TNC Daily Open: Quiet Markets Buoyed by Wall Street Rally

This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.

What To Note Today

Massive automobile merger

Official merger talks between Nissan and Honda have started, the two firms said Monday. By June 2025, the negotiations will be over.

Following the company’s announcement that it would repurchase 24% of its issued shares by December 23 of next year, Honda’s shares, which are listed in Japan, were up 13.4% on Tuesday, on pace for their highest day since October 2008.

Taiwan dominates Asian markets

Taiwan’s Taiex stock market was the best-performing in Asia-Pacific in 2024 as of December 23 after gaining 28.85%.

The Taiex’s performance was boosted by its emphasis on technology and tech-related stocks. In 2024, Foxconn, a company that trades as Hon Hai Precision Industry, increased 77.51%, while Taiwan Semiconductor Manufacturing Company surged 82.12%.

Holidays off to a strong start

Monday saw a surge in U.S. markets due to the robust performance of major tech stocks. For Christmas Eve, the New York Stock Exchange closes early on Tuesday.

Tuesday’s trading of Asia-Pacific stocks was mixed. The Nikkei 225 in Japan fell by 0.4% despite the surge in Honda’s stock. In the meantime, the Hang Seng index for Hong Kong increased by over 1%.

UK GDP is not doing well

The Office for National Statistics released a revised statistic on Monday that shows the U.K. GDP did not grow in the three months ending in September.

The gross domestic product for the third quarter was previously estimated to be 0.1%. The ONS reported earlier this month that the U.K. economy had unexpectedly shrunk by 0.1% in October.

Buffett’s largest treasure trove

The greatest sum of cash that Berkshire Hathaway, owned by Warren Buffett, has ever stockpiled is $325 billion.

According to Oppenheimer figures, cash currently makes up almost 30% of Berkshire’s total assets, the largest percentage in 34 years.

This year, Buffett sold a lot of shares in Apple and Bank of America. Why is the renowned investor, who is 94 years old, hoarding so much money? Analysts offer their opinions.

Bottom Line

The U.S. markets had a festive start to the trading week. The Dow Jones Industrial Average recovered from previous losses to gain 0.16%, while the S&P 500 gained 0.73%. The Nasdaq Composite increased by 0.98% as a result of robust results from major tech companies like Tesla, Nvidia, and Meta Platforms.

However, after the price of the cryptocurrency dropped to below $93,000 on Monday, shares of Bitcoin proxy MicroStrategy fell 8.8% on its maiden day in the Nasdaq-100 index.

Nevertheless, according to FactSet statistics, MicroStrategy remains one of the top-performing US tech firms with a $5 billion or higher valuation. Due in large part to the company’s bitcoin holdings, which it began to accumulate in 2020, its shares have soared 426% so far this year.

Since Donald Trump’s election victory, the value of MicroStrategy’s bitcoin holdings has increased to almost $42 billion. Since it started purchasing bitcoin in large quantities, the company’s market capitalisation has increased from about $1.1 billion to $82 billion.

Investors hoping to profit from MicroStrategy’s meteoric increase should keep in mind that the share price of the company is presently rising in tandem with the price of bitcoin.

On the other hand, MicroStrategy’s stock might also plummet if bitcoin values plummet for any reason, given how erratic cryptocurrencies can be.

This week’s trading is probably going to be light. In preparation for Christmas Day, U.S. markets will close early on Tuesday and take a holiday on Wednesday.

However, minimal trading does not imply modest market movements. Craig Johnson, chief market technician at Piper Sandler, wrote in a note, “We are not giving up on the possibility of a Santa Claus coming to Broad & Wall this year, as the market’s primary uptrends remain intact.”

Investors may discover an additional gift beneath the tree while they enjoy the festivities and the S&P’s 25.25% year-to-date increase.

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