Live Stock Market Blog – December 26, 2022 – Business AM

17.30 – Tank builder Rheinmetall’s big exhibition winner in 2022

With a price increase of 123 percent this year, the German tank builder Rheinmetall is the absolute star of the Stoxx 600, the stock market index of 600 largest European shares. This is evident from a comparison of Economic Daily. The Stoxx 600 fell 13 percent in the same period.

Shortly after the start of the war in Ukraine, defense stocks were labeled as interesting investments. Dassault, the maker of military aircraft, is up nearly 70 percent this year.

16.14 – Crash FTX leads to significantly lower liquidity on the Bitcoin market

The discovery of the scam on the crypto platform FTX, which used billions of dollars in customer funds to trade through its sister company Alameda, led to the implosion not only of FTX itself, but also of trading volumes on the Bitcoin market. This is evident from an indicator from the analysis agency Kaiko.

After all, Alameda was a major player in the Bitcoin trading market. When the trading house was shut down like FTX itself, liquidity in the BTC market took a deep dive.

15.38 – Stock market strategist Saxo: “All roads lead to higher inflation and higher interest rates”

Peter Garnry, the head of equity strategy at Saxo Bank, calls 2022 “the most profound and crazy year” of his 12-year career at the bank. According to him, the almost-past year will go down in the history books as the year when globalization came into being bipolar worldwith the US and Europe on one side and China and Russia on the other.

“The bipolar world will kill the casual just-in-time concept and create more buffers and fragmented supply chains to increase resilience. It is inflationary“, he writes.

“All roads lead to higher inflation and therefore higher interest rates. The market just doesn’t want to see it yet, whatever the intent is for one big market surprise in 2023.”

13.28 – The agenda for a quiet stock exchange week

It looks set to be a quiet week, with the major European and American stock markets closed until Boxing Day today. There will be trading in Europe and the USA from Tuesday to Friday. London doesn’t start again until Wednesday.

  • on Tuesday there are Japanese retail sales and Case Shiller publishes home prices for major US cities.
  • on Wednesday there is more news on the US housing market in the form of weekly mortgage applications and upcoming home sales.
  • Thursday is there in the US than weekly aid applications and US oil stocks. This latest number comes a day later than usual because Wall Street is closed on Monday.
  • on Friday, the last trading day of 2022, the Dutch Central Bureau of Statistics will publish a series of figures: retail sales, producer prices, producer confidence and the monthly economic report. In the US, the Chicago PMI index is then on the agenda.
  • In China, Beijing publishes on Saturday the official purchasing managers’ index, as always at the end of the month.

12.41 – “Inflation will soon cool down”

VOKA economist Bart Van Craeynest makes 5 predictions about the economy in 2023. Based on commodity futures prices, he is optimistic about a relatively quick cooling of inflation. Read here

12.10 – Asian stock markets on the way up

In Asia, some stock markets were open and sentiment was upbeat. The Nikkei index in Tokyo rose 0.65 percent and the Nifty 50 in Mumbai, India rose 1.17 percent. In China, the Shanghai Composite closed 0.7 percent higher.

11.01 – More interest rate increases on the way

Investors should not hope too much for a quick end to interest rate hikes. In newspaper interviews, ECB leaders Isabel Schnabel and Klaas Knot hint at further rate hikes in the first half of 2023. Read more

Klaas Knot / Isabel Schnabel – Getty Images

09.00 – Day off for European and American stock exchanges

The Euronext exchanges, the London Stock Exchange and the US markets will remain closed on Boxing Day. Nevertheless, we keep an eye on today’s economic news through this abbreviated blog.

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