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Asian shares showed mixed results following a record-setting day for the Nasdaq, as investors await the Federal Reserve's interest rate decision. Tokyo's Nikkei rose 0.2%, while Chinese markets declined, reflecting disappointment over economic policy announcements. The S&P 500 reached an all-time high, driven by expectations of further rate cuts, as Bitcoin surged past $107,000.
Asian shares showed mixed results following a record-setting day for the Nasdaq, as investors await the Federal Reserve's interest rate decision. Tokyo's Nikkei 225 rose 0.2%, buoyed by technology stocks, while Chinese markets declined amid disappointing economic data. South Korea's Kospi fell 1% amid political turmoil, while Australia's S&P/ASX 200 gained 0.8%. The Fed is expected to cut rates for the third consecutive time, with projections for future rate changes and economic indicators to be revealed post-meeting.
Asian markets opened mixed, with the Nikkei 225 and ASX 200 gaining while the Kospi fell. Concerns over China's economic recovery persist as November retail sales rose only 3.0%, below expectations, indicating limited success of stimulus measures. The Hang Seng index has struggled to maintain its recent gains, with potential declines ahead. Attention now shifts to US retail sales data, expected to show resilience in consumer spending, as the Federal Reserve prepares for a slower pace of rate cuts.
IG
China's capital markets experienced a record outflow of $45.7 billion in November, marking the largest monthly deficit in cross-border portfolio investments. Official data revealed that while cross-border receipts totaled $188.9 billion, payments reached $234.6 billion. Additionally, foreign institutions reduced their holdings in Chinese onshore bonds for the third consecutive month, influenced by the strengthening U.S. dollar.
The Federal Reserve is expected to implement a 25 basis point rate cut in December, potentially lowering rates to 4.25% to 4.50%, contingent on inflation and employment data. In contrast, the Bank of England is likely to maintain its rate at 4.75%, balancing inflation control with economic growth.Market volatility is anticipated around both central bank meetings, particularly affecting currency pairs like GBP/USD and interest rate-sensitive sectors. Key economic indicators, including inflation and wage growth, will be crucial in shaping future monetary policy decisions into 2025.
IG
Justin Sun plans to purchase approximately 53,000 Ethereum (ETH) valued at $209 million from Lido Finance, following a significant sell-off of nearly 30,000 ETH last week. Despite concerns over his trading activities impacting ETH's price, the altcoin has recently surged to around $4,020, with analysts predicting potential targets as high as $15,000 due to increased whale activity and market confidence.
US stocks rose on Monday, with the S&P 500 gaining 0.5% and the Nasdaq Composite up 1.2%, nearing a record close as Bitcoin hit an all-time high above $107,000. Investors are focused on the Federal Reserve's upcoming interest rate decision, with a 97% probability of a 25 basis point cut anticipated. Meanwhile, China's retail sales missed forecasts, impacting oil prices, which saw Brent dip to near $74 a barrel.
Justin Sun, founder of Tron, plans to acquire 52,905 ETH worth approximately $209 million, following a recent selloff of 29,920 ETH. His actions have raised concerns about their impact on Ethereum's market dynamics, as prices hover near $4,000, with strong trading activity and bullish sentiment among investors. Analysts are divided on whether Sun's strategy indicates confidence in Ethereum's growth or potential volatility ahead.
US stocks rose on Monday as investors prepared for the Federal Reserve's final policy decision of the year, with the S&P 500 up 0.3% and the Nasdaq Composite gaining 0.5%. Bitcoin reached a record high above $106,000 amid optimism for a crypto-friendly administration, while MicroStrategy's stock surged over 4%. Market focus is on the Fed's interest-rate decision expected on Wednesday, with a 97% probability of a 25 basis point cut, as well as updates on inflation and retail sales. Meanwhile, Super Micro Computer Inc. shares plummeted 14% after being removed from the Nasdaq 100.
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