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Chinese equities are expected to remain volatile as investors await concrete fiscal policies to combat deflation and stimulate corporate earnings. Despite a 15% gain in the CSI 300 Index in 2024, uncertainty persists, with analysts predicting mixed outcomes for 2025 amid geopolitical tensions and potential US tariff hikes. The government's commitment to support the economy is noted, but effective measures are crucial for a sustainable recovery.
Morgan Stanley has downgraded Ethereum's price target from $5,000 to $3,500 amid a market downturn influenced by a Fed interest rate cut. Despite this, Ethereum's ecosystem shows growth, with a 46.11% price increase in 2024 and significant inflows into ETH ETFs, totaling $12.17 billion in assets under management.Meanwhile, DTX Exchange is gaining traction as a hybrid trading platform, raising $11.20 million in its presale and offering innovative features that could position it as a major competitor to established exchanges like Binance and Uniswap.
Morgan Stanley has withdrawn from the Net-Zero Banking Alliance, becoming the third US bank to do so this week, following Citigroup and Bank of America. This exodus, which includes previous departures by Goldman Sachs and Wells Fargo, occurs as Donald Trump prepares for his second term, during which he plans to increase oil production and reduce green technology subsidies. JP Morgan remains the only major Wall Street bank in the alliance, while Swiss banks like UBS and Raiffeisen continue their membership.
Morgan Stanley is considering adding cryptocurrency trading to its E-Trade platform, anticipating a more favorable regulatory environment under President-elect Donald Trump. This move could position E-Trade as a significant competitor to established platforms like Coinbase, as the brokerage manages 5.2 million accounts with around $360 billion in assets. Other traditional brokerages, including Robinhood and Fidelity, are also expanding their crypto offerings, reflecting the growing demand for digital asset trading.
UBS has cut its iPhone sales forecast for December, citing declining demand and a drop in market share in China, where Apple now holds 15.6% compared to Huawei's 15.3% and Vivo's 18.6%. The revision has led to a 2% decrease in revenue estimates and a lower EPS forecast, while competition intensifies with Huawei's New Year discounts. Despite challenges, analysts maintain a consensus 'buy' rating for Apple, with price targets ranging from $184 to $325, driven by anticipated AI upgrades through 2025.
US bitcoin ETFs have surpassed gold funds, reaching nearly $130 billion in assets under management since their launch in January 2024. This growth is fueled by institutional interest from firms like BlackRock and Fidelity, as well as a favorable regulatory environment and rising demand for alternatives to traditional assets amid economic uncertainty. BlackRock's iShares Bitcoin Trust leads the market with almost $60 billion in assets, reflecting a significant shift towards digital assets in traditional finance.
U.S. stock index futures showed little movement ahead of a shortened trading session on Christmas Eve, with the Dow flat and the S&P 500 and Nasdaq slightly up. Trading volumes are expected to be light, raising the potential for choppy markets as Wall Street enters a historically strong period. Despite recent gains, concerns linger over high valuations and the impact of interest rate policies on growth stocks.
Elon Musk's xAI has successfully raised $6 billion in a Series C funding round, attracting major investors like BlackRock, a16z, and Fidelity, bringing its total funding to $12 billion. The capital will enhance the development of its generative AI model, Grok, and expand infrastructure, aiming for a valuation of $50 billion. xAI is also training Grok 3, expected to launch by year-end, with plans to scale its GPU infrastructure significantly.
The cryptocurrency market underwent a significant transformation in 2024, with Bitcoin rebounding to new heights following the launch of spot ETFs and substantial investments from Wall Street firms. Major banks now dominate trading, while regulatory changes have led to a cleaner, more professional market, integrating crypto into traditional finance.New projects and improved technology have made crypto more accessible, with gaming and NFT applications finding real-world use cases. As the market matures, institutional investment continues to grow, signaling a bright future for the crypto landscape.
Nestle SA's stock has plummeted 25% this year, prompting J. Stern & Co. to increase its holdings, deeming the shares "far too cheap." Following the ousting of its CEO and reduced sales guidance, analysts are cautiously optimistic about a turnaround under new CEO Laurent Freixe, with expectations of a 20% stock rise in the next year. Despite the challenges, market sentiment suggests the selloff may have been excessive, particularly given Nestle's strong product portfolio in coffee, pet care, and nutrition.
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