Weekly News Recap 16 – 20 December 2024

News for 16 December 2024

Gold Weakens at the End of Last Week

At the end of last week, gold prices weakened and closed at $2,648/oz due to the strengthening of the dollar index, which closed at 106.94, putting pressure on gold prices.

On December 16 at 21:45, the U.S. Manufacturing and Services PMI indices will be announced, with forecasts of 49.4 and 55.7, respectively.

This morning, gold prices saw a slight rebound, but the rebound is expected to be limited.

Broadcom Hits $1 Trillion Market Cap for the First Time, Boosted by AI Chip Revenue Surge

Broadcom’s stock surged by 24%, pushing the company’s market value past $1 trillion for the first time in its history. This growth was driven by the company’s quarterly revenue forecast surpassing market expectations, with strong anticipated demand for specialized AI chips in the coming years.

Storm Hits Russian Tanker, Oil Spill in Kerch Strait Pushes Prices Steady Near $70

Russian officials reported that a Russian oil tanker carrying thousands of tons of oil sank due to a severe storm on Sunday, December 15. The incident led to an oil spill in the Kerch Strait. Another oil tanker was also reported to have sustained damage from the storm. This situation has contributed to oil prices remaining steady at nearly $70 per barrel.

Eurozone PMI Surges Unexpectedly to 49.5 in December, Boosting Economic Confidence

Reuters reported that the Eurozone Composite Purchasing Managers’ Index (PMI), covering both manufacturing and services sectors, compiled by HCOB and S&P Global, rose to 49.5 in December, up from 48.3 in November. This exceeded analysts’ expectations, who had forecasted a decline to 48.2, indicating improved economic sentiment.

News for 17 December 2024

Gold Edges Up Slightly Ahead of FOMC Meeting

Gold prices inched up to $2,652/oz as the US dollar index eased from 106.94 to 106.86, providing support for higher gold prices.

On December 17, at 8:30 PM, US retail sales data will be announced, with expectations of a 0.6% increase.

The outlook for gold suggests limited movement within a narrow range, as investors await the outcome of the FOMC meeting scheduled for the evening of Wednesday, December 18.

Microstrategy Joins Nasdaq-100, Boosting Stock Price

Microstrategy’s stock closed slightly down, despite a nearly 4% intraday surge, following the announcement that it would be added to the Nasdaq-100 index, effective December 23.

As a leading business analytics and software solutions company, Microstrategy is also the largest corporate holder of Bitcoin globally. Inclusion in the Nasdaq-100 is expected to strengthen its market position and attract more investor attention.

Australian Consumer Confidence Falls 2%, Reflecting Continued Negative Outlook

The Westpac-Melbourne Institute Consumer Confidence Index in Australia fell by 2.0% in December, following a significant increase over the past two months. Although the index remains 13% higher than the previous year, the latest figure of 92.8 indicates that consumers with a negative outlook still outnumber those with a positive view.

TikTok CEO Meets Trump Ahead of Potential US Ban Over Security Concerns

Shou Zi Chew, CEO of TikTok, met with U.S. President-elect Donald Trump at his Mar-a-Lago resort in Palm Beach, Florida, on Monday, December 16. This meeting comes just weeks before TikTok, the popular video app, faces a potential ban in the U.S. due to national security concerns.

Nvidia Drops 1.7% Entering Correction Territory After Price Plunge from Peak

Nvidia, the leading AI chipmaker in the U.S., saw its stock drop 1.7% yesterday, pushing it into correction territory. This typically refers to a decline of 10% or more from the stock’s all-time high closing price.

UK Wages Surge Beyond Expectations, Investors Delay Rate Cut Forecasts from BoE

Official data released on December 17 revealed that wages in the UK rose more than expected in the quarter ending in October. This has led investors to delay their expectations of a rate cut by the Bank of England (BoE) next year, despite signs of an economic slowdown. The Office for National Statistics (ONS) reported that average weekly earnings (excluding bonuses) in the three months to October increased by 5.2% compared to the previous year, surpassing economists’ forecast of 5.0%.

News for 18 December 2024

Gold Experiences Mild Rebound This Morning

On December 17, gold prices declined, closing at $2,646 per ounce, due to a sharp rise in U.S. 10-year Treasury yields. This sparked concerns that the Federal Reserve might delay interest rate cuts in January, leading to a stronger dollar which pressured gold prices.

At 8:30 PM on December 18, the U.S. will release data on building permits, with forecasts predicting 1.43 million units.

It is expected that any rebound in gold prices will be limited, as economic recovery under Trump 2.0 may risk fueling inflation, potentially leading the Fed to keep interest rates high. This could further strengthen the dollar, continuing to pressure gold prices.

Japan’s Exports Rise 3.8% in November, Supported by Weaker Yen

Japan’s Ministry of Finance reported that exports increased by 3.8% in November compared to the previous year, driven by a weaker yen, which supported exporters amid growing global uncertainties.

Exports of chip-making machinery and non-ferrous metals were key contributors to the rise, exceeding expectations of a 2.5% increase. Meanwhile, imports fell by 3.8%, due to a decline in crude oil imports, resulting in a trade deficit of 1.176 trillion yen.

OPEC+ Concerned About U.S. Oil Production Surge If Trump Returns to White House

Reuters reports, citing sources from the OPEC+ group, that there are concerns within the organization that U.S. oil production could increase further if Donald Trump returns to the White House. This could reduce OPEC+’s market share and potentially undermine efforts to stabilize oil prices.

News for 19 December 2024

Gold Drops Sharply After Fed Signals Fewer Rate Cuts in 2024

On December 18, the price of gold dropped to $2,585/oz due to expectations that the Federal Reserve may reduce interest rates only twice in 2024, instead of the previously anticipated four cuts. This led to the U.S. Dollar Index breaking above 108.00, strengthening and putting pressure on gold prices.

On December 19, at 8:30 PM, the U.S. will release its weekly jobless claims numbers, expected to be 229K.

It is anticipated that gold prices may enter a more pronounced downtrend, driven by the reduction in the severity of the ongoing war and the flow of funds into riskier assets.

Fed Cuts Interest Rates by 0.25% but Signals Fewer Cuts in 2024

During its meeting on December 18, the Federal Reserve decided to lower short-term interest rates by 0.25%, bringing them to a range of 4.25-4.50%, as expected by analysts. However, the Fed’s Dot Plot indicated that officials now signal only two rate cuts of 0.25% each in 2024, totaling 0.50%. This is a reduction from the previous guidance in September, which suggested four rate cuts, each by 0.25%, totaling 1.00% in 2024.

Thousands of Amazon Workers Strike Ahead of Christmas

Thousands of Amazon workers are set to go on strike today (December 19) at 6:00 AM US time, just days before Christmas. The protest came after union officials revealed that Amazon had refused to negotiate over employees’ demands.

Trump Opposes Temporary Budget Bill

Donald Trump, the incoming U.S. President, has opposed the temporary budget bill proposed by the Republican and Democratic parties. Trump’s move could impact efforts to push the bill forward, which aims to help U.S. government agencies avoid a shutdown.

News for 20 December 2024

Gold Outlook Weakens

On December 19th, gold prices dropped to $2,594 per ounce, pressured by better-than-expected U.S. weekly jobless claims, which came in at 220,000. This caused the U.S. dollar to strengthen, putting downward pressure on gold prices.

On December 20th, at 20:30 UTC, the U.S. is set to release its Consumption Expenditures (PCE) Price Index, with an expected reading of 0.2%.

Micron Technology Stock Drops 16.2%

Micron Technology’s stock fell by 16.2% after the company reported earnings and revenue forecasts that were below analysts’ expectations. This negatively impacted the semiconductor sector, with the PHLX Semiconductor Index dropping 1.6%. The lower-than-expected forecast reflects challenges in the semiconductor industry, potentially driven by weak demand and chip production issues.

Apple Close to Receiving Approval to Sell iPhone 16 in Indonesia

According to Bloomberg, Apple Inc. is close to receiving approval to sell the iPhone 16 in Indonesia after President Prabowo Subianto approved a $1 billion investment from the company. This investment paves the way for Apple to enter the Indonesian smartphone market.

U.S. House of Representatives Rejects Temporary Budget Bill

The U.S. House of Representatives voted to reject the temporary budget bill backed by President-elect Donald Trump on December 19. This leaves lawmakers with just one day to approve a new temporary budget bill to avoid a government shutdown or closure of government agencies.

TSA Warns of Airport Delays Due to Potential Government Shutdown

The U.S. Transportation Security Administration (TSA) has warned that a potential government shutdown due to a budget shortfall could affect airport operations, leading to longer wait times for passengers.