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Xcovery Holdings' ensartinib, branded as Ensacove, has received FDA approval as a first-line treatment for ALK-positive non-small cell lung cancer, marking a significant milestone as the first innovative targeted lung cancer drug from a Chinese company to enter the U.S. market. While it shows a 44% reduction in progression or death compared to Pfizer's Xalkori, it faces stiff competition from established ALK inhibitors like Roche's Alecensa, which has demonstrated superior efficacy in previous studies. Despite its potential, Ensacove's market entry comes amid a landscape dominated by major pharmaceutical players.
Markets are bracing for a prolonged period of high interest rates following the Federal Reserve's recent policy decision, which raised forecasts for inflation and GDP growth while signaling caution on future cuts. The dollar surged, impacting emerging markets and tech stocks, with Micron Technology shares plummeting after disappointing earnings. Meanwhile, global central banks, including the Bank of England and Brazil's central bank, are navigating their own monetary challenges amid rising inflation and economic pressures.
The Federal Reserve's recent hawkish stance, signaling a slower pace of interest rate cuts, has led to a surge in the US dollar, causing significant pressure on major currency pairs like AUD/USD, EUR/USD, GBP/USD, and USD/JPY. Traders are adjusting positions as the dollar strengthens, with AUD/USD nearing 2 ¼ year lows and USD/JPY sensitive to the divergence in monetary policy between the Fed and the Bank of Japan. Market expectations now reflect a reduced outlook for rate cuts in 2025, influenced by strong US inflation and economic indicators.
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Metaplanet, a Japanese Bitcoin-focused investment firm, will begin trading on the US OTCQX Market under the ticker MTPLF on December 19, following a remarkable 2,200% stock growth this year. CEO Simon Gerovich emphasized the importance of this expansion for attracting global investors and enhancing confidence in the company's innovative Bitcoin Treasury Strategy. The firm plans to bolster its Bitcoin holdings while hedging against currency fluctuations and diversifying revenue through various financial instruments.
David Roche, strategist at Quantum Strategy, analyzes the Bank of Japan's recent decision to maintain unchanged interest rates. He also shares insights on the bank's outlook for 2025, highlighting the implications of this monetary policy stance.
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.
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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.
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European stocks fell 1.2% following a hawkish shift from the Federal Reserve, which reduced its forecast for interest rate cuts in 2025. The yen weakened past 156 against the dollar as the Bank of Japan maintained its borrowing costs, while US stock futures indicated a potential recovery amid a resilient economy. European government bonds also saw significant losses, with UK 10-year yields reaching their highest since October 2023 ahead of the Bank of England's policy decision.
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.
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.
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