Before the bell: Green and Red Are the Colors of Christmas

After a tough week, gains return this morning in Asia. All eyes are on stock reactions following the adjustments to the Nasdaq 100.

The primary job of a central banker is to create stability and trust—qualities that were in short supply last week. Jerome Powell, the Chair of the U.S. Federal Reserve, cut interest rates but cautioned that further rate reductions would take time. This hesitation shaved 2% off the value of U.S. and European stocks last week. Asian markets lost an average of 1.5%, while Brussels fared better with a decline of just 1%. Investors have little to complain about overall. The Nasdaq is still up 30.4% for the year, and Belgian stocks have delivered a 13.7% gain plus dividends. One bad week doesn’t ruin a good year.

The holiday week started strong in Asia. Japanese stocks climbed by an average of 1% this morning, while Hong Kong’s market added 0.5%. On Wall Street, MicroStrategy and Palantir will enter the Nasdaq 100, while Moderna and Super Micro Computer exit. Fagron will provide a briefing at 9:30 AM regarding a warning it received from the U.S. Food and Drug Administration. Inflation data from Belgium and U.S. consumer confidence figures are also expected today.

A Boost for Boeing

Boeing has struggled for years, with its stock falling 32% this year alone. As of mid-November, the drop was an even steeper 47%, but the company has since rebounded, gaining 28%. Last week ended on a high note as Boeing secured a major deal with Pegasus Airlines. The Turkish low-cost carrier ordered 100 aircraft, with an option for another 100. The deal is worth 36 billion dollars. Earlier in the week, China Airlines of Taiwan also ordered 14 aircraft. While things are looking up, Boeing shares would still need to rise another 47% to return to their levels at the start of the year.

East, West, Biobest is Best

On Friday after the markets closed, Floridienne announced plans for an extraordinary shareholders’ meeting on January 31. The holding company will seek approval to buy back up to 10,000 of its own shares. These shares could later be destroyed or used to hedge employee compensation in shares or options. Floridienne is willing to pay up to 900 euros per share—a notable premium given Friday’s closing price of 655 euros and the stock’s all-time high of 860 euros. The stock is illiquid, with only 5 shares traded last Friday. Floridienne is the majority shareholder of Biobest, a Belgian company specializing in biological crop protection and pollination.

Did You Know…

this week will see minimal trading activity on stock exchanges. Euronext will close early at 2:00 PM tomorrow and remain closed on Wednesday and Thursday. Wall Street will also have a half-day session tomorrow but will reopen on Boxing Day. In China and Japan, the markets will remain open throughout the Christmas week.

This article was translated from Dutch and was originally published on Spaarvarkens.be.