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Market participants anticipate minimal surprises from the central bank, expecting rates to remain steady while hinting at gradual hikes in 2025. The Fed's recent 25 basis point cut has shifted projections, now favoring two cuts in 2025 and two in 2026, amid rising inflation and growth forecasts.The hawkish tone from the FOMC meeting led to a sell-off on Wall Street, with Treasury yields surging and the US dollar reaching its highest level since November 2022. Asian markets followed suit, with the Nikkei 225 testing key support levels as traders await the Bank of Japan's upcoming meeting.
IG
Market participants are adopting a defensive stance ahead of the Federal Reserve and Bank of Japan meetings, with expectations for a 25 basis point rate cut from the Fed to return rates to neutral amid rising unemployment and stagnant inflation. The US dollar shows resilience despite less hawkish Fed rate bets, while the EUR/USD faces downside risks unless it breaks above 1.062. Meanwhile, diminished BoJ rate-hike expectations are weighing on the yen, with USD/JPY maintaining upward momentum within a rising channel.
IG
UBS has upgraded Renault to "Neutral" with a target price of 41 euros, following reports of a potential merger between Nissan and Honda. Analyst David Lesne noted Renault's previous intention to reduce its stake in Nissan, suggesting that a merger could facilitate share sales to strategic partners or Honda.
Honda Motor (NYSE:HMC) received an upgrade from UBS Group, moving from a "sell" to a "neutral" rating, while StockNews.com downgraded it from "strong-buy" to "buy." The stock traded down to $24.74, with a 52-week range of $24.35 to $37.90, and reported earnings of $0.43 per share, missing estimates. Institutional investors hold 5.32% of the company, which operates across multiple segments including motorcycles and automobiles.
UBS has maintained a 'Neutral' rating for Renault, setting a target price of 41 euros, amid speculation of a potential merger between Nissan and Honda. Analyst David Lesne noted Renault's previous intentions to reduce its stake in Nissan, suggesting that a merger could facilitate share sales to strategic partners or Honda. As of December 18, 2024, Renault's stock was trading at €46.72, reflecting a 3.18% increase.
2025 is poised to be a transformative year for cryptocurrency, driven by potential economic recovery, increased money supply, and institutional adoption, particularly through Bitcoin ETFs. The integration of AI into financial markets and Bitcoin's emergence as a strategic reserve asset further bolster optimism, despite potential geopolitical and economic risks. Technical indicators also suggest a bullish trend, highlighting the need for cautious investment strategies.
Investors are anticipating a quarter-percentage point interest-rate cut from the Federal Reserve, with U.S. stock futures rising after the Dow's nine-session losing streak. Honda and Nissan are in merger talks, while Micron Technology's stock is up ahead of its earnings report, and Nvidia shares are rebounding after a recent decline.
Metaplanet's stock plummeted 13.73% after the company announced its new Bitcoin Treasury Operations, despite Bitcoin reaching an all-time high above $108,000. The Tokyo-based firm plans to increase its Bitcoin holdings and projects a 240% revenue increase for the fiscal year, aiming for a consolidated operating profit for the first time since FY2017. Currently, Metaplanet holds 1,142.287 BTC, valued at $119 million, positioning it as one of Japan's largest corporate Bitcoin holders.
Oasys has partnered with Animoca Brands Japan to enhance its blockchain gaming ecosystem, particularly in Greater China. As part of this collaboration, Animoca Brands Japan will become a validator on the Oasys blockchain and invest directly in the platform, leveraging its extensive network to boost blockchain gaming innovations globally. This strategic alliance aims to accelerate Web3 adoption through gaming, with both companies committed to expanding their reach and resources in the region.
Metaplanet has officially launched Bitcoin Treasury Operations, aiming to integrate Bitcoin into its financial framework. The Tokyo-based company plans to purchase, hold, and manage Bitcoin, leveraging various financial instruments while generating income from Bitcoin put option sales. With projected revenue of 890 million yen for the fiscal year, Metaplanet is on track for its first consolidated operating profit in seven years, bolstered by significant unrealized gains on its BTC holdings.
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