Weekly News Recap 2 – 6 December 2024

News for 2 December 2024

Gold Weakens This Morning

At the end of last week, gold prices increased, closing at $2,650/oz, supported by a weakening US Dollar Index, which dropped from 105.94 to 105.78. This made gold more attractive as a safe-haven asset.

On December 2nd, at 22:00, the US will release its ISM Manufacturing PMI data, with a forecast of 47.7, which could influence the short-term direction of the gold market.

Trump Warns BRICS Against Creating a New Currency to Replace the US Dollar

On Saturday, November 30, Donald Trump, the incoming U.S. president, warned the BRICS nations not to create a new currency or support any other currency to replace the U.S. dollar. He emphasized that if the BRICS group proceeds with such actions, they will face import tariffs as high as 100%.

China Warns the U.S. Over Taiwan Issue After Approving $385 Million Arms Sale

On December 2, a spokesperson for China’s Ministry of Foreign Affairs announced that China would take strong and decisive measures to protect its sovereignty, security, and territorial integrity after the U.S. Department of Defense revealed that the U.S. State Department had approved an arms sale to Taiwan worth $385 million, which includes spare parts for F-16 fighter jets and radar equipment.

China also warned the U.S. government, under President Joe Biden’s leadership, to exercise caution on matters related to Taiwan, especially following the official visit to the U.S. by Taiwan’s President Lai Ching-te, marking his first official visit to the U.S.

News for 3 December 2024

Gold Closes Lower at $2,639/oz After Strong U.S. ISM Data

On December 2, gold prices weakened, closing at $2,639/oz, following a better-than-expected U.S. Manufacturing Purchasing Managers’ Index (ISM Manufacturing PMI) of 48.4. This positive data boosted the U.S. dollar, which put downward pressure on gold prices.

On December 3, the U.S. will release the Job Openings and Labor Turnover Survey (JOLTS) data, with expectations of 7.49 million job openings.

Gold prices are expected to remain under pressure, as the U.S. dollar may continue to strengthen.

Tesla Shares Surge 3.4% After Roth MKM Upgrades Rating to “Buy”

Tesla’s stock rose 3.4% after analysts from Roth MKM upgraded their investment rating from “Neutral” to “Buy.” They believe that the close relationship between Tesla CEO Elon Musk and U.S. President-elect Donald Trump will benefit Tesla’s business in the long term.

Investors Eye Jerome Powell’s Remarks for Interest Rate Outlook

Global investors are closely watching the remarks of Jerome Powell, Chairman of the U.S. Federal Reserve, at the New York Times DealBook Summit in New York. The event is scheduled for Wednesday, December 4, at 1:45 PM EST (Thursday, December 5, at 1:45 AM Thai time). Investors are eager to hear any signals regarding the Fed’s interest rate policy direction.

U.S. to Tighten Semiconductor Equipment Exports to China

The U.S. government announced on Monday that it will implement new measures to restrict the export of semiconductor manufacturing equipment to China. This move is part of efforts to hinder China’s goal of developing artificial intelligence (AI) technology for use in the military sector.

OPEC+ to Extend Oil Production Cuts Until Q1 2025

OPEC and its allies, known as OPEC+, are expected to announce an extension of their oil production cuts until the end of the first quarter of 2025 during their meeting on December 5. This decision aims to support oil prices, extending the original plan which was set to end production cuts in December 2024.

Fed Member Signals Support for Rate Cuts, but Leaves Room for Holding Rates Steady

Christopher Waller, a member of the U.S. Federal Reserve’s Board of Governors, expressed his support for a potential interest rate cut during the Fed’s meeting on December 17-18. However, he emphasized that economic data released before the meeting could influence the decision, possibly leading the Fed to keep interest rates unchanged.

Trump Reaffirms Commitment to Block Nippon Steel’s Acquisition of U.S. Steel

On December 2, Donald Trump, the incoming U.S. President, reiterated his commitment to blocking the acquisition of United States Steel Corp by Nippon Steel Corp, a major Japanese steel manufacturer. He emphasized that he would take swift action on this matter after assuming office in January.

News for 4 December 2024

Gold’s Rebound Shows Weakness

On December 3, the price of gold slightly increased, closing at $2,643/oz, due to a slight weakening of the U.S. Dollar index, which dropped from 106.46 to 106.37, making gold more attractive.

Later, on December 4 at 22:00 (Thailand time), the U.S. services sector Purchasing Managers’ Index (PMI) will be announced, with an expected value of 55.7.

South Korean President Declares Martial Law, But Parliament Reverses the Decision

On the evening of December 3, South Korean President Yoon Suk Yeol declared martial law, raising concerns about political stability in the country. However, shortly afterward, the South Korean Parliament overturned the declaration. As a result, the KOSPI index of the South Korean stock market opened with a decline of 1.97%, reaching 2,450.76.

BOK Holds Emergency Meeting After South Korean President’s Martial Law Declaration

The Bank of Korea (BOK) held an emergency meeting on the morning of December 4, following the declaration of martial law by President Yoon Suk-yeol on the evening of December 3. The declaration was later reversed. The situation raised concerns about political stability in South Korea, affecting global financial market sentiment.

News for 6 December 2024

Gold Drops Sharply

On December 5, gold prices dropped significantly, closing at $2,631/oz, primarily pressured by the rise in U.S. Treasury bond yields.

On December 6, at 20:30 (ET), investors will be closely watching the U.S. non-farm payrolls and unemployment rate figures, with forecasts of 218k jobs added and an unemployment rate of 4.1%.

UnitedHealth Stock Drops 5.2% After CEO is Shot Dead

UnitedHealth’s stock fell 5.2%, significantly dragging down the Dow Jones index, after Bryan Thompson, CEO of UnitedHealthcare, a subsidiary of UnitedHealth Group, was shot dead. The news has raised concerns in the market, prompting companies in the healthcare insurance sector to reassess potential risks.

Macron Moves to Appoint New Prime Minister After Michel Barnier Resigns

French President Emmanuel Macron held consultations with political allies and parliamentary leaders yesterday to expedite the appointment of a new prime minister, following Michel Barnier’s official resignation. Barnier stepped down after the opposition passed a vote of no confidence in his government on December 4.

Japan Plans Trade Talks with Trump, Aiming to Lift Car Tariffs

Japanese Foreign Minister Takeshi Iwaya announced that Japan intends to initiate trade talks with Donald Trump, the incoming U.S. president. The discussions are expected to focus on reaching a memorandum of understanding to lift tariffs on automobiles and automotive parts.