Bitcoin surpasses $100,000 milestone 05/12/2024

HOT stories for today

 

Stocks on the move:

• American Eagle Outfitters (AEO) shares fell 12% after the company reported third-quarter revenue below expectations, issued a weak holiday forecast, and reduced its full-year sales outlook. 
• Five Below (FIVE) stock rose 11% after posting third-quarter revenue of $844 million, exceeding the $799 million estimate by analysts polled by LSEG. 
• Synopsys (SNPS) shares dropped more than 6% following a fiscal first-quarter forecast and revenue guidance that came in below analysts’ expectations. 
• SentinelOne (S) stock declined over 11% after weaker-than-expected third-quarter earnings, with adjusted breakeven earnings slightly below the 1 cent per share profit forecast by LSEG.

Watchlist: AEO, FIVE, S, COIN, KR, MSFT, NVDA, TD, BMO

Today’s action

• Asia-Pacific markets displayed a mixed trend on Thursday, following record-setting performances in U.S. stock benchmarks despite global political uncertainty. Investors remain focused on developments in South Korea and France. In South Korea, lawmakers moved to impeach President Yoon Suk Yeol shortly after he declared martial law, citing threats from North Korea and domestic political tensions.Japan’s Nikkei 225 gained 0.31%, while the Topix index stayed mostly unchanged. Hong Kong’s Hang Seng Index futures dropped over 1%, and South Korea’s Kospi slipped by 0.44%.
• U.S. stock futures showed little movement Wednesday night after a record-breaking session in the markets. Futures tied to the Dow Jones Industrial Average dipped 18 points, or 0.04%, while S&P 500 futures declined 0.08%, and Nasdaq-100 futures edged 0.1% lower. Investors are looking ahead to significant economic updates this week. Initial jobless claims for the week ending November 30 are set to be released Thursday morning at 8:30 a.m. ET. Additionally, several key earnings reports are on the agenda for Thursday. Dollar General, Signet Jewelers, and Kroger will release their results before the market opens, while Hewlett Packard Enterprise and Ulta Beauty are scheduled to report after the close.

Bitcoin

• Bitcoin dominance—a metric indicating BTC’s share of the crypto market’s total value—has surged as the asset reached a six-figure all-time high on Dec. 5, while most altcoins lagged behind in gains.Bitcoin (BTC) dominance rose 4.4% over the past day, reaching 57% as the cryptocurrency soared to a record $104,000, according to TradingView. This marks a recovery from its dip to 54.7% on Dec. 4, after falling from a three-and-a-half-year high of 61.8% on Nov. 21.
• "Almost as if BTC wanted to remind everyone it’s still the king after altcoins stole the spotlight," said analyst Income Sharks in a Dec. 5 post on X. Altcoins had experienced significant rallies over the past week, with Binance Coin (BNB), Tron (TRX), and XRP reaching milestones, including a seven-year high for XRP, while Bitcoin consolidated near $95,000. However, BTC’s explosive climb into six-figure territory on Dec. 5 shifted market dynamics, boosting its dominance once more.
  Watchlist: Bitcoin: 90 000-104 000, Ethereum: 3000-3923, Solana: 220-265

Forex

• EUR/USD edges higher, aiming to hold above 1.0500 during European trading hours on Thursday. The pair shows modest gains as investors look past the widely expected collapse of Michel Barnier's three-month government following a no-confidence vote by a coalition of Far Right and Left-wing parties. Market participants anticipate the ECB will lower its Deposit Facility Rate by 25 basis points to 3% next week. Attention now shifts to upcoming US Non-Farm Payroll (NFP) data for clues on future interest rate decisions.
• The Japanese Yen (JPY) finds renewed demand as uncertainty surrounds a potential December rate hike by the Bank of Japan (BoJ). A weaker US Dollar adds further pressure on USD/JPY, despite dovish comments from BoJ policymaker Nakamura. Expectations for a less dovish stance by the Federal Reserve lend support to US bond yields, potentially limiting the JPY's upside. The JPY extends its intraday gains in the European session, reversing losses against the US Dollar overnight. Speculation about a possible BoJ rate hike this month, alongside ongoing geopolitical tensions and concerns over President-elect Donald Trump's proposed tariffs, have boosted demand for the safe-haven Japanese currency.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 150-157

Basic Materials

• WTI crude oil prices edge lower for the second consecutive day on Thursday, erasing much of the week’s earlier gains. The commodity trades below the mid-$68.00 range, down 0.30% during the Asian session. However, concerns over potential supply disruptions due to geopolitical tensions provide some underlying support. Traders now await the outcome of the OPEC+ meeting later today, as well as the upcoming US Non-Farm Payroll (NFP) report for further direction.
• Meanwhile, gold (XAU/USD) struggles to establish a clear near-term trend, trading within a familiar range during the first half of Thursday’s European session. Persistent geopolitical risks, including the ongoing Russia-Ukraine conflict, fears of escalating trade wars, and political instability in France and South Korea, continue to bolster demand for the safe-haven metal. Additionally, a weaker US Dollar lends further support to gold prices.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!