The Exciting World of Finance
Bitcoin Hits a New High, and More!
Weekly weaker performance anticipated for Dax index
Happening Now: A rollercoaster ride in the financial world! Let's dive in and check out the latest buzz.
Today's Highlights
The Downturn of Dax: Kicking off the week on a somber note, Germany's Dax slipped 0.5% to 20,314 points. Traders have been hesitant to invest due to the looming interest rate decision by the US Federal Reserve this week. As speculated, the Fed is expected to cut the federal funds rate target by 25 basis points on Wednesday, with the Bank of England's interest rate decision set for Thursday. Unfortunately, economic data from China has left traders feeling less than enthusiastic—with retail sales in November only rising by 3% [1].
Vonovia Struggles: The large housing provider Vonovia saw a dip of up to 4%, temporarily, after securing a timetable for the compensation to be paid to Deutsche Wohnen shareholders. The compensation rate of 1.22 euros per share is subject to court-appointed contract auditor approval. However, analysts at Goldman Sachs maintain their "Buy" rating for Vonovia, with a price target of 46.50 euros [1].
Canal+'s Rocky Debut: French conglomerate Vivendi listed shares of three subsidiaries on the stock market on Monday. While Havas and La Hachette were well received, pay-TV channel Canal+ faced pressure in London. The first trading price was 290 pence, but the share later fell to 220 pence. Although the market capitalization would be sufficient for inclusion in the FTSE 250, it's not possible because it's a French firm [1]. Analysts believe that the inability to be included in British indices might be dampening investor demand.
Porsche SE Warns: Porsche SE came under intense pressure after issuing a profit warning on Friday evening. Analyst Daniel Schwarz from Stifel Investment Bank called it a "profit warning for the history books." The share temporarily plummeted by more than 3%. The warning is due to extraordinary impairments on the holdings in Volkswagen and sports car manufacturer Porsche AG, which are estimated at 7 to 20 billion euros for VW and 1 to 2 billion euros for Porsche AG [1].
Bitcoin Soars: Bitcoin reached an all-time high of 106,533 dollars on Monday. Some market participants believe that former U.S. President Donald Trump will establish a "strategic Bitcoin reserve" in parallel to the US strategic oil reserve [2]. However, it's important to note that there's no evidence to back up this claim. While the concept of a US strategic Bitcoin reserve has gained traction in theoretical discussions and through recent legislative action at the state level, it doesn't appear that such a reserve was established by President Donald Trump [3].
Oil Prices Drop: Brent Crude, the benchmark oil price, decreased by 0.9% to $73.84 per barrel. Traders attribute the drop to profit-taking, but the oil price remains supported by expectations that the Federal Reserve will lower interest rates this week and U.S. sanctions against Russian and Iranian oil will follow [1].
[1]: Adapted from base article[2]: Incorporated enrichment data about Bitcoin's all-time high and future speculations[3]: Incorporated enrichment data about US Strategic Bitcoin Reserve to provide clarification[4]: Additional context about the US Strategic Bitcoin Reserve's development provided when relevant.
- Amidst the ongoing fluctuations, the German Dax slipped 0.5% to 20,314 points on Monday, causing hesitation among traders due to the approaching interest rate decision by the US Federal Reserve.
- In the housing sector, Vonovia experienced a temporary dip of up to 4% after finalizing a timetable for compensation to Deutsche Wohnen shareholders, a decision that awaits court-appointed contract auditor approval.
- The debut of Canal+ on the stock market faced pressure, with the share price dropping from an initial 290 pence to 220 pence, potentially due to the inability of French firms to be included in British indices.
- Porsche SE issued a significant profit warning on Friday, attributed to extraordinary impairments on holdings in Volkswagen and Porsche AG, estimated to be between 7 to 20 billion euros for VW and 1 to 2 billion euros for Porsche AG.
- Bitcoin reached a record high of 106,533 dollars on Monday, prompting discussions about the possibility of a "strategic Bitcoin reserve" being established by the US government, although there's currently no evidence to support this claim.
