Table of Contents:
The American stock exchanges close in the negative
The American stock markets ended the week with a negative trend, marking a reversal compared to the recent rally that followed the elections. This change of course took many investors by surprise, who expected continued growth. The Dow Jones Index lost 196 points, equal to a decline of 0.45%, while the S&P 500 fell by 39.50 points (-0.66%) and the Nasdaq registered a decline of 240.25 points (-1.14%)
.
The Federal Reserve’s statements
The president of the Federal Reserve, Jerome Powell, recently stated that there is no urgency to lower interest rates, thanks to the strength of the US economy. This statement had an immediate impact on the markets, affecting investor expectations. However, inflation continues to represent a growing concern, with producer prices showing an annual increase from 1.9% to 2.4% in October, exceeding forecasts that indicated a
rise of 2.3%.
Increase in inflation and retail sales
In addition, the consumer price inflation figure increased, marking an increase from 2.4% to 2.6% for the first time since March. Retail sales in the United States increased by 0.4% in October, reaching 718.9 billion dollars, exceeding expectations, which were +0.3%. This result consolidated an increase of 2.8% compared to last year, highlighting some resilience in consumption, despite concerns about inflation
.
Economic situation in China and Italy
Mainland Chinese stock markets closed lower for the second consecutive day, with investors uncertain about the effectiveness of Beijing’s recent economic stimulus measures. Although retail sales increased by 4.8% in October, industrial production disappointed expectations, growing by only 5.3%. In Europe, ISTAT reported a decrease in import prices in Italy by 0.7% on a monthly basis and by 0.5% on an annual basis, mainly due to the fall in the prices of energy products
.
Business strategies and future prospects
In a context of economic uncertainty, Samsung Electronics announced a share repurchase plan of 10,000 billion won, with the objective of increasing shareholder value, to be completed by 2025. This strategic move could prove crucial to maintaining investor confidence and supporting the value of shares in a period of economic volatility
.
