Weekly News Recap 23 – 27 December 2024

News for 23 December 2024

Gold Rebounds, But Gains Are Limited

Last week, the Core PCE data was released, coming in below expectations at 0.1%, which led to a weaker dollar and supported a rise in gold prices, closing at $2,623/oz.

On December 23, at 22:00, the U.S. Consumer Confidence Index will be released, with expectations of 112.9. The rebound in gold may remain limited.

Dow Jones Futures Up 100 Points After U.S. Avoids Government Shutdown

Dow Jones futures rose by more than 100 points in the early morning of December 23, supported by the U.S. successfully avoiding a government shutdown after President Joe Biden signed a temporary budget bill into law.

Trump Threatens to Seize Panama Canal – Hints at Allowing TikTok to Operate

On December 22, U.S. President-elect Donald Trump threatened that the U.S. might reclaim the Panama Canal, accusing Panama of exploiting the situation by charging excessive fees. In response, Panama’s President José Raúl Mulino immediately reacted.

Additionally, Trump hinted that he might allow TikTok to continue operating in the U.S. temporarily after the app helped his campaign achieve billions of views.

Survey Predicts U.S. Stock Market Will Continue to Rise in 2025

A survey by LSEG IBES indicates that investors expect the U.S. stock market to continue rising in 2025 after two consecutive years of gains. This is supported by a strong economy that bolsters corporate profits, moderate interest rates, and economic support policies from U.S. President-elect Donald Trump.

ONS Reports UK GDP Did Not Grow in Q3 2024

The UK’s Office for National Statistics (ONS) reported on December 23 that the country’s GDP did not grow in Q3 2024, marking a downward revision from the initial estimate, which had forecasted a 0.1% growth.

News for 24 December 2024

Gold Weakens, Expected to Trade in Narrow Range Before Christmas

On December 23, gold prices weakened, closing at $2,612 per ounce, after the Dollar Index rebounded from 107.81 to 108.08, strengthening the dollar and pressuring gold prices.

On December 24 at 10:00 PM, the U.S. Richmond Manufacturing Index will be announced, with a forecast of -10. It is expected that gold prices will trade within a narrow range.

‘Magnificent Seven’ Stocks Drive Dow Jones and Nasdaq to Third Consecutive Positive Close

Stocks from the “Magnificent Seven” group were a key driver in the Dow Jones and Nasdaq closing in positive territory for the third consecutive day, also helping the S&P 500 close higher for the second straight day. Nvidia’s stock rose 3.7%, Meta Platforms gained 2.5%, and Tesla saw a 2.2% increase. Additionally, Amazon, Apple, and Alphabet are also closed in green.

New York Stock Market Enters Santa Claus Rally, S&P 500 Expected to Rise by an Average of 1.3%

The New York stock market is entering a period historically known for strong performance. According to data from the Stock Trader’s Almanac, since 1962, the S&P 500 has had an average return of 1.3% during the last five trading days of the year, coupled with the first two days of the following year. This period referred to as the “Santa Claus Rally,” typically sees an increase in the index during this time.

BOJ Keeps Interest Rates Unchanged, Emphasizes Caution on Future Rate Hikes

The Bank of Japan (BOJ) released its meeting report on December 24, stating that the BOJ board agreed to maintain interest rates as long as the economy moves in line with expectations. However, some members highlighted the need for caution regarding future rate hikes, citing uncertainties surrounding U.S. economic policies.

Starbucks Workers Union Expands Strike to Over 300 Locations

The Workers United union, representing Starbucks employees from 525 locations nationwide, announced that the ongoing strike at Starbucks stores in the U.S. may expand to over 300 locations on December 24. Over 5,000 workers are expected to participate in the strike, which is set to last for five days, concluding on Christmas Eve.

News for 25 December 2024

Dow Jones, Nasdaq, and S&P 500 Close Higher, Kicking Off the Santa Claus Rally

The Dow Jones and Nasdaq closed higher for the fourth consecutive day, while the S&P 500 posted a third consecutive gain on Tuesday, marking the beginning of the “Santa Claus Rally.” Statistically, this rally typically occurs during the last five trading days of the current year, plus the first two trading days of the new year.

American Airlines Stock Rises 0.6%

American Airlines stock closed 0.6% higher after initially dropping during the day due to news that the company had temporarily suspended all domestic flights in the U.S. on December 24th due to technical issues. The incident occurred during a peak period for American travel during the Christmas holiday season.

Taiwan Blocks Uber’s Acquisition of Foodpanda

Bloomberg reported on December 25, citing Taiwan’s Central News Agency (CNA), that Taiwan has blocked Uber Technologies’ acquisition of Foodpanda from Delivery Hero in Taiwan, valued at $950 million. The move was made due to concerns over unfair competition.

News for 26 December 2024

Gold Rebounds This Morning

On December 25, the market was closed for Christmas.

On December 26, at 20:30, the U.S. weekly jobless claims data will be announced, with an expected 223,000 claims.

Gold prices have rebounded this morning, but the rebound is expected to be limited.

Elon Musk’s xAI Raises $6 Billion in Series C Funding

TechCrunch reported on Wednesday, December 25, that xAI, Elon Musk’s AI company, successfully raised $6 billion in its Series C funding round. xAI announced this week that investors participating in the round include Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and others.

Japan’s Government Expects Full Economic Recovery in the Next Fiscal Year

The Japanese government revealed on December 26 that the country’s economic output is expected to return to full potential in the next fiscal year for the first time in seven years, due to a tight labor market. The Cabinet Office forecast that Japan’s output gap, which measures the difference between actual output and potential economic output, will be +0.4% in the fiscal year starting in April.

At the same time, the core CPI in Tokyo, excluding fresh food prices, rose by 2.4% in December compared to the previous year, lower than economists’ forecast of a 2.5% increase but higher than the 2.2% increase in November. As a result, markets continue to anticipate that the Bank of Japan (BOJ) may raise interest rates soon.

News for 27 December 2024

Gold Shows a Slight Rebound but Below Resistance Levels

On December 26, the price of gold rose and closed at $2,633 per ounce, driven by a slight weakening of the Dollar Index, which dropped from 108.17 to 108.07. The dollar’s decline supported a modest increase in gold prices.

However, it is estimated that the rebound in gold prices may be limited.

US10Y Hits 7-Month High, Impacting Markets and Financial Costs

The US 10-year Treasury yield surged to 4.64%, the highest level since early May. This increase is impacting financial markets as the US10Y serves as a benchmark for pricing global bonds and U.S. mortgage rates. Consumers will face higher mortgage costs, while companies will experience elevated debt servicing expenses. This could lead to reduced corporate investments and lower dividend payouts to shareholders.