#PreMarket Primer: Tuesday, December 24: Twas The Day Before Christmas And The Markets Were Up
Apple’s highly anticipated deal with China Mobile helped both the Dow and the S&P 500 climb to all time highs on Monday.
The Dow Jones industrial average climbed 0.45 percent while the S&P 500 finished 0.53 percent higher as the technology sector soared. Apple’s deal with the world’s largest wireless carrier gave the company a much needed boost in Asian markets where its smartphones are struggling to compete with competitors.
In other news around the markets:
- The conflict in South Sudan could be nearing its end as Reuters reported that rebel leader Riek Machar has outlined his conditions to negotiate a deal with President Savla Kiir and end the conflict. Manchar demanded that Kiir release his political allies, which the South Sudanese government immediately rebuked.
- On Monday, the Italian Senate approved the nation’s 2014 budget despite its unpopular 2 billion euro tax increase. Prime Minister Enrico Letta said the nation’s economy is slowly on the mend and that the government is expecting to see a 1.0 percent growth rate next year.
- China’s short-term interest rates rose to a new high on Monday, spotlighting the nation’s increasingly troubled financial system. Despite the People’s Bank of China’s recent decision to add cash to the financial system, rates jumped and caused many to worry about the possibility of China’s cash crunch turning into a financial crisis.
- Japanese Prime Minister Shinzo Abe was able to gain approval for next year's budget on Tuesday. Under the new budget plan, Japan will use its higher tax revenue in order to cut down borrowing as well as stimulating the economy through government spending.
Asian markets were higher, the Japanese NIKKEI rose 0.12 percent and China's Shenzhen composite was up 0.65 percent. The Hang Seng index rose 1.13 percent and the South Korean KOSPI was up 0.24 percent.
Europe's markets were also on a high, the UK's FTSE rose 1.09 percent and the eurozone's STOXX 600 gained 0.71 percent. The German DAX was up 0.94 percent and the Spanish IBEX and Italy's MIB were both up by 0.72 percent.
Energy futures were moderately lower, Brent futures were down 0.04 percent and WTI futures lost 0.21 percent. Gold gained 0.12 percent but silver lost 0.40 percent. Industrial metals were mixed with copper up 0.21 percent and aluminum down 1.40 percent.
Currency markets were quiet on Tuesday, the euro was steady at $1.36 and the pound lost 0.04 percent against the greenback. The dollar gained 0.27 percent against the Australian dollar and 0.07 percent against the yen.
No notable earnings releases expected on Tuesday
With markets set to close early on Tuesday for the Christmas holiday, economic releases will be thin. However, investors will be watching for French GDP, US durable goods orders, US new home sales, US housing starts and British mortgage approvals.
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.