Ticket Draws Ire of Democrats-Again
For decades, Joe Lieberman has been sticking his finger in the eye of the Democratic Party. But that is not, the former Connecticut senator vows, what he is up to now.
"Right now, looking at the polling, it's not No Labels that's going to re-elect Donald Trump," Lieberman said, unwrapping a cough drop at his desk in his Manhattan law office on a chilly recent morning. "Right now, it looks like it's Joe Biden who's going to re-elect Donald Trump."
Write to ina.kreutz@wsj.com
Write to us at newsletters@dowjones.com
We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
12-27-23 0601ET
