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Asian shares showed mixed results following a record-setting day for the Nasdaq, with Tokyo's Nikkei 225 gaining 0.2% while Chinese markets declined. Investors await the Federal Reserve's interest rate decision, with expectations of a third consecutive cut to support the job market. Bitcoin reached a new high, boosting MicroStrategy shares, while oil prices fell slightly.
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
Meru has launched a blockchain wallet in Bolivia, integrating with Visa, Mastercard, and MoneyGram, targeting freelancers across Latin America. The wallet, built on Stellar's blockchain, allows self-custody and DeFi returns, reflecting a surge in cryptocurrency transactions exceeding $75 million in four months. With over 50,000 transactions processed, Meru aims to enhance digital payment adoption and support remote workers in the region.
European stocks declined due to political instability in France and Germany, with Chancellor Olaf Scholz's government collapsing and an early election set for February 23. Meanwhile, France's credit rating was downgraded, although European PMI data showed less contraction than expected, easing some tariff concerns. The focus now shifts to the upcoming UK consumer price index data and the Bank of England's interest rate decision, with expectations of further rate cuts in the future.
IG
Asian markets are mixed, with the Nikkei and ASX gaining while the KOSPI declines. China's economic recovery shows signs of slowing, as November retail sales fell short of expectations, raising concerns about consumer confidence and demand. The Hang Seng Index is unwinding its December gains, with potential support levels being closely monitored. Economic focus shifts to upcoming US retail sales data, expected to reflect resilience in consumer spending.
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.
Bitcoin has surged to an all-time high of $107,000, driven by strong bullish sentiment. On-chain metrics indicate a significant gap between Bitcoin's price and the true market mean price, suggesting unrealized profits and potential market overheating. As December progresses, the market stands at a pivotal point, raising questions about Bitcoin's future trajectory.
Stock futures are flat following the Dow's longest losing streak since 2018, dipping 60 points or 0.1%. The Dow fell for the eighth consecutive day, while the Nasdaq Composite reached a new intraday high. Traders are anticipating a 95% chance of a quarter-point rate cut from the Federal Reserve at its upcoming meeting, with concerns about potential tariffs under the new administration looming as a significant worry for 2025.
Tech stocks led the market as the NASDAQ 100 surpassed 20,000 for the first time, while the Dow Jones faced a seven-day decline. Stagflation concerns grew with rising CPI and PPI, and jobless claims hitting a two-month high, prompting expectations of a Federal Reserve rate cut.The US dollar continued its upward trend, gold held its gains, and oil prices rose amid geopolitical tensions. Upcoming economic indicators and central bank meetings will be pivotal in shaping market sentiment.
IG
Asian stocks are set to open lower ahead of key interest rate decisions from major central banks, including the Federal Reserve. Futures for Hong Kong equities indicate a decline, while US-listed Chinese stocks fell over 2%. Despite this, Wall Street saw gains, with the Nasdaq 100 reaching a record high, driven by MicroStrategy Inc.'s anticipated inclusion in the index. The 10-year Treasury yield remained steady at 4.40%.

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