FUNDAMENTAL REVIEW FOR THE WEEK (25 - 29 November 2024)

Wall Street starts the new week on a positive note, as investors are positively assessing the possible appointment of Scott Bessent as US Secretary of the Treasury. Also, among other reasons for the growth of the stock section and "risks" in general - a relative geopolitical "détente" against the backdrop of the approaching agreement between Israel and Lebanon on a ceasefire.

Separately, it is worth noting that the current week will be shortened due to the holiday on Thursday in the US (Thanksgiving), which will lead to a decrease in liquidity. Large capital will rebalance on Wednesday before the pause, plus the main statistical data on the markets will fall in the middle of the week.

The Federal Reserve (FRS) minutes will be published on Tuesday evening. Powell's latest press conference did not give clear signals about the Fed's future actions, but after the release of subsequent strong data on the US, the rhetoric on the already outdated report is unlikely to be noticeable.

Wednesday will be a key day with important data releases, including US inflation data from the Russian Federation, which will impact expectations for the Fed’s rate decision on December 18. Focus will also be on jobless claims and third-quarter GDP.

Despite the traditional slowdown on the Friday after Thanksgiving, two important reports could impact the FX market, including Tokyo inflation and Eurozone inflation data due out on Friday.

In terms of individual stories, Italian banking giant UniCredit (BIT:CRDI) stands out. It has announced a surprise €10 billion offer to buy Banco BPM (BIT:BAMI). The combination could significantly strengthen UniCredit’s position in the European banking market. The bank is also considering a deal with Commerzbank (ETR:CBKG), although it has not yet received approval from the German government.