Stock Markets
Ukraine summit sees hard road to peace as way forward uncertain
By Dave Graham and Sabine Siebold
BUERGENSTOCK, Switzerland (Reuters) -Western powers and their allies at a summit in Switzerland denounced Russia’s invasion of Ukraine on Sunday, but they failed to persuade major non-aligned states to join their final statement, and no country came forward to host a sequel.
Over 90 countries attended the two-day talks at a Swiss Alpine resort at the behest of Ukrainian President Volodymyr Zelenskiy, billed as a “peace summit” even though Moscow was not invited.
Russia ridiculed the event from afar. A decision by China to stay away all but assured that the summit would fail to achieve Ukraine’s goal of persuading major countries from the “global South” to join in isolating Russia.
Brazil attended only as an “observer”. And in the end, India, Indonesia, Mexico, Saudi Arabia and South Africa all withheld their signatures from the summit communique, even though some contentious issues were omitted in the hope of drawing wider support.
Still, the conference provided Kyiv with a chance to showcase the support from Western allies that it says it needs to keep fighting against a far bigger enemy.
“We are responding to Russia’s full-scale invasion of Ukraine not only with a full-scale defense of human life, but also with full-scale diplomacy,” Zelenskiy said.
Leaders including U.S. Vice President Kamala Harris, German Chancellor Olaf Scholz and French President Emmanuel Macron gathered at the mountaintop resort of Buergenstock. U.S. President Joe Biden, in Europe for other events last week, did not attend despite public invitations from Zelenskiy.
The frontlines in Ukraine have barely moved since the end of 2022, despite tens of thousands of dead on both sides in relentless trench warfare, the bloodiest fighting in Europe since World War Two.
In her closing remarks, Swiss President Viola Amherd warned that the “road ahead is long and challenging”.
Russia, as it has for weeks, mocked the gathering.
“None of the participants in the ‘peace forum’ knows what he is doing there and what his role is,” said Dmitry Medvedev, Russia’s former president and now deputy chairman of the country’s Security Council.
‘THINGS CAN’T GO ON LIKE THIS’
After initial Ukrainian successes that saw Kyiv repel an assault on the capital and recapture territory in the war’s first year, a major Ukrainian counter-offensive using donated Western tanks fizzled last year. Russian forces still hold a fifth of Ukraine and are again advancing, albeit slowly. No peace talks have been held for more than two years.
“We know that peace in Ukraine will not be achieved in one step, it will be a journey,” European Commission Chief Ursula von der Leyen said, calling for “patience and determination”.
“It was not a peace negotiation because (Russia’s President Vladimir) Putin is not serious about ending the war, he’s insisting on capitulation, he’s insisting on ceding Ukrainian territory – even territory that today is not occupied.”
In the absence of a clear path to ending the war, Zelenskiy emphasised practical issues, such as nuclear safety and securing food supplies from Ukraine, one of the world’s biggest grain exporters.
The summit’s final declaration called for Ukraine’s control over the Zaporizhzhia nuclear plant and its Azov Sea ports to be restored. But in line with the conference’s more modest stated aims, it omitted tougher issues of what a post-war settlement for Ukraine might look like, whether Ukraine could join the NATO alliance or how troop withdrawals from both sides might work.
“The more allies that can be found to say ‘Things can’t go on like this’, ‘This is too much’, ‘That’s overstepping the mark’, that also increases the moral pressure on the Russian Federation,” said Austrian Chancellor Karl Nehammer.
As Sunday’s talks turned towards issues of food security and nuclear power, some leaders left early.
No country came forward to host another such meeting, with notable silence from Saudi Arabia, mooted as a possible future venue. Foreign Minister Prince Faisal bin Farhan Al Saud said the kingdom was ready to assist the peace process but a viable settlement would hinge on “difficult compromise.”
Since initial peace talks in the first months after the Feb. 2022 invasion, Ukraine has consistently demanded Russia withdraw from all its land, while Moscow has demanded recognition of its rule over territory its forces captured.
Last week, in remarks clearly aimed at the conference, Putin said Russia would not halt the war until Kyiv withdraws its forces fully from four provinces that Moscow only partially controls and claims to have annexed. Kyiv swiftly denounced that as a demand for surrender.
“Of course we…understand perfectly that a time will come when it will be necessary to talk to Russia,” Ukrainian Foreign Minister Dmytro Kuleba said. “But our position is very clear: We will not allow Russia to speak in the language of ultimatums like it is speaking now.”
Western leaders at the summit endorsed Kyiv’s refusal to negotiate under such terms.
“Confusing peace with subjugation would set a dangerous precedent for everyone,” said Italian Prime Minister Giorgia Meloni.
Stock Markets
SCWO Stock Hits 52-Week Low at $0.71 Amid Market Challenges
In a challenging market environment, shares of 374Water (SCWO) have touched a 52-week low, dipping to $0.71. The company, with a market capitalization of $104 million, maintains a strong liquidity position with a current ratio of 3.81 and more cash than debt on its balance sheet, according to InvestingPro data. The company, which specializes in water treatment solutions, has seen its stock price struggle significantly over the past year, reflecting a broader trend in the sector. Investors have been cautious, as evidenced by the stock’s 1-year change, which shows a substantial decline of 52.96%. InvestingPro analysis indicates the stock is currently in oversold territory, with 18 additional investment insights available to subscribers. This downturn highlights the volatility faced by environmental technology companies and raises concerns about future performance amidst uncertain market conditions. With a beta of -0.51, the stock typically moves opposite to market direction, potentially offering diversification benefits.
In other recent news, 374Water Inc. has secured approximately $12.2 million through a registered direct offering, involving the sale of common stock and warrants. The cleantech company expects the gross proceeds before fees and expenses to be around the $12.2 million mark, with D. Boral (OTC:) Capital LLC serving as the exclusive placement agent for the offering. The capital infusion is scheduled to be finalized by November 18, 2024, pending customary closing conditions.
In further developments, 374Water has initiated operations of its AirSCWO technology at the Iron Bridge Regional Water Reclamation Facility in Orlando. This marks a significant step in commercial biosolids processing, with the technology designed to efficiently process biosolids and PFAS contaminated wastes. The successful integration of the AirSCWO system into the Iron Bridge facility demonstrates the company’s capacity to destroy persistent organic pollutants, including PFAS.
The Florida Department of Environmental Protection supported the installation with a grant under the Bilateral Infrastructure Law emerging contaminant funding. Notably, CEO Chris Gannon highlighted the operational success in Orlando as crucial for showcasing the technology’s capacity to manage municipal, federal, and industrial organic waste streams at scale. The company anticipates additional commitments across the United States, including a deployment to Orange County Sanitation (CA) in 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Global shares and dollar firm in muted pre-Christmas trade
By Alden Bentley, Samuel Indyk and Rae Wee
NEW YORK/LONDON (Reuters) -Wall Street topped off a global share rally in thin trade on Thursday as markets prepared for early Christmas Eve closes, while the dollar was buoyed by firmer Treasury yields and speculation that the Federal Reserve would slow its easing in 2025.
The was 0.47% higher in late morning trade, the rose 0.73% and the rose 0.99%.
U.S. stock trading wraps up at 1:00 p.m. EDT/1800 GMT, and the bond market closes at 2:00 p.m. Most financial centers around the world are closed on Wednesday for Christmas. The U.S. reopens on Thursday, while many financial centers have a second day off.
“Meagre news and data flow should keep the focus on a more hawkish Fed,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
MSCI’s gauge of stocks across the globe went up more than half a percent. The pan-European index rose 0.18%. 100 rose 0.19% and 40 rose 0.14%. German stocks were closed for the Christmas holiday.
In Asia, Chinese stocks rose after sources told Reuters that Beijing planned to issue a record amount of special treasury bonds next year as it ramps up fiscal stimulus to revive a faltering economy.
The blue-chip index and both ended 1.3% higher. Hong Kong’s advanced 1.1%.
The news came shortly after China’s finance ministry said authorities would ramp up fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents, as well as expanding consumer goods trade-ins.
Still, investors remain cautious on the outlook for the world’s second-largest economy, particularly as it faces the threat of hefty tariffs from U.S. President-elect Donald Trump.
Elsewhere, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.37%.
FED FOCUS
Investors are taking direction from last week’s 25 basis point Fed interest rate cut, its signals on the strength of the economy and its slow progress bringing inflation down to its 2% target. Markets are now pricing in about 35 basis points of easing for 2025, implying one quarter-point rate cut and around a 40% chance of a second.
U.S. Treasury yields pared gains after the Treasury saw solid demand for a $70 billion sale of five-year notes, but remained higher on the day. The two-year Treasury yield, which is sensitive to changes in Fed rate expectations, was up 0.9 bp at 4.359%, while the benchmark 10-year yield rose 2.6 bp to 4.625%, reaching a seven-month high at 4.629%. [US/]
“Like markets, the Fed will need to consider U.S. policies on tariffs and immigration in its inflation and growth outlook. We believe the subtle slowing in the U.S. labor market will still be the Fed’s paramount concern,” said analysts at Citi Wealth.
“While always uncertain, our base case expectation for a 3.75% policy rate is unchanged. It’s a far cry from the 1.7% U.S. policy rate average of the past 20 years.”
The Fed’s cut was the third one this cycle, taking the Fed funds rate to 4.25%-4.5%.
Ahead of Trump’s return to the White House in January, global central banks have urged caution over their rate paths due to uncertainty on how his planned tariffs, lower taxes and immigration curbs might affect policy.
Data on Monday showed U.S. consumer confidence unexpectedly weakened in December as the post-election euphoria fizzled and concerns about future business conditions emerged.
In currencies, the rose 0.14% hovering near a two-year high hit Monday, having climbed more than 2% in December so far.
The euro eased 0.15% to $1.0389, while the yen languished near last week’s five-month low, trading at 157.35 per dollar.
Japan’s Finance Minister Katsunobu Kato on Tuesday reiterated Tokyo’s discomfort with excessive foreign exchange moves and put speculators on notice that authorities are ready to act to stabilise a faltering yen.
rose 0.13% to $2,616.26 an ounce, having risen about 27% this year, heading for its biggest yearly gain since 2010.
rose 1.56% to $70.32 a barrel and rose to $73.73 per barrel, up 1.51% on the day. [O/R]
Stock Markets
Wall Street advances in short Christmas Eve session on megacap gains
By David French
(Reuters) -Wall Street’s main indexes all ended higher on Tuesday, with gains in megacap and growth stocks bolstering benchmarks in a truncated Christmas Eve session.
Both the and the scored four straight sessions of gains. For the Dow, the run follows its 10-session skid earlier this month, its longest losing streak since 1974.
The benchmarks closed higher on the first day of a historically strong period called the “Santa Claus rally.” The on average has gained 1.3% in the last five days of December and first two days of January, according to data from the Stock Trader’s Almanac going back to 1969.
With megacap stocks having outsized influence on markets, their performance is often a key driver of indexes. When coupled with reduced trading volumes and few other catalysts, as many investors take time off for the holidays, this is even more pronounced.
All the so-called Magnificent Seven megacap technology stocks climbed on Tuesday, led by Tesla (NASDAQ:).
The automaker’s rise helped push consumer discretionary shares higher, making them the top gaining sector in the S&P.
Elsewhere, chip manufacturers were also buoyant. Broadcom (NASDAQ:) and Nvidia (NASDAQ:) were up, while Arm Holdings (NASDAQ:) climbed a day after losses from losing a court case.
Growth names rose despite U.S. Treasury interest rates remaining elevated – the benchmark 10-year note yielded around 4.61% on Tuesday. Traditionally, higher debt costs crimp growth stocks.
However, the long-term themes around technology development, including advancements in artificial intelligence, overshadow any near-term moves in Treasuries, said Charlie Ripley, senior investment strategist for Allianz (ETR:) Investment Management.
“This reinforces that view that the sector is going to remain strong, and should be well into the new year,” he said.
According to preliminary data, the S&P 500 gained 64.93 points, or 1.09%, to end at 6,039.00 points, while the Nasdaq Composite gained 264.31 points, or 1.34%, to 20,029.19. The Dow Jones Industrial Average rose 366.75 points, or 0.85%, to 43,273.70.
Stock markets shut at 1:00 p.m. ET on Tuesday and will be closed for Christmas on Wednesday.
After a stellar run to record highs following the November election, which sparked hopes of pro-business policies under U.S. President-elect Donald Trump, Wall Street’s rally hit a bump this month as investors grappled with the prospect of higher interest rates in 2025.
The U.S. Federal Reserve eased borrowing costs for the third time this year last Wednesday, but signaled only two more 25-basis-point reductions next year, down from its September projection of four cuts, as policymakers weigh the possibility of Trump’s policies stoking inflation.
Allianz’s Ripley said the themes which had driven the market higher in the past two months remained intact, and actions by the Fed had not killed the rally.
“Heading into 2025, things are set up with good positioning,” he said, noting factors including economic outlook, consumption in the U.S. and the labor market.
Crypto-related stocks traded higher on Tuesday, including Microstrategy (NASDAQ:), Riot Platforms (NASDAQ:), and MARA Holdings, as the price of bitcoin advanced.
NeueHealth soared after the healthcare provider said New Enterprise Associates, its largest shareholder, and a group of existing investors will take the company private in a $1.3 billion deal.
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