POWER: EIB approves €2.4bn for Renewables, Hydrogen and Grids
The EIB has approved €2.4bn in financing for clean energy, business investment, transport, and telecoms in the EU, with significant investments in electricity grids, hydrogen refuelling, and Ukraine's energy system repairs, it said.
- €791mn will support expanding hydrogen production for transport, enhancing electricity distribution, and improving flood protection in Poland.
- Additionally, €879mn will be allocated for business innovation and investments aimed at improving energy efficiency and sustainability.
- This includes funding for automotive component R&D at 15 sites across Europe and low-carbon glass production in France and Spain.
- The EIB also approved €100mn in financing to repair Ukraine's damaged municipal heating infrastructure.
- The remainder of the funds will be used to support EU telecommunications and some projects outside the EU.
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LOOK AHEAD: Tuesday Data Calendar: JOLTS, ISM Services, Tsy 10Y Re-Open
- US Data/Speaker Calendar (prior, estimate)
- 7-Jan 0800 Richmond Fed Barkin economic outlook, (text, Q&A)
- 7-Jan 0830 Trade Balance (-$73.8B, -$78.3B)
- 7-Jan 1000 JOLTS Job Openings (7.744M, 7.750M)
- 7-Jan 1000 JOLTS Job Openings Rate (4.6%, --)
- 7-Jan 1000 JOLTS Quits Level (3.326M, --), Rate (2.1%, --)
- 7-Jan 1000 JOLTS Layoffs Level (1.633M, --), Rate (1.0%, --)
- 7-Jan 1000 ISM Services Index (52.1, 53.5)
- 7-Jan 1000 ISM Services Prices Paid (58.2, 57.5)
- 7-Jan 1000 ISM Services Employment (51.5, 51.1)
- 7-Jan 1000 ISM Services New Orders (53.7, 54.0)
- 7-Jan 1130 US Tsy $85B 42D CMB auction
- 7-Jan 1300 US Tsy $39B 10Y Note re-open (91282CLW9)
US STOCKS: Chip Makers, Interactive Media Shares Leading First Half Gainers
Stocks are trading higher early Monday, tech sector strength helping SPX Eminis rise to the best levels since December 27. Currently, the DJIA trades 353.54 points (0.83%) at 43082.63, S&P E-Minis up 76.5 points (1.28%) at 6065, Nasdaq up 351.3 points (1.8%) at 19971.12.
Semiconductor makers continued to benefit from news announced late Friday that Microsoft plans to invest $80B in AI-enabled data centers - at least of which are expected to be in the US. Leading gainers included Micron Technology +10.98%, Super Micro Compute +10.17%, Teradyne +6.40% while First Solar, Nvidia, KLA Corp, Applied Materials ad Lam Research all gained 5-6% in the first half.
Meanwhile, interactive media and entertainment shares buoyed the Communication Services sector with Alphabet +3.18%, Meta +2.99% and Paramount +2.44%.
On the flipside, Utility and Real Estate sectors underperformed early Monday, multi-energy providers weighing on the former: Eversource -1.88%, Sempra -1.63%, Ameren -1.60%. Office and Residential investment trusts weighed on the Real Estate sector with BXP Inc -2.34%, Camden Property -1.90%, Kimco -1.64%.
Reminder, the next round of quarterly earnings kicks off mid-January with Blackrock, Bank of NY Melon, Wells Fargo, JP Morgan, Goldman Sachs, Citigroup, US Bancorp, M&T Bank and PNC all reporting between January 13-16.
FED: Bank Stocks Up, Swap Spreads Wider With Barr Leaving As VC Supervision
- Another question, however, was whether Barr would stay on as a Governor through the full term to 2032 (In 2017, Tarullo resigned both the VC position and his Governorship). Since Barr has decided to stay on, that means there are no vacancies in the Board of Governors for Trump to fill. So absent any governors resigning, Trump will have to choose one of the existing governors as the next VC for Supervision.
- In this context, Gov Bowman - a Trump appointee in 2018, and with ample experience in banking - appears to be the most likely choice. She has advocated a lighter regulatory approach than her colleagues.
- Following Barr's resignation announcement, banking stocks are up 1.5%, while swap spreads - which had moved increasingly negative over Barr's term - moved wider in anticipation of less stringent regulations on banks' balance sheets (10Y swap +1.5bp to -48.3bp).
