Weekly Market Recap | Nov 11 – Nov 17

Key Takeaways

  1. Trump’s Economic Legacy: The economic policies implemented during Donald Trump’s presidency had a mixed impact on the US economy, with some indicators performing better than expected, while others, such as output growth and trade balance, were negatively affected.
  2. UAE Stock Market Boom: The UAE stock market has reached a major milestone, surpassing $1 trillion in value, driven by a surge in initial public offerings and strong performance of firms connected to Sheikh Tahnoon.
  3. US-Russia Trade Tensions: Russia has restricted uranium exports to the US, targeting nuclear power plants that generate 19% of America’s electricity, in response to US legislation limiting Russian uranium imports.
  4. Global Economic Shift: The US dollar has seen significant gains following Trump’s election win, driven by tax cuts and protectionism, strengthening against major currencies.
  5. Europe’s Energy Security: Despite cutting off deliveries to Austria’s OMV, Russia continues to supply natural gas to Europe, maintaining a crucial energy lifeline to the continent.

IPO’s in the week

  • Horizon Space Acquisition II Corp. has launched its initial public offering (IPO) on the Nasdaq exchange, trading under the ticker symbol HSPTU. The company is offering 6,000,000 units at $10.00 per unit, with proceeds aimed at funding its acquisition strategy. As a blank check company, Horizon Space Acquisition II Corp. seeks to acquire one or more businesses and assets through mergers, capital stock exchanges, asset acquisitions, and other structures, focusing on creating long-term value for shareholders. The IPO commenced on November 15, 2024.
  • Invizyne Technologies, Inc. (IZTC) launched its IPO on Nasdaq, offering 1,875,000 shares at $8.00 per share on November 12, 2024. Headquartered in Monrovia, California, Invizyne is a biotech company pioneering cell-free enzyme-based biomanufacturing technologies.
  • Alpha Cognition Inc. (ACOG) launched its IPO on NASDAQ Capital, offering 8,695,653 shares at $5.75 per share, raising $50 million. The biopharmaceutical company focuses on developing treatments for neurodegenerative diseases, including Alzheimer’s, with limited or no existing treatment options, effective November 12, 2024.

Markets this week

  • Gold’s appeal dims after Trump’s decisive win, removing a major political uncertainty in the world’s largest economy and dulling demand for the ultimate safe-haven investment.
  • Donald Trump’s economic report card is closely tied to the S&P 500 performance, which strategists see as Wall Street’s best hope. Analysts believe the president will avoid implementing economic plans that could negatively impact the market. According to Barclays
  • The UAE stock market has reached a significant milestone, surpassing $1 trillion in value. This achievement is largely driven by a surge in initial public offerings (IPOs) and the strong performance of firms connected to Sheikh Tahnoon, a key member of Abu Dhabi’s ruling family. The milestone reflects growing economic confidence in the nation, solidifying the UAE’s position in the global financial landscape.
  • US ETFs saw a record $913 billion influx this year, surpassing the 2021 high, driven by a resilient bull market and election enthusiasm.
  • Russia has continued to supply natural gas to Europe, despite cutting off deliveries to Austria’s OMV. The move is expected to have a limited impact on the European gas market for now, as gas flows through Ukraine and Slovakia remained uninterrupted on Saturday. This maintains a crucial energy lifeline to the continent, mitigating concerns of a broader supply disruption.
  • Hedge funds have slashed their bullish bets on gold following Donald Trump’s election win, with net-long positions dropping 11% to 197,362 as of November 12, the lowest in 14 weeks.
  • US dollar surges to highest gain in years after Trump’s election win, driven by tax cuts and protectionism, strengthening against major currencies.
  • Russia restricts uranium exports to US, targeting nuclear power plants that generate 19% of America’s electricity, in response to US legislation limiting Russian uranium imports.
  • Czech Republic boosts Russian gas imports via Slovakia, reversing earlier halt, due to high costs of alternative energy sources.
  • US money-market funds reach record $7 trillion, defying skeptics, with potential for further growth amid slower-than-expected interest rate cuts.
  • BlackRock makes high-stakes bet on private markets, becoming world’s 2nd-largest infrastructure investor, with deals and partnerships valued at billions.

Politics Weekly

  • US may let Ukraine strike Russian targets amid North Korea’s involvement, despite concerns over escalation. The Biden administration had previously authorized limited strikes near Kharkiv, but lawmakers are pushing to lift restrictions on targeting Russian territory.
  • Russia unleashes 120-missile barrage on Ukrainian energy sites, causing widespread damage and power cuts, amid uncertainty over Trump’s approach to the conflict.
  • Japan to join US forces in Northern Australia for joint military training, strengthening security ties with the US and Australia in the Indo-Pacific region.
  • US President Biden and Chinese President Xi commit to preventing AI control over nuclear arsenals, ensuring human oversight in strategic decision-making.
  • US confirms 1st case of new Mpox variant in California.
  • Chinese President Xi Jinping seeks cooperation with incoming US President Donald Trump. Xi warns against a “new Cold War” in final meeting with President Joe Biden. Key concerns include Taiwan tensions, China’s support for Russia, and US tariffs.
  • Donald Trump’s return to presidency is being welcomed by his allies in Europe, particularly in Eastern Europe, where leaders are eager to do business with him. Many view Trump as a kindred spirit and are relishing the opportunity to strengthen economic ties.
  • Canadian Prime Minister Justin Trudeau says APEC leaders are focused on navigating trade with Donald Trump’s upcoming administration. Trudeau advises emphasizing common goals, citing Canada’s experience renegotiating NAFTA during Trump’s first term.
  • Gazprom will suspend gas supplies to Austria from Saturday, OMV says. European gas prices jump to one-year high amid supply concerns. Region’s energy security worries intensify as Russia tightens grip on gas exports.
  • Hungary plans to increase its military spending to 2% of its GDP next year, aligning with NATO guidelines. This move demonstrates Hungary’s commitment to regional security and cooperation with NATO allies. As a committed NATO member, Hungary continues to develop its defense capabilities, meeting with NATO Secretary General Jens Stoltenberg to discuss preparations.
  • South Korean opposition leader Lee Jae-myung has been found guilty of violating election laws and received a suspended one-year prison sentence. This verdict may impact his political future, potentially affecting his eligibility to run for presidency. Lee plans to appeal the ruling.
  • Australia is taking steps to prevent the influence of large political donations by introducing new laws that impose donation caps and increase transparency. This move aims to avoid a US-style spiral where money heavily influences politics
  • Israel has expanded its ground operation in southern Lebanon, moving troops and tanks beyond the initial 3km territory, in an effort to intensify operations against Hezbollah. The US-led ceasefire efforts hang in the balance, contingent upon Israel’s demand to disarm and withdraw Hezbollah forces from areas near the Litani River.
  • Greek Prime Minister Alexis Tsipras emphasized the need for Europe to assert its autonomy following Donald Trump’s presidential win. Tsipras expressed concerns about Trump’s potential impact on Europe, particularly in terms of economic and political stability.

Technology Advancements this week

  • Alibaba considers issuing $5 billion in bonds, leveraging record-low Asian credit market yields.
  • Samsung announces $7 billion share buyback to boost investor confidence amid AI growth concerns, sending stock up 9%.
  • UK’s AI-driven productivity boost is 10 years away, says economist Diane Coyle, debunking hopes for a quick fix to Britain’s productivity issues.
  • Meta to appeal court rulings allowing US states and school districts to sue over alleged addictive social media apps linked to youth mental health crisis.
  • Australia to introduce laws making Big Tech liable for online safety, establishing a “duty of care” and potentially banning social media for under-16s.
  • US accuses China of massive cyber-espionage, hacking telecoms and targeting Trump, officials.
  • OpenAI’s “Operator” launches in January, automating tasks and boosting productivity by performing complex actions and web interactions, revolutionizing the way we work.
  • Startups like Science and Elon Musk’s Neuralink are developing innovative tech to restore vision in blind individuals. Advances in brain-computer interfaces, implants, and AI-powered prosthetics are driving this emerging field, offering new hope for millions.
  • Biden administration backs contentious UN cyber treaty, aiming to combat cybercrime and child exploitation, despite concerns over authoritarian misuse.

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