Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
Wall Street’s major indexes gained on Friday, with the S&P 500 and Nasdaq hitting intraday record highs. The boost came as traders increased bets on a December Federal Reserve rate cut, fueled by stronger-than-expected November jobs data.
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Jobs Data Sparks Optimism
U.S. job growth surged in November, rebounding from hurricane and strike disruptions. While the labor market showed resilience, analysts said the report suggests a steady easing in conditions, paving the way for the Fed to lower interest rates.
“This jobs report hits the Goldilocks zone — not too hot to derail rate cuts, but not too cold to spark economic fears,” said Josh Jamner, investment strategy analyst at ClearBridge Investments.
Traders now see a 90% probability of a 25-basis-point rate cut at the Fed’s Dec. 17-18 meeting, up from 67% before the jobs report.
Market Highlights
Indexes:
- Dow Jones Industrial Average rose 0.11% to 44,815.17.
- S&P 500 gained 0.36% to 6,097.33.
- Nasdaq Composite climbed 0.72% to 19,843.00.
Sector Performance:
- The Consumer Discretionary sector surged 1.3%, reaching a record high. Tesla (+1.1%) and Amazon (+1.4%) led the gains.
- Lululemon Athletica soared 17.2% after raising its full-year forecast, citing strong demand for athletic wear.
- Ulta Beauty jumped 12.1%, reflecting robust holiday demand for perfumes and makeup.
Fed and Economic Indicators
Fed officials, including San Francisco Fed President Mary Daly, are set to speak before a media blackout begins on Saturday ahead of the Fed’s policy meeting.
Consumer sentiment showed unexpected strength, with the University of Michigan survey posting a preliminary reading of 74 in December, surpassing estimates of 73.
Broader Market Context
Weekly Gains:
- S&P 500 and Nasdaq are on track for a third consecutive week of gains.
- The Dow is poised for minor losses but has seen a robust year overall, buoyed by investor enthusiasm for AI-driven growth and megacap tech stocks.
Political Tailwinds: President-elect Donald Trump's anticipated tax cuts and regulatory easing are expected to further boost corporate performance.
Market Breadth and Activity
- Advancing stocks outpaced decliners by a 1.81-to-1 ratio on the NYSE and 1.97-to-1 on the Nasdaq.
- The S&P 500 recorded 20 new 52-week highs, while the Nasdaq posted 67 new highs.
With rate-cut hopes and strong corporate performance leading the way, Wall Street appears poised to close the week on a high note.
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