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The FOMC is expected to cut interest rates by 25 basis points, moving to a range of 4.25-4.50%, amid concerns about the labor market despite easing inflation. The unemployment rate has risen to 4.2%, with job creation lagging behind targets. Market focus will be on the Fed's statement and future rate cut trajectory. In the US 500 index, a triangle pattern suggests potential resistance at 6075 could lead to targets of 6100 and 6152, while a drop below 6026 would signal negative momentum.
IG
Thailand is exploring the possibility of adopting Bitcoin as legal tender, a move that could enhance financial inclusion and attract foreign investments. While the potential benefits are significant, challenges such as regulatory hurdles and Bitcoin's volatility pose risks to economic stability. The outcome of this initiative may influence global cryptocurrency adoption and regulation.
The S&P 500 is poised for a strong 2024, having risen over 27% this year, driven by high-growth tech stocks and a favorable interest rate environment. However, history shows mixed outcomes after two consecutive years of over 20% gains, with potential risks including geopolitical tensions and economic downturns. Analysts remain divided on whether the index will achieve another double-digit gain in 2025, despite positive economic indicators.
XRP's recent price drop to $2.33 may reverse due to the upcoming launch of Ripple's RLUSD stablecoin, potential XRP-backed ETF approvals, and a favorable resolution in its ongoing SEC case. Analysts predict XRP could soar to $35 by 2025, driven by increased institutional interest and a bullish market trend.
Christian Lindner, former Finance Minister of Germany, criticized the government's lack of action on Bitcoin and crypto regulation during a Bundestag address, urging for policy reforms to enhance Germany's competitiveness against the U.S. He highlighted missed opportunities and called for the inclusion of Bitcoin in national reserves. While his stance has support within the Free Democratic Party, some experts question his late advocacy after years in office.
The Dow Jones Industrial Average fell 250 points, marking its longest losing streak since 1978, as traders await the Federal Reserve's interest rate decision this week. Oil prices also declined, with West Texas Intermediate crude down 1% to $70 a barrel and February Brent crude dropping 0.8% to $73.30 a barrel.
The Binance ecosystem is thriving, with BNB retesting its all-time high amid a bullish altseason, driven by increased demand from DeFi and memecoin projects. Ethereum's recent surge past $4k has further fueled optimism for a macro bull run across large-cap altcoins, including BNB, which has regained its position as the fifth largest crypto asset with a market cap of approximately $104.7 billion. The BSC network's robust activity, with over 1 million active addresses and significant total value locked, underpins BNB's rise.
Wall Street is gearing up for a potential year-end rally, with the S&P 500 expected to reach 6200 points, driven by favorable seasonality and signs of an oversold market. Key factors influencing market sentiment this week include the Fed's projections and PCE inflation figures, which could impact future rate cuts. While the outlook is bullish for the end of the year, the market may face pressure in early January following strong gains from the previous year.
IG
Wall Street is experiencing a widening divergence between growth and value stocks, with the Nasdaq 100 hitting a record high while the Dow Jones faces its eighth consecutive loss. As the Federal Reserve meeting approaches, market participants are cautious, anticipating a potential 'hawkish cut' that could influence future rate adjustments amid ongoing inflation concerns.Sector performance indicates a strong preference for growth stocks, highlighted by significant gains in tech giants like Alphabet, Tesla, and Broadcom, while the S&P 500 remains in a near-term range. The ratio of value to growth stocks is at its lowest since January 2022, reflecting this trend.
IG
The S&P 500 is poised for a potential year-end rally, targeting 6200 points, driven by favorable seasonality and signs of an oversold market. Key factors this week include the Fed's projections and PCE inflation data, which could influence rate cut expectations and market sentiment. However, the beginning of next year may face pressure following strong gains in 2023.

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