Shortened week closed in the red 30/12/2024

HOT stories for today

Stocks on the move:

• Rigetti Computing (RGTI) soared 11% as the quantum computing sector continued its strong year-end rally, with shares now up 1,674% year-to-date.
• MicroStrategy (MSTR) slipped 3%, despite early Friday gains when Bitcoin briefly rose above $96,000
• Amedisys (AMED) and UnitedHealth (UNH) saw Amedisys shares rise 5% while UnitedHealth was fractionally lower after a new waiver agreement extended the deadline for their $3.3 billion merger.
• Red Cat Holdings (RCAT) dropped 9% after an earlier rally on Friday morning but remains up 1,275% year-to-date, driven by renewed interest in the drone sector following sightings in the Northeast.

Today’s action

• Most Asian stocks declined after U.S. equities fell on Friday as investors adjusted positions amid year-end uncertainty. In South Korea, markets were rattled after lawmakers impeached acting President Han Duck-soo, marking the nation’s second ousted leader since a martial decree earlier this month. Adding to the turmoil, South Korea experienced its deadliest airline disaster on Sunday when a Jeju Air plane crashed at Muan International Airport, killing 179 people. According to FactSet, Jeju Air shares hit an all-time low on Monday, dropping 8.53%.
• Stock futures were slightly lower early Monday as the final trading sessions of 2024 approached. Dow Jones Industrial Average futures dipped 0.19%, S&P 500 futures fell 0.16%, and Nasdaq-100 futures remained flat. This week is light on economic data, with markets closed Wednesday for New Year’s Day. Notable releases include Chicago PMI and pending home sales data due later today.

Wahtclist: NVDA, META, RGTI, MSTR, UNH, OXY, APA, COIN

Bitcoin
 

• Sunday was a volatile day for Bitcoin, with prices dipping to a low of $92,941 per coin. The broader crypto market declined by 1.61%, while Bitcoin itself lost 1.42% in the past 24 hours. Trading volume remained subdued due to the holiday period, as rising USDt dominance suggested investors were moving away from risk-on assets, preferring to "keep their powder dry" for future opportunities.
• Technical indicators, including a classic head-and-shoulders chart pattern, hint at a potential price correction toward $80,000 in the coming weeks. The long-term trajectory of Bitcoin largely hinges on the incoming Trump administration's regulatory stance and the Federal Reserve’s monetary policy in 2025, adding to market uncertainty. Predictions for Bitcoin's future price vary widely. Crypto mining company Blockware recently forecasted a potential range of $150,000 to $400,000 in the new year, reflecting the asset's unpredictable nature and its dependence on macroeconomic factors.
  Watchlist: Bitcoin: 92 000-108 000, Ethereum: 3000-3600, Solana: 174-204

Forex

• The Japanese yen (JPY) will strengthen against the US dollar (USD) on Monday as traders anticipate a Bank of Japan (BoJ) interest rate hike in January. This expectation follows Tokyo’s recent CPI inflation data and better-than-expected Jibun Bank Manufacturing PMI, which rose to 49.6 in December, beating forecasts and prior readings. USD/JPY remains subdued as the JPY gains momentum on these developments.
• Meanwhile, EUR/USD continues to climb, trading around 1.0430 during Monday’s Asian session. The pair has extended its gains for the third consecutive day, supported by expectations that the European Central Bank (ECB) may delay further rate cuts amid rising inflation. ECB Governing Council member Robert Holzmann highlighted that Trump’s tariffs have slowed overall growth but added inflationary pressure. The latest FOMC Dot Plot also signals only two rate cuts in 2025, down from the previous projection of four, further influencing market sentiment.
  Watchlist: EUR/USD: 1.0300-1.0460, USD/JPY: 155-158.50

Basic Materials

• Oil prices rose over 1% on Friday, buoyed by expectations of another drawdown in U.S. crude inventories as the final oil data points for 2024 are released. However, supply is projected to outpace demand by approximately 1 million barrels per day in 2025, with non-OPEC+ supply, including the U.S., continuing to grow. Analysts suggest President-elect Trump’s pro-oil policies, such as deregulation and faster permitting, could further boost U.S. crude production, though they may face headwinds from a persistently oversupplied global market.
• Meanwhile, gold prices advanced as risk aversion increased ahead of the incoming Trump administration. XAU/USD has recovered losses from the previous session, supported by safe-haven demand, though lighter trading volume is observed due to the holiday period. Gold’s upside may be limited by expectations of fewer Fed rate cuts in 2025. The market continues to watch geopolitical tensions, including Israeli attacks on Gaza, for further impacts on risk sentiment and precious metals.
  Watchlist: GOLD 2530-2750, US Oil: 65.00-72.00

The TEFS Analyst team wishes you a successful day!