What's moving markets today: December 11, 2019

By CNN Business

Updated 5:05 p.m. ET, December 11, 2019
4 Posts
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7:00 a.m. ET, December 11, 2019

Why the Fed is about to become a 'sideshow'

From CNN Business' Julia Horowitz

President Donald Trump wants the Federal Reserve to keep cutting interest rates. That looks unlikely — at least for now.

Investors agree that the Fed, which announces its latest interest rate decision on Wednesday, will choose to sit tight for the time being.

From strategists at Bank of America: "The Fed's communication since the October meeting has been crystal clear: policy is appropriate and there would need to be a 'material reassessment' of the outlook to adjust rates."

A solid jobs report for November all but ensured that policy will remain unchanged.

Things get much more interesting when looking ahead to 2020.

Wall Street's view: Goldman Sachs expects rates to stay on hold next year, with Fed members signaling one hike in 2021 and one in 2022. But not everyone agrees. UBS, for example, thinks that the Fed will cut interest rates in March, April and June.

Read more here.

A version of this story first appeared in CNN Business' Before the Bell newsletter. You can sign up right here.

6:27 a.m. ET, December 11, 2019

Saudi Aramco shares increase 10% after world's biggest IPO

From CNN Business' Julia Horowitz

Saudi Aramco shares jumped 10% when they began trading Wednesday, capping a stock market debut that shattered records but failed to achieve the $2 trillion valuation sought by Crown Prince Mohammed bin Salman.

Saudi Arabia's giant state-owned oil monopoly last week pulled off the biggest IPO in history, raising $25.6 billion by selling 1.5% of the company. That exceeded even Alibaba's 2014 market debut in New York.

The IPO on Saudi Arabia's Tadawul stock exchange in Riyadh valued Aramco at roughly $1.7 trillion, making it the most valuable publicly traded company in the world ahead of Apple (AAPL), which is worth nearly $1.2 trillion.

Read more here.

6:29 a.m. ET, December 11, 2019

The British pound has been riding high. An election surprise could send it crashing

From CNN Business' Julia Horowitz

Investors are betting that Prime Minister Boris Johnson will sweep to victory in Thursday's election. If he doesn't, the pound and UK stocks are poised to plunge.

The pound has strengthened about 2% since the general election was called in late October, and on Wednesday was trading near a seven-month high around $1.31, and way above a low of $1.20 hit in August. The FTSE 250 index of midsize British companies has gained roughly 3%.

Traders are counting on Johnson, who has held his lead in the polls against Labour leader Jeremy Corbyn, to score a majority in parliament on December 12. This would allow the Conservative leader to take the country out of the European Union by January 31 — removing some of the Brexit uncertainty that has hung over businesses and markets for more than three years.

Read more here.

6:30 a.m. ET, December 11, 2019

Asian stocks struggle for direction without more progress on a US-China trade deal

From CNN Business' Laura He

Stocks in Asia struggled for direction Wednesday as investors received mixed signals ahead of another round of US tariffs on Chinese goods expected December 15.

  • Japan's Nikkei 225 (N225) dropped 0.2%.
  • Hong Kong's Hang Seng Index (HSI) seesawed in early trading. It was last up 0.1%.
  • South Korea's Kospi (KOSPI) also veered between small gains and losses. It was last up 0.3%.
  • China's Shanghai Composite (SHCOMP) briefly dipped into the red, but then inched up 0.1%.

Read more here.