1. Super Micro Computer submits compliance plan to the Nasdaq and has appointed a new auditor.

Super Micro is selling products featuring Nvidia’s next-generation AI chip, Blackwell, putting it in strong competition with Dell and Hewlett Packard Enterprise.

It was +17% in after hours trading, but still down 80% year-to-date.

2. Investors appear ready to pay any price for US stocks.

Earnings growth is better in the US but the S&P 500 is now trading at 22.5 times forward earnings, approaching a post-pandemic peak, and is at a record high 70% premium to Europe’s Stoxx 600’s 13.3 forward P/E ratio.

The US represents about 74% of the MSCI World market cap, also a record high.

“Will US dominance continue? We think yes,” says Kathleen Brooks, research director at XTB, citing reasons including higher economic and earnings growth. “Momentum is also important. It feels like US stocks have such an advantage over the European stocks that they may not be able to play catch up.”

3. Goldman Sachs now predicts Gold could reach a new all-time high of $3,150 next year due to Donald Trump's victory.

4. “The German election may potentially mark a pro-growth policy turn.”

German export markets are facing headwinds from likely US import tariffs and slow Chinese growth. So a new government might be more open to fiscal spending to support the ailing domestic economy.

“Potential changes include deregulation, a more flexible labor market, and corporate tax cuts,” say Citi strategists led by Beata Manthey.

“Tax cuts could boost DAX EPS by ~2% and by ~3% for the mid cap MDAX index,” they estimate. The sectors most exposed to domestic revenue include real estate, utilities, and financials, according to Citi strategists.

5. The long-awaited recovery in renewable energy stocks is being derailed by the election of Donald Trump.

The MSCI Alternative Energy Index has plunged over 20% since the start of the quarter.

“Will the IRA (renewable energy tax credits) get fully repealed? It’s not the most likely outcome, but it is what’s now priced into the market.

“We see risk/reward firmly to the upside and retain our buy rating.” Says Citgiroup.

The sector has now become outright cheap in absolute and relative terms.

European renewable stocks trade at valuations similar to those seen during the worst of the Covid pandemic.

6. Could there be a Nuclear Renaissance in Europe?

“New nuclear projects - unless subsidised - are likely to be more expensive than alternative power generation options and come with high risks and long lead times. “

“With subsidies, new nuclear could rival combined solar and battery projects and provide a more adequate response to European seasonal peak demand.”

7. Uranium spot price is at the lowest level since November 2023.

Uranium is down 15% YTD to $77/lb, but risk-reward may be starting to turn more positive as supply challenges mount.

Last friday, Russia announced temporary restrictions on enriched uranium exports to the US.

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