Latest Situation in the Markets - Wednesday, December 2

Latest Situation in the Markets - Wednesday, December 2 What is the latest situation in the markets on Wednesday, December 2? Here's what you need to know about what's happening in the markets today:   1.Biden Won't Immediately Remove Customs Tariffs Over China Elected US president Joe Biden will take over in January. Biden said he would not immediately remove customs tariffs on China when he took over. This statement created the perception that trade relations between the two countries will be strained even if Donald Trump leaves the White House. Biden told the New York Times, "... I'm not going to make sudden moves, and the same is true of customs tariffs. I will not influence my options." Joe Biden announced that he will pursue policies targeting China's "abuse practices" such as "stealing intellectual property, dumping products, illegal subsidies to institutions" and "forced" technology transfers to Chinese companies "from US companies. On the other hand, Biden reiterated his willingness to rejoin the UN-backed JCPOA agreement with Iran if the agreement proves to be strictly adhered to.  

2. Salesforce Increases the Value of Slack

Salesforce, following S&P Global's $ 44 billion step for IHSMarkit, signed an agreement to buy Slack for $ 27.7 billion as the second 11-digit M&A of the week (merger & acquisition). It is said that this agreement will strengthen Salesforce's presence in the business software market. In addition, the Teams app aims to directly offer stiffer competition for Microsoft (NASDAQ: MSFT), which harms Slack's sales growth. Salesforce's biggest deal to date also has been promising Slack shareholders a level of cash that seems impossible for the past 18 months.  

3. This Week's Metals

Although the rally in the global markets made a rapid entry into December with the positive news from the coronavirus vaccine, it gradually lost its effect. Even the UK's emergency use approval for the Pfizer / BioNTech Covid-19 vaccine from the morning in Europe did not create movement in the markets, and the Stoxx 600 fell 0.3 percent. On the other hand, a low opening is expected from US stock markets. On Monday, the S&P 500 and Nasdaq Composite closed at new record levels. The Dow 30 contracts fell 106 points, while the S&P 500 and Nasdaq fell 0.2 percent. The situation is slightly different in the foreign exchange and metal markets. The weakening dollar continues to support precious and industrial metals. This week, copper hits a 7-year high, while aluminum futures hit a two-year high. On the other hand, the dollar index came very close to its lowest level in the last 30 years.  

4. Incentive Talks Restarted in the USA

The weakening in the dollar is said to be partly due to additional expansionary monetary policy and the expectation of an expansionary fiscal policy when the dove Janet Yellen took power. Janet Yellen warned that if the economy is not supported, there will be devastation. Meanwhile, the incentive package talks took place on Tuesday for the first time since the election. But Senate Leader Mitch McConnell's objection made things difficult. While Treasury Minister Mnuchin and FED Chairman Powell continue their testimony in Congress, another noteworthy development is the ADP private sector employment report for November. The report result is expected to increase 410,000 compared to October.  

5. Increase in US Crude Oil Stocks

Uncertainties regarding OPEC production policy and the increase in US crude oil stocks for three weeks in a row caused crude oil prices to decline. According to data released by the American Petroleum Institute (API), last week the country's crude oil stocks increased by over 4 million barrels. While government data is expected to be released at the usual time, OPEC is approaching the third day of negotiations on whether to increase production in January. West Texas type crude oil (WTI) fell 0.7 percent to $ 44.42, while brent oil fell 0.5 percent to $ 47.20.   Source: investing.com