The weekly market update highlights

A significant drop in Wall Street indices, triggered by statements from Federal Reserve chairman Jerome Powell, who suggested only two interest rate cuts next year, instead of the four previously planned. This news caused a wave of selling on the US and European markets. 

Among the biggest gainers of the week were Teva Pharmaceuticals, up 33.88%, and Darden Restaurants, up 12.54%. On the other hand, Vertex Pharmaceuticals and Amentum Holdings suffered significant falls. In the commodities market, oil and base metal prices fell due to the appreciation of the dollar. In the cryptocurrency sector, Bitcoin reached a new record high, but then fell sharply.

Global Markets Fall as Fed Signals Tighter Policies

 European and global shares suffered significant falls after the US Federal Reserve indicated a slower pace of interest rate cuts to 2025, raising the median terminal rate to 3.9%. The STOXX 600 index fell 1.5%, recording its biggest drop in three weeks, while interest-sensitive sectors such as technology and real estate led the losses.

EDP Renováveis Exits Colombia with Potential Losses

After five years of operations, the company has left wind projects in the country, accumulating an estimated loss of 700 million euros.

Europeans with Cryptocurrencies More than Double in Two Years

An ECB study revealed that 9% of Europeans own cryptocurrencies, with Slovenia (15%) and Greece (14%) being the leaders in the Eurozone.

Exchange Rate Volatility and the Risks of 2025

KKR's report points out that economic and political instabilities could lead to significant volatility in global currencies, creating potential sharp corrections in the markets.

Consumer Confidence in the Eurozone and the US Down

Confidence indicators show deterioration in economic perception, with Germany facing challenges due to high prices and job insecurity.

Accenture Records Results Above Expectations

Strong demand for generative artificial intelligence services boosted revenues and profits in the quarter, highlighting the increasing digitalization of business operations.

Fed cuts rates, but forecasts higher inflation in 2025

 The US Federal Reserve has announced a 25 basis point cut in interest rates to between 4.25% and 4.50%. However, it projects a slower pace of cuts in the coming years and warns of a possible rise in inflation in 2025 due to the Trump administration's economic policies.

American markets in historic decline.

The Dow Jones index recorded its worst losing streak since 1974, accumulating ten consecutive days of falls, with a strong impact on the markets due to the Fed's decisions.

Renault boosts European shares.

European shares rose slightly, supported by the technology sector and the rise of Renault following news of an alliance with Honda and Nissan.

Swedish real estate company SBB soars 22%.

SBB concluded an agreement with creditors, leading to a significant rise in its shares on the Swedish stock exchange.

Technology sector leads gains in 2024.

The Nasdaq is up 33% for the year, driven by artificial intelligence and expectations of lower interest rates.

US housing market faces challenges.

Despite the recovery in housing construction, tariffs on imported products and labor shortages could hamper new projects in 2025.