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Markets Update: Bitcoin continues its impressive rally and aims for the $100,000 mark. Concerns about tariffs are putting pressure on the euro and yuan. Asian semiconductor stocks are facing challenges due to fears of stricter regulations.
Global Markets Roundup: 12 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Chinese markets and chip shares led to a decline in Asian stocks on Tuesday as investors expressed concerns about the impact of U.S. President-elect Donald Trump's policies. Meanwhile, bitcoin reached a new peak as investors bet on assets that are expected to thrive under the new administration. Investors are optimistic about the potential equities boosting tax cuts and relaxed regulations that Trump's second term could bring, driving the world's most prominent cryptocurrency, bitcoin BTCUSD, to a historic high of $89,637.
The MSCI's broadest index of Asia-Pacific shares, excluding Japan (.MIAPJ0000PUS), fell by 1.7% to its lowest level since September 25. Taiwan's TWSE:TAIEX shares dropped by over 2%, while South Korean stocks were down by 1%. Chip stocks in the region have been under pressure this week following a Reuters report that the U.S. had instructed Taiwan Semiconductor Manufacturing Co 2330 to stop supplying advanced chips to Chinese customers commonly used in AI applications. Chinese shares declined, and Hong Kong stocks plunged by 2.65%. Investor sentiment remained negative as Beijing's latest stimulus plan did not include the anticipated direct consumer spending. Additionally, analysts highlighted reports of Trump considering U.S. Senator Marco Rubio for the position of secretary of state, seen as one of the most hawkish options.
European markets are expected to open lower, as indicated by futures, with pan-European STOXX 50 futures FESX1! down by 0.8%. Data provider DDHQ predicted on Monday that the Republican Party, led by Trump, had secured a majority in the U.S. House of Representatives, ensuring Republican dominance in both chambers of Congress. Wall Street's major indexes closed at record highs overnight, with Tesla TSLA seeing a 9% increase following its achievement of a $1 trillion market value on Friday, fueled by optimism that the company would benefit from CEO Elon Musk's support for Trump. The combination of Trump's win and the election of pro-crypto candidates to Congress has fueled a surge in bitcoin prices, pushing them to record levels nearing $90,000, with a target of $100,000. The current price stands at $88,516. Looking ahead, investors will closely watch U.S. consumer price inflation data on Wednesday, along with a series of speeches by Federal Reserve officials scheduled for this week, including Fed Chair Jerome Powell on Thursday. Markets are currently pricing in an 87% probability of the Fed reducing rates by 25 basis points in December.
In currencies, the euro and China's yuan are facing pressure due to the potential threat of tariffs from the new White House administration. The euro EURUSD dropped to $1.0687, its lowest level in nearly seven months, and is currently trading at $1.064075. Meanwhile, the onshore yuan reached a low of over 3-1/2 months. Conversely, the dollar is anticipated to gain strength from certain policies that are likely to maintain higher U.S. interest rates for an extended period. The dollar index DXY, which compares the greenback to six other currencies, stood at 105.59, just below the 4-month peak reached on Monday. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, oil prices declined due to China's stimulus plan and concerns about oversupply impacting the markets in recent sessions. Brent crude futures BRN1! were trading at $71.60 per barrel, marking a 0.32% decrease, while U.S. West Texas Intermediate crude futures CL1! were down by 0.35% at $67.80 per barrel. Additionally, Spot gold GOLD fell by 0.5% to $2,606 per ounce, reaching its lowest point in a month. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team