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Inflation in the U.S. rose to 2.4% year-on-year in November, while month-on-month inflation slowed to 0.1%. Despite this uptick, the Federal Reserve cut interest rates by 25 basis points, with concerns about future inflation driven by potential tariffs under President-elect Trump. The Fed now anticipates inflation will not reach its 2% target until late 2026.
Richard Saynor, CEO of Sandoz, aims to position the company as a leader in producing affordable generics and biosimilars, especially as a wave of patents expires. He emphasizes the challenges of sustainable production and the complexities of drug development, while expressing optimism about potential changes in the U.S. healthcare system under the new administration. Saynor believes that making medicines more accessible can significantly expand patient treatment opportunities.
Bitcoin ETFs experienced a record outflow of $671.9 million on December 19, coinciding with a drop in Bitcoin's price to around $96,409. Grayscale's GBTC and ARK Invest's ARKB were the largest contributors to the outflows, reflecting a broader market decline that saw over $1 billion liquidated in 24 hours. Despite this, Bitcoin maintains a 57.4% dominance in the crypto market, with analysts suggesting the downturn may be temporary as discussions around "buying the dip" surge to an eight-month high.
Markets experienced turmoil following the Federal Reserve's indication of fewer rate cuts in 2025, strengthening the dollar and prompting global central banks to reconsider their policies. While the S&P 500 and Nasdaq fell slightly, the Dow broke a 10-day losing streak, suggesting mixed investor sentiment amid heightened volatility. The upcoming U.S. personal consumption expenditures price index is expected to significantly influence market reactions.
Bitcoin experienced a significant price drop, falling from over $105,000 to below $96,000, following a record $671.9 million net outflow from Bitcoin ETFs on December 19. This reaction was triggered by Fed Chair Powell's comments on interest rates and inflation, leading to heightened investor fear. Ethereum ETFs also faced outflows, with $60.5 million withdrawn, contributing to a 9% decline in ETH's price.
Bitcoin (BTC) and major cryptocurrencies faced significant losses, with BTC dropping 4.2% and Dogecoin (DOGE) plummeting 11%, extending its weekly decline to over 21%. The downturn followed a hawkish FOMC meeting, triggering a selloff across risk assets, including a 3.5% drop in Nasdaq and a 2.9% decline in the S&P 500. Traders noted that overly bullish market sentiment prior to the meeting left the market vulnerable to shocks, despite December typically being a bullish month for BTC.
Donald Trump’s crypto initiative, World Liberty Financial, executed a $10 million swap of wrapped Bitcoin for tokens linked to adviser Justin Sun, founder of the TRON blockchain. Despite being marketed as a decentralized finance platform, it remains in early development stages, with sales falling significantly short of projections. The project has faced scrutiny following a controversial partnership involving Sun, leading to a lawsuit against Coinbase after the exchange sought to delist wrapped Bitcoin due to concerns over Sun's influence.
The SMI is lower in pre-market trading as US stock markets close little changed following an interest rate shock, with Micron weighing on the Nasdaq. The Chinese central bank maintained key interest rates amid economic challenges, while the Shanghai stock exchange rose 0.5%. Geopolitical uncertainties and policy shocks are expected to influence markets significantly in 2025, as highlighted by TD Securities' James Rossiter. The Chinese economy faces a real estate crisis, compounded by potential tariffs from US President-elect Donald Trump.
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