Markets bid farewell to 2024 in the red 02/01/2025

HOT stories for today

Stocks on the move:

• MicroAlgo Inc. (MLGO -6%): The company announced a FULL adder operation utilizing CPU registers within quantum gate computers. Shares initially surged over 35% before retreating to close in negative territory.
• Cemtrex Inc. (CETX -8%): Fourth-quarter revenue grew 9% to $18.1 million, exceeding analysts' estimates of $16.39 million. This growth was driven by strong performance in the Advanced Industrial Services (AIS) segment.
• Nutriband (NTRB +12.7%): Shares rose sharply after the company announced it anticipates an expedited review for its AVERSA Fentanyl abuse-deterrent opioid patch, potentially securing regulatory approval by the end of 2025. The announcement follows last week’s extension of its Chinese patent to Macao for the same technology.
• Precigen, Inc. (PGEN +22%): The biotech company reported completing its rolling submission for a biologic license application (BLA) for PRGN-2012, a gene therapy aimed at treating recurrent respiratory papillomatosis (RRP) in adults.

Today’s action

• Asian stocks showed mixed performance on Thursday as major markets reopened after the New Year holiday. China led the losses, with the Caixin/S&P Global manufacturing PMI for December falling to 50.5, below the expected 51.7. Meanwhile, Singapore's annual GDP growth reached 4%, highlighting regional economic resilience. European markets are poised to start 2025 on a positive note, while US stock futures edged higher, with the Dow Jones Industrial Average up 162 points (0.38%), S&P 500 futures rising 30 points (0.51%), and Nasdaq-100 futures climbing 154 points (0.73%). Investors are optimistic about regaining the momentum that brought two consecutive years of 20%-plus gains for the major indexes.
• Adding to global concerns, a deadly New Year’s Day truck attack in New Orleans, under investigation as a potential terrorist act, has raised security anxieties. The FBI suggested the suspect might not have acted alone. The holiday-shortened week has seen limited economic data, but weekly jobless claims due Thursday will provide fresh insight into the labor market's health.

Wahtclist: TSLA, COIN, MSFT, META, NVDA, PLTR, CVX

Bitcoin
 

• Bitcoin’s recent performance raises questions about whether the bull market is nearing its peak. In a December 29, 2024, report, 10x Research pointed to technical patterns, including a “shooting star” candlestick—a bearish signal seen in 2017 and 2021. After reaching a high of $108,364 on December 16, Bitcoin dropped to $92,000, with analysts emphasizing the importance of the $90,000–$92,000 support range.
• A January rally, possibly linked to Trump’s inauguration, is anticipated, but profit-taking by month-end could confirm bearish trends. While the bull market isn’t definitively over, heightened volatility with sharp rallies and sell-offs is expected in 2025. Other analysts, like Crypto Birb from The Birb Nest, predict Bitcoin could reach $225,000 by mid-2025 before entering a bear market in 2026. Investors face tough decisions between riding potential rallies or securing profits, with disciplined risk management crucial for navigating what could be a pivotal year.
  Watchlist: Bitcoin: 91 000-108 000, Ethereum: 3000-3600, Solana: 174-204

Forex
 

• EUR/USD struggles as the European Central Bank (ECB) maintains a dovish stance on interest rates for 2025. The ECB is expected to lower the Deposit Facility rate to 2% by June, which is considered the neutral rate. Meanwhile, the US Dollar Index reached multi-year highs, driven by the Federal Reserve's hawkish policy outlook. EUR/USD has declined for the fourth consecutive day, trading near 1.0350 during Thursday’s Asian session.
• USD/JPY strengthens to around 157.30 in early Thursday trading. The US Dollar is supported by expectations of fewer Fed rate cuts this year and anticipation of higher US interest rates. BoJ Governor Ueda has indicated progress toward Japan’s price target, although Japanese markets are closed for the remainder of the week. Investors will focus on the December US S&P Global Manufacturing PMI, due Friday, for further direction.
  Watchlist: EUR/USD: 1.0300-1.0460, USD/JPY: 155-158.50
   

Basic Materials
 

• Gold prices continue their upward momentum, extending gains after an impressive 27% rally in 2024, the strongest annual performance since 2010. On Thursday, gold (XAU/USD) rose for the third consecutive session, supported by a retreat in the US Dollar Index from its multi-year high of 108.58 earlier this week. Factors driving gold’s rise include US monetary easing, geopolitical tensions, and record central bank purchases. However, the Fed’s hawkish stance on monetary policy could challenge the non-yielding metal in the future.
• West Texas Intermediate (WTI) crude oil traded around $71.60 during Thursday’s early European session, posting modest gains. The API’s weekly report revealed a 1.442 million barrel drop in US crude inventories, providing support for prices. However, weak Chinese demand and expectations of a slower Fed easing cycle may limit further upside for WTI.
  Watchlist: GOLD 2530-2750, US Oil: 65.00-72.00

The TEFS Analyst team wishes you a successful day and a Happy NEW YEAR!