Morning Chronicles FM-Radio | December 12, 2024

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In recent days, the financial landscape has experienced significant fluctuations, particularly on the American stock market where the Nasdaq Composite Index surged nearly 2%, marking a substantial achievement as it crossed the 20,000-point threshold for the first timeIn contrast, the Dow Jones Industrial Average experienced a downturnThis dynamic shift was largely propelled by Tesla, which, alongside other tech giants such as Google, saw nearly 6% increases in their stock prices, driving these companies to new record highsOther notable tech players like Meta, Amazon, and Netflix also joined the echelon of newly established peaks.

The semiconductor sector showcased a promising performance, with the index climbing close to 3%, bolstered by impressive gains from NVIDIA which surged over 3%, while Broadcom skyrocketed nearly 7%. Meanwhile, Apple initially reached a record high before reversing its gains, reflective of the volatile nature of the tech stock market

Certain companies like Advanced Micro Devices (AMD) faced dire consequences as its stock saw a staggering 8% drop amid speculations of its potential exclusion from the Nasdaq 100 indexFollowing the release of its quarterly financial results, Adobe's stock fell more than 8% in after-hours trading, underlining the challenges it faces in an increasingly competitive tech landscape.

The release of the November Consumer Price Index (CPI) data has instilled a wave of anticipation in the markets regarding potential interest rate changesThe inflation rate recorded an annual increase of 2.7%, with a month-over-month rise of 0.3%, both figures aligning with forecasts and showcasing a new seven-month peakAnalysts are interpreting this CPI data as an indicator of persistent inflationary pressures that the Federal Reserve will need to navigateConsequently, this development has bolstered expectations of an interest rate cut in the near future, pushing the dollar and U.S

Treasury bond yields into a brief V-shaped rebound.

In the realm of Chinese stocks, the trends have illustrated a relative moderation in losses, with electric vehicle manufacturers NIO and Xpeng seeing declines of over 2%. Interestingly, Fangdd, a real estate platform, experienced a significant surge of over 11%. Yet, the offshore Chinese yuan revealed vulnerabilities, plummeting over 300 points and falling below the 7.29 Yuan mark against the dollar.

As for international dynamics, the Bank of Japan indicated a willingness to delay any potential interest rate hikes, leading to a notable depreciation of the yen, which dipped below the critical 152 markThe Canadian dollar, on the other hand, exhibited resilience following the central bank's considerable rate reductionsIn the world of cryptocurrencies, Bitcoin made a substantial comeback, reclaiming the $100,000 threshold, while spot gold prices rose by 1%, achieving a five-week high by testing the $2,720 per ounce level

Oil prices also witnessed positive momentum, appreciating by 2%.

Within the Asian trading session, the three major indexes of the A-shares reflected mixed outcomesIn a noteworthy development, consumer consumption sectors made a collective rebound, although the Hang Seng index faced a decline exceeding 1%, as government bond futures trended downward.

As the financial day wrapped up, indices showed varied performances in the U.SThe Dow Jones fell by 0.22%, contrasting with the S&P 500 which experienced an uptick of 0.82%, and the Nasdaq rose by an impressive 1.77%. Meanwhile, European stock markets displayed a slight positive trend with the STOXX 600 index closing up by 0.28%, Germany's DAX 30 increasing by 0.34%, France's CAC 40 gaining 0.39%, and the UK’s FTSE 100 rising by 0.26%. Back in China, the Shanghai Composite Index increased by 0.29%, with the Shenzhen Component up by 0.33%, while the ChiNext Index dipped by 0.11%. In the bond market, yields for the benchmark 10-year U.S

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Treasury bonds rose by 3.89 basis points to 4.2652%, and the 2-year bonds were up by 1.02 points, reporting at 4.1532%.

In commodities, West Texas Intermediate (WTI) crude for January delivery closed $1.70 higher at $70.29 per barrel, representing a 2.48% increase, while Brent February crude also saw gains, rising by $1.33 to settle at $73.52 per barrelCOMEX gold futures surged by 1.29% to $2,753.60 per ounceOn the base metals front, lead declined by over 1%, while nickel and tin registered positive ends.

As global events unfold, the U.STreasury's recent auction results reflected robust demand, evidenced by the strong bidding for ten-year bonds which reached a bidding ratio not seen since 2016. The auction of $39 billion in ten-year bonds yielded encouraging results, yet after the results were released, the yields momentarily dipped before rising againAdditionally, the Bank of Canada, recognized as a leader among the G7 nations, slashed its benchmark interest rate by 50 basis points to 3.25% in an effort to combat economic uncertainties, expressing cautious concerns over potential tariffs on Canadian exports imposed by the U.S.

Across the globe, economic indicators reveal that India faces sluggish growth due to high interest rates and structural imbalances within its economy

However, the ascent of a new "dovish" leader at the Reserve Bank of India may soon prompt rate cuts that could invigorate the economyOn another front, Qatar has revealed ambitious plans to boost investment in technology, AI, healthcare, and real estate infrastructure, indicating a strategic pivot to diversify its investment portfolio further.

OPEC's revision of global oil demand figures indicates a downward adjustment for the fifth consecutive month, forecasting a decrease in consumption growth, leading to an overall dim outlook on the oil marketOn the corporate front, Adobe's fourth-quarter outcomes fell short of expectations, concerning investors about its transition towards AI capabilities and driving its shares down over 8% in after-hours tradingThe outlook for Advanced Micro Devices (AMD) remains a mixed bag, as speculation mounts regarding its possible removal from the Nasdaq 100 index as its shares plummeted by 8%. Meanwhile, the burgeoning AI cloud sector, bolstered by NVIDIA, sees CoreWeave positioned for a 2024 public listing with a staggering valuation of $23 billion.

In capitalizing upon fresh trends, tech companies are reshuffling their strategies

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