Key Square Group LP founder and CEO Scott Bessent (middle) is interviewed in Washington, DC, in June 2024.
Stephanie Reynolds | Bloomberg | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
market rebound
US stocks appeared widespread gathering On Monday, major stock indexes hit record highs. Asia Pacific markets compared to Wall Street Mostly down Tuesday. Japanese Nikkei 225 Index fell 1.38%, while mainland China and Hong Kong markets hovered near flat lines.
Wall Street loves Bessant
President-elect Donald Trump’s pick for U.S. Treasury Secretary Scott Bessant has received high praise from all quarters stock and bond markets. Wall Street strategists are full of praise for Bessent; global analysts also think Trump’s choice is good for the market.
More tariffs on more countries
Trump vowed on Tuesday to increase tariffs on U.S. imports of Chinese goods Extra 10%according to a postal About the Truth Society. in another postalTrump said he would impose a 25% tariff on goods from Mexico and Canada. If that happens, Trump will end trade agreement between all three countries.
Safe-haven appeal undermined
gold price Down about 3% to $2,616.80 an ounce on Tuesday amid high sentiment in the stock market. Investors are in a risk-on mood as Bessant is considered friendly to Wall Street and amid reports that Israel and Hezbollah are moving closer to reconciliation. ceasefire.
(PRO) Global shares are ripe for buybacks
When companies want to return excess capital to investors, they buy back stock. Barclays noted that while European equity markets have been “bleak”, a focus on stocks with buyback potential has delivered “solid performance” in recent months. For its repo basket, the British bank listed 10 stocks Has huge upside potential.
bottom line
Trump’s rallies appear to be reaching a climax.
This time, Trump’s nominee for Treasury Secretary, Scott Bessent, has accelerated the situation. Investors like Bessant because, as the founder of hedge fund Key Square Group, he brings knowledge of Wall Street to the job and can backstop markets.
In addition, Bessant said he would prioritize controlling inflation even among policies aimed at supporting domestic growth. “I propose gradually tiering tariffs,” Bessant said. told CNBC earlier this month, before he was nominated.
Unlike previous Trump rallies in which specific assets tied to Trump’s policies – bank stocks, small caps and Bitcoin – have seen disproportionate gains, yesterday’s market gains were substantial.
this S&P 500 Index rose 0.3%, with more than three of the index’s four stocks gaining. this Dow Jones Industrial Average Up 0.99%, continuing record high Nasdaq Index Add 0.27%.
Bessant’s nomination isn’t just a boost for large-cap stocks. Small caps performed even better, likely because of Bessent express support Trump’s economic agenda, which will benefit smaller, domestically oriented companies. this Russell 2000 The small and mid-cap index rose 1.47%, rising for the sixth consecutive day. It closed at a new high, surpassing the record set in 2021.
The bond market also reacted positively to the news. The 10-year Treasury yield fell more than 14 basis points.
“You couldn’t ask for a better reaction from the market,” said Quincy Krosby, chief global strategist at LPL Financial. “This is the market applauding.”
U.S. markets will be closed Thursday for Thanksgiving. Bessent may be one of the things investors will be grateful for.
—CNBC’s Alex Harring and Hakyung Kim contributed to this report.
