Stock Market Update for June 20th, 2024

Global Stock Markets

Nvidia Pushes American Indexes

American markets opened higher as Nvidia’s ongoing rally significantly bolstered market sentiment. Investors are keenly awaiting the release of U.S. weekly jobless claims numbers and May housing data, which are expected to provide insights into the health of the labor market and the real estate sector.

In addition to economic data, market participants are closely monitoring remarks from key Federal Reserve officials. Comments from Neel Kashkari, President of the Minneapolis Fed, Thomas Barkin, President of the Richmond Fed, and Mary Daly, President of the San Francisco Fed, are anticipated to offer guidance on the Fed’s monetary policy outlook and potential future interest rate movements.

European and Swiss Markets Rise with Tech and Real Estate Leading

European shares saw an uptick, driven by significant gains in technology and real estate stocks. The tech sector’s strength reflects a broader global trend of investor enthusiasm for technology companies, while the real estate sector’s performance suggests continued confidence in the property market despite broader economic uncertainties. Swiss equities also benefited from positive momentum as the Swiss National Bank’s decision to further loosen monetary policy provided an additional boost to investor sentiment, fostering a favorable environment for growth.

Nikkei Rebounds as Investors Capitalize on Dips

In Asia, Japan’s Nikkei index reversed its early losses to close higher. The market turnaround was largely due to investors seizing buying opportunities following the initial dip, with chipmakers at the forefront of the recovery. The strong performance of chipmakers underscores the global demand for semiconductor technology, which remains robust despite various market fluctuations.

Canadian Stocks Edge Up with Oil and Gold Prices

Canadian stocks showed a modest rise, supported by rising oil and gold prices. The appreciation in commodity prices is beneficial for Canada’s resource-heavy economy, particularly its energy and mining sectors, which play a crucial role in the country’s economic performance.

U.S. Dollar Strengthens Against Major Currencies

The U.S. dollar saw an increase in value against its major peers, reflecting a stronger demand for the currency. This movement is influenced by a variety of factors, including investor anticipation of upcoming economic data releases, expectations of Federal Reserve policy adjustments, and broader market trends.

Corporate Stock News

• Air France-KLM: CEO urges Aeroports de Paris to improve Charles de Gaulle airport due to jetway shortages causing parking issues and higher costs.
• Australian Government: Granted Equinor and Oceanex Energy a license to study wind farm feasibility off the east coast to boost clean energy projects.
• Thales: Signed three deals with Ukraine, including plans to create a joint venture to enhance military gear delivery.
• WestJet Airlines: Union rescinds strike notice, working to resume normal operations as both parties return to the bargaining table.
• Accenture Plc: Projected annual revenue growth largely above estimates, anticipating 1.5%-2.5% growth with Q3 revenue at $16.47 billion and profit down to $1.93 billion from $2.01 billion last year.
• Honeywell International Inc: To acquire CAES Systems for $1.9 billion in cash.
• Carlyle Group Inc: Buying assets from Energean in Egypt, Italy, and Croatia for up to $945 million.
• Carlyle Group Inc & KKR & Co Inc: Top bidders for Discover Financial’s $10 billion U.S. student loan portfolio.
• Advanced Micro Devices Inc: Investigating a data breach by “Intelbroker”.
• Amazon.com Inc: Human rights commission investigating labor law violations at an Indian warehouse; plans to invest 10 billion euros in Germany.
• Apple Inc: Discontinuing its BNPL service; launching a new service via third parties like Affirm.
• Boeing Co: Relatives of 737 MAX crash victims seek fines and criminal prosecution against the company.
• Citigroup Inc: Fined nearly 13 million euros by Germany’s bank regulator for trading system lapses; seeks to expand European business.
• Corpay Inc: Acquiring GPS Capital Markets for $725 million.
• Dell Technologies Inc: Assembling racks for xAI’s supercomputer.
• Eli Lilly and Co: Suing entities for selling unauthorized tirzepatide products.
• General Electric Co: Supply chain challenges expected to continue into next year despite Boeing’s production slowdown.
• Hamilton Lane Inc: Raised $5.6 billion for Hamilton Lane Secondary Fund VI.
• Hewlett Packard Enterprise Co & Juniper Networks Inc: UK’s competition regulator investigating HPE’s planned $14 billion acquisition of Juniper Networks.
• Vanda Pharmaceuticals Inc: Rejected takeover offers from Cycle Pharmaceutical and Future Pak.