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Friday, November 28

Global equity markets are trading higher amid optimism surrounding potential Federal Reserve interest rate cuts in December and positive economic data from various regions, including Canada and Europe. The Canadian GDP contracted by 0.3% in October, following a growth of 0.6% in the third quarter, while average weekly earnings rose by 3.1%, indicating mixed economic signals.

In Europe, equity indices are trading mixed as investors digest recent economic data releases, including Germany's unexpected retail sales drop of 0.3%. Meanwhile, the Eurozone Economic Sentiment Indicator improved slightly to its highest level since April, reflecting cautious optimism among consumers and businesses.

Trading activity has been affected by a significant outage at the Chicago Mercantile Exchange (CME), which halted futures trading across multiple asset classes due to cooling issues at a data center operated by CyrusOne.

Ethereum (ETH/USD) [+1.3%]
Ethereum (ETH/USD) has increased by 1.3% during market hours on Friday, buoyed by positive sentiment surrounding anticipated Federal Reserve interest rate cuts in December. Notably, Dunamu Inc. has strategically integrated with NAVER Corp. to enhance global expansion through AI and Web3 technologies, reflecting growing institutional interest in cryptocurrencies. On social media, Vitalik Buterin's donation of 256 ETH to support privacy messaging applications has garnered attention, alongside BitMine's acquisition of an additional 14,618 ETH, valued at approximately $44.3 million. Additionally, discussions have emerged regarding a Black Friday pre-sale for Ethereum involving Tom Lee, while significant options expirations totaling $15.4 billion in Bitcoin and Ethereum are set for today. The Royal Government of Bhutan also transferred 160.35 ETH to QCP Capital earlier today, further highlighting active participation in the Ethereum ecosystem.

iShares MSCI Japan ETF (EWJ) [-0.5%]
Japan's inflation held steady, with consumer prices excluding fresh food rising 2.8% year-over-year in November, surpassing the median economist forecast of 2.7%. This data, released by the Ministry of Internal Affairs and Communications, may prompt the Bank of Japan to consider an interest rate hike soon. Additionally, industrial production unexpectedly increased by 1.4% month-over-month, largely due to a 6.6% rise in automotive output, marking the third consecutive monthly gain in this sector. The Nikkei 225 index surged over 899 points, approximately 1.85%, driven by optimism regarding interest rate outlooks and positive cues from global markets, including strong U.S. equity performances. The iShares MSCI Japan ETF (EWJ) reported a daily return of -0.34%. Among its holdings, MUFG contributed a slight negative return. Meanwhile, the AUD/USD currency pair declined by 0.15%, reflecting broader market sentiment that may influence EWJ.

ORCL | -2.7% | -14.6B
Oracle Corp | Systems Software
Oracle Corporation's stock has dropped significantly in premarket trading, falling below a previous low established on Wednesday. Morgan Stanley has raised alarms about the company's increasing debt risk, particularly amid concerns in the credit market. The 5-year Credit Default Swap for Oracle is currently around 1.25% annually, with potential escalation toward the 2008 peak of 2% if market conditions remain uncertain regarding Oracle's funding for its AI data center expansion. Reports indicate that a group of banks is discussing an additional $38 billion in funding for Oracle and data center builder Vantage to support further sites for OpenAI. These developments reflect heightened scrutiny surrounding Oracle's financial health as it navigates its growth strategy amidst ongoing pressures related to AI spending.

GME | +2.9% | +195.3M
GameStop Corp | Computer & Electronics Retail
GameStop Corp. experienced a notable price movement, increasing by 2.9% since Wednesday. Investor Michael Burry shared a previously unseen email from 2019, in which he urged GameStop's management to undertake a $237.6 million share buyback authorization, arguing it would enhance earnings per share significantly. Burry noted the company had over $480 million in cash, sufficient for the buyback while allowing for business investments and debt reduction. Additionally, social media buzz highlighted a 5% price increase overnight, with users discussing the stock's movement and expressing interest. Conversations referenced Burry's earlier communications and critiques of financial practices, further fueling engagement around GameStop. The stock closed at $21.63, reflecting a 2.71% increase, with an additional uptick after hours.

COIN | +2.6% | +1.8B
Coinbase Global Inc | Financial Exchanges & Data
Cathie Wood's ARK Investment recently acquired 62,000 shares of Coinbase Global Inc (COIN), as reported approximately one day ago. In contrast, Coinbase executives sold shares during the same timeframe. Social media discussions have highlighted COIN's notable price movements amid heavy trading, with a post from last night noting its increase. Additionally, Bitcoin (BTC) is reportedly approaching $92,000, which may influence COIN's momentum. A post from November 26 speculated that COIN could see substantial gains if it maintains a price around $261. These developments coincide with a recent increase in COIN's price of 2.8% since Wednesday.

NVO | +1.3% | +2.2B
Novo Nordisk A/S | Pharmaceuticals
Novo Nordisk A/S has seen an increase in its share price following significant developments. Recent news revealed that Medicare has reduced prices for GLP-1 medications, which are vital to Novo Nordisk's product offerings, potentially enhancing market accessibility. Additionally, a report highlighted the company's partnerships in the UAE and ongoing bids for Metsera, reflecting positive business expansion efforts. On social media, discussions have centered around Novo Nordisk's pursuit of FDA approval for a higher dosage of its Wegovy weight-loss injection, which may influence market performance. Furthermore, there was a downgrade in sentiment towards the company, with some suggesting that buying the dip in 2024 was viewed as incorrect. This context may affect how the stock is perceived moving forward.

BABA | -1.4% | -40.6B
Alibaba Group Holding Ltd | Broadline Retail
JPMorgan has reduced its price target for Alibaba (9988:HK) from HK$235.00 to HK$225.00 while maintaining an Overweight rating, contributing to a reported decline in shares. DBS has also lowered its target price, coinciding with a 1% drop in stock value. Recent developments include the launch of Alibaba's Quark AI Glasses in China, aimed at the wearables market. Concurrently, allegations regarding Alibaba's technological support for the Chinese military have emerged, as reported by the Financial Times. Discussions on social media indicate ongoing net inflows into BABA via the stock connect, despite concerns about potential inclusion on the Pentagon’s 1260H List. Additionally, China's State Administration for Market Regulation plans to release new measures regulating live e-commerce, which will impact major players like Alibaba and Meituan.

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