Weekly News 2023/12/11-2023/12/15

 U.S. stocks closed higher on Friday, with the Dow up 700.53 points, or 2.13%, to U.S. stocks closed mixed on Friday. The Dow Jones Industrial Average rose 56.81 points, or 0.15%, to 37305.16 points; the Nasdaq rose 52.36 points, or 0.35%, to 14813.92 points; the S&P 500 Index fell 0.36 points, or 0.01%, reported 4719.19 points. The three major U.S. stock indexes performed strongly this week, all recording their seventh consecutive week of gains. The Dow Jones 37305.1602, 56.81, 0.15% index rose 2.93% for the week. The S&P 500 index rose 2.49%, and the Nasdaq Composite Index rose 2.85%. The Dow hit new intraday and closing record highs. Federal Reserve Chairman Jerome Powell said on Wednesday that “an interest rate cut is on the horizon,” but a key Fed official refuted his view on Friday, saying that a rate cut has not yet been considered and that interest rates will need to be raised again if necessary.

The S&P 500 posted its longest weekly winning streak since 2017. The Dow Jones posted its longest weekly winning streak since 2019. The Dow Jones Industrial Average broke through the 37,000-point mark for the first time on Wednesday and hit a record high, and then set new record highs in two consecutive trading days on Thursday and Friday. The S&P 500 is currently less than 1.6% away from its highest closing record 4796.56 points set in January 2022. The Nasdaq is still 8% away from its all-time high closing record 16057.44 points set in November 2021, and 9% away from its intraday high record 16212.23 points.

The Federal Reserve acknowledged on Wednesday that its efforts to curb inflation are working and signaled it would cut interest rates three times in 2024. The clear shift in its policy stance boosted investor sentiment and became the main factor driving the stock market's rise this week.

 Intel (NASDAQ: INTC) Gao Yu, general manager of Intel's technology department in China, said at Intel's new product launch on December 15 that the new Core Ultra processor is the hardware cornerstone of AI PC and is capable of handling large language models with up to 20 billion parameters. The Core Ultra processor integrates the Neural Network Processing Unit (NPU) into a PC processor for the first time. Intel said it is working closely with more than 100 software manufacturers to bring hundreds of AI-enhanced applications to the PC market.

Citigroup (NYSE: C) will shut down its municipal bond business and plans to complete the divestment by the end of the first quarter. Citigroup will shut down its municipal bond business. The bank believes the business has fallen significantly in its ranking in underwriting state and local debt and is no longer viable given its commitment to improving the company's overall returns. Citigroup plans to complete the divestment by the end of the first quarter, when most municipal sales, trading and banking staff will leave Citigroup in the coming months, a move that will affect about 100 employees.

General Motors (NYSE: GM) will lay off 1,300 workers at two plants in Michigan. General Motors will cut 1,314 jobs at two Michigan plants as it halts production of certain vehicles. General Motors issued a warning notice Thursday that it would lay off 945 workers starting Jan. 1 at its Orion Assembly Plant in Orion Township. The layoffs are related to GM's announcement last October that it would delay production of two all-electric pickup trucks at the plant by a full year. Starting at the end of this year, GM will idle the relevant plants and transfer about 1,000 workers to other GM plants in the state.

 Bitcoin price surged to $42,873, driven by optimism stemming from the Federal Reserve‘s stance and discussions surrounding the approval of a Bitcoin spot ETF. BlackRock interpreted the FOMC minutes as a “green light” for investors, helping to boost positive market sentiment. The International Monetary Fund has called for strong cryptocurrency regulation, highlighting the need for infrastructure development. Meanwhile, the U.S. Commodity Futures Trading Commission’s approval of Bitnomials vertical integration strategy marks an important milestone that has the potential to bolster institutional trust in the cryptocurrency market.

Bitcoin maintains its bullish stance and is currently trading around $42,700 with a market cap of around $840 billion. The 50 EMA at $42,250 indicates a short-term bullish bias, and the RSI at 65 indicates cautious optimism. Resistance is found at $44,650 and $47,900, while support is found at $40,660 and $37,960. The short-term outlook remains bullish, with an eye on resistance, especially $44,650. It is crucial for investors to monitor price action around Fibonacci retracement levels, as these are potential turning points.

The U.S. Securities and Exchange Commission (SEC) has delayed a decision on the application for Invesco Galaxys spot Ethereum exchange-traded fund (ETF). Originally expected to be December 23, 2023, the new deadline is now February 6, 2024. The SEC said it needs more time to thoroughly review the proposal. The delay is in line with a broader trend of Ethereum ETF applications, with major institutions such as BlackRock, ARK, Fidelity, VanEck and Hashdex awaiting final decisions. Recent SEC meetings with prominent Bitcoin ETF issuers indicate a renewed focus on regulatory considerations that could impact the broader cryptocurrency market.

 On Friday, after trading sideways in the first half of the week, gold prices gained on Wednesday after the Federal Reserve updated its interest rate forecasts and Federal Open Market Committee Chairman Jerome Powell's press conference stated that it would not consider further interest rate hikes. Strong buying has seen the central bank predicting a 75 basis point interest rate cut in 2024. The news pushed gold back above $2,000 an ounce, where it continued to trade on Friday afternoon. Hawkish comments from New York Fed President Williams triggered a rebound in U.S. Treasury yields and made it difficult for gold to maintain its bullish momentum. The settlement price of COMEX February gold futures closed down 0.45% at $2,035.7 per ounce. Spot gold closed 0.83% at $219.60 per ounce.

While gold prices have established a healthy long-term upward trend, some analysts have warned that a breakout is unlikely next week as financial markets will see thin trading with most participants now focused on the holidays.

Darin Newsom, senior market analyst at Barchart.com, said people are in no rush to buy as the holidays approach. Without any new bullish momentum expected before the New Year, gold buying momentum looks a bit exhausted.

Gold prices have risen about 12% since the beginning of the year. Commerzbank strategists analyze gold's trajectory in 2024. They believe that the upcoming interest rate cut will be positive for gold, which is why we expect gold prices to rise further to $2,150 per ounce in the second half of next year. With the Fed's interest rat

Markets tumbled after the New York Federal Reserve's manufacturing survey showed new orders fell for a third consecutive month, a possible sign of weaker oil demand in the year ahead. Brent and U.S. crude futures ended slightly lower after a tug-of-war that saw prices drop more than $1 a barrel on Friday as traders tried to reconcile mixed signals about oil demand. WTI January crude oil futures closed down $0.15/barrel, or 0.21%, on Friday to $71.43/barrel, up 0.28% this week. Brent crude oil futures fell $0.06 per barrel, or 0.08%, to $76.55 per barrel on Friday. As of press time, it was currently trading at US$76.76/barrel, a decrease of 0.12%. What triggered the sell-off was the sharp decline in New York manufacturing data, said Phil Flynn, an analyst at Price Futures Group.

Federal Reserve Chairman Jerome Powell said interest rate hikes aimed at curbing inflation are likely coming to an end, but further increases remain possible. Oil prices rose for a third straight day, boosted by the outcome of the Federal Reserve meeting and dovish comments from Chairman Jerome Powell. The Federal Reserve has confirmed to the market that it will cut interest rates in 2024, which is a sign that the market wants to see. Lower interest rates in the future could mean a boost in sentiment and economic activity, triggering an increase in demand for crude oil.

On the supply and demand side, gains at the top remain limited as global oil demand continues to decline faster than the Organization of the Petroleum Exporting Countries (OPEC) limits production. OPEC has announced additional supply curbs until the first quarter of 2024, but energy traders remain skeptical that OPEC can successfully curb oil production to meet shaky demand.

 On Friday, the U.S. dollar suffered heavy losses this week and returned to its August 10 position under pressure from increasing prospects of interest rate cuts next year. The Federal Reserve's dovish shift and risk-on sentiment continue to weigh heavily on the dollar. USD/CAD fell further below 1.3400, its lowest level since mid-August, as the US dollar continued to sell off and the recent good recovery in oil prices supported the Canadian dollar. CAD/CNY continues to climb to its early November position. The U.S. dollar index, which measures the U.S. dollar against six major currencies, rose 0.53% on Friday and is now at 102.51.

The latest interest rate forecast released by Federal Reserve officials on Wednesday showed that interest rates are expected to be cut in 2024, causing the dollar to fall sharply.

The Federal Reserve has signaled a turnaround, with officials releasing forecasts for a series of rate cuts next year. Federal Reserve Chairman Jerome Powell said he was ready to resume raising interest rates if price pressures return, but he also said the topic of easing policy was raised at this week's meeting. Earlier this week, traders priced in positive expectations for a rate cut, with the first rate cut likely to occur in March and a 145 basis point cut in December.

USD/CAD fell for the third consecutive trading day, falling to its mid-August position, now trading at 1.33648, down 0.30%. On Friday, Canada released a series of economic data, among which the annual rate of wholesale inventory in October was 2.1%, the previous value of 0.9%. The Canadian dollar has appreciated recently. Still, economists at National Bank of Canada dont expect the Canadian dollar to strengthen further. They said, There is little room for the Canadian dollar to appreciate before the second half of 2024.

OnePro Special Analyst

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