Donald Trump is set to become President of the United States early next year, but he's already back in the spotlight, especially on the world stage. His return has stirred up financial markets, leading Wall Street to one of its best recent weeks. The S&P 500 rose by 4.66%, marking its biggest jump since October 2023's 5.85% surge, and U.S. stocks continue to set new records.

In Europe, though, it’s a different story. The STOXX Europe 600 fell 0.8% last week, its third straight week in the red. European investors recognize that with the Republican back in the White House, the continent might face less favorable conditions.

The so-called “Trump Trades” - assets that benefit or suffer from Trump’s policies—paint a clear picture. Europe finds itself on the losing end, along with renewable energy and the Mexican peso. On the other hand, bitcoin appears to be a big winner, surging above $81,000 after gaining 33% in a month, fueled by Trump’s newfound enthusiasm for cryptocurrencies. Private prison operators and, to a lesser extent, U.S. regional banks are also seeing a spike in interest.

Looking ahead, the broader effects of a Republican-led policy shift may take time to materialize. In his previous term, Trump pushed for several major changes, though some plans fell short, partly due to the pandemic and also because his strategic threats often proved effective without action. This time, however, many believe he could take a more aggressive approach. Economists are forecasting a mix of tax cuts and higher tariffs, likely driving up inflation and possibly disrupting the Fed’s planned rate cuts - creating a new set of challenges for investors. For now, however, the market is riding the post-election momentum.

Meanwhile, China has announced a 10 trillion yuan (about 1.3 trillion euros) program to alleviate local government debt pressures. The amount met expectations, but hopes for extra fiscal stimulus were left unmet. Chinese inflation continued to slow in October, and producer prices dropped further—signals that don’t align with hopes for an economic rebound. Foreign investment in China is also dwindling, hinting that investors are still hesitant to make big moves there despite recent government measures.

Here’s a quick recap of financial headlines to wrap up the weekend:

  • Trump, back in the news: He’s meeting Joe Biden at the White House on Wednesday, had a phone call with Ukraine’s President Zelensky (with Elon Musk present), reportedly asked Vladimir Putin to "ease tensions in Ukraine," reached out to Robert Lighthizer to lead his trade policy, and urged Senate Republicans to approve his appointments without delay. He’s also preparing a potential exit from the Paris Agreement.
  • In France, the main pilots' union is planning a strike on Thursday over increased taxes. Emmanuel Macron is set to meet with UK Prime Minister Keir Starmer in Paris, followed by talks with Donald Tusk and Mark Rutte on Ukraine and NATO.
  • Bitcoin broke past $80,000 and then $81,000 for the first time.
  • The U.S. ordered TSMC to stop delivering AI-related chips to China, according to Reuters.
  • COP29 kicks off in Baku - a bit of a surprise choice for the summit.

In the Asia-Pacific region, the week starts off unevenly. Australia, Japan, and Taiwan saw modest declines, while India gained 0.7%. Hong Kong dropped 1.8%, though mainland China inched up 0.2%. European indicators suggest a potential rebound ahead.

Economic highlights of the day

In the United States, the University of Michigan's Consumer Sentiment Index (4:00 p.m.) will be of interest. Full agenda here.

The dollar is up to EUR 0.9395 and GBP 0.7770. The ounce of gold is down to USD 2,654. Oil remains steady, with North Sea Brent at USD 72.30 a barrel and US light crude WTI at USD 68.64. The yield on 10-year US debt  stands at 4.30%. Bitcoin is up to USD 81,740.

    In corporate news:

    • Amazon: develops connected glasses for its delivery drivers to reduce last-mile delivery times.

    • Booking Holdings: online travel agency booking.com may cut jobs as part of an organizational restructuring, stating Friday that it is in the early stages of the process with no firm decision made.

    • Cisco: JP Morgan upgrades its recommendation from "neutral" to "outperform," with the stock up 1.55% in pre-market.

    • Cigna Group, Humana: health insurer Cigna stated Monday that it is not considering a merger with competitor Humana. Cigna's stock is up 3.2% in pre-market trading, while Humana's is down nearly 3%.

    • Coinbase Global, Mara Holdings, Riot Platforms: cryptocurrency-related stocks advance in pre-market after bitcoin surpassed $81,000 on Monday. Coinbase Global is up 16.3%, Mara Holdings 19.4%, and Riot Platforms 13.4%.

    • Enphase Energy: the solar inverter manufacturer will cut its global workforce by about 17%, affecting around 500 employees and contractors as the company streamlines operations amid slowing domestic solar energy demand.

    • Sapiens International: the insurance software provider drops 22.2% in pre-market trading after lowering its annual revenue forecast on Monday.

    • Spirit Aerosystems, Boeing: both companies are close to securing a financing agreement that could provide Boeing with significant support and may be announced in the coming days, according to an industry source familiar with the matter.

    • Starbucks: the National Labor Relations Board, the federal agency investigating illegal labor practices in the United States, stated Friday that Starbucks violated the law by telling Seattle cafe workers they would lose benefits if they joined a union.

    • Tesla: the electric car maker's market capitalization closed above the symbolic $1 trillion mark on Friday, buoyed by Donald Trump's election. The stock is up 6.5% in pre-market trading Monday.

    Analyst recommendations:

    • Akamai Technologies : FBN Securities maintains its outperform rating and reduces the target price from USD 120 to USD 110.
    • Arista Networks : Argus Research Company maintains its buy recommendation and raises the target price from USD 450 to USD 475.
    • Bristol-Myers Squibb Company : Deutsche Bank maintains its hold recommendation with a price target raised from 48 to USD 55.
    • Cvs Health Corporation : TD Cowen maintains its buy recommendation and reduces the target price from USD 85 to USD 73.
    • Eaton Corporation : Vertical Research Partners maintains its buy recommendation and raises the target price from USD 355 to USD 375.
    • Fluor Corporation : Citigroup maintains its buy recommendation with a price target reduced from USD 65 to USD 60.
    • Gen Digital : Argus Research Company maintains its buy recommendation and raises the target price from USD 29 to USD 34.
    • Genpact Limited : Mizuho Securities maintains a neutral recommendation with a price target raised from 40 to USD 45.
    • Illinois Tool Works : Vertical Research Partners maintains its hold recommendation with a price target raised from USD 265 to USD 275.
    • Ingersoll Rand : Vertical Research Partners maintains its buy recommendation and raises the target price from USD 110 to USD 120.
    • Johnson Controls International : Vertical Research Partners maintains its hold recommendation with a price target raised from USD 80 to USD 85.
    • Moderna : Citigroup remains outperform recommendation with a price target reduced from USD 96 to USD 86.
    • Nvent Electric : Vertical Research Partners maintains its buy recommendation and raises the target price from USD 76 to USD 85.
    • Otis Worldwide Corporation : Vertical Research Partners maintains its hold recommendation with a price target raised from USD 95 to USD 100.
    • Parker-Hannifin Corporation : Vertical Research Partners maintains its buy recommendation and raises the target price from USD 660 to USD 725.
    • Regeneron Pharmaceuticals : Argus Research Company maintains its buy recommendation and reduces the target price from USD 1175 to USD 1000.
    • Trane Technologies : Vertical Research Partners maintains its hold recommendation with a price target raised from USD 395 to USD 415.
    • Us Foods Holding Corp. : CL King & Associates maintains its buy recommendation and raises the target price from USD 65 to USD 75.
    • Vertiv Holdings Co : Vertical Research Partners maintains its buy recommendation and raises the target price from USD 130 to USD 140.
    • Watsco : Vertical Research Partners maintains its hold recommendation with a price target raised from USD 490 to USD 550.