Spotlight on CPI amid ongoing year-end rally 09/12/2024

HOT stories for today

Stocks on the move:

• DraftKings (DKNG): Shares of the sports betting leader slipped 1.3% after Senator Mike Lee (R-Utah) tweeted concerns over potential antitrust violations by DraftKings and FanDuel. Lee expressed support for Federal Trade Commission Chair Lina Khan's investigation into alleged anti-competitive practices involving both companies.
• Energy stocks: Oil-related stocks retreated as analysts forecast a crude surplus in 2025, despite OPEC+ delaying planned production increases. Notable declines included Diamondback Energy (FANG), down 3.4%, Halliburton (HAL), down 4.1%, and APA Corporation (APA), which dropped 1.9%.
• AMC Entertainment (AMC): The stock fell 9% following the company's announcement of plans to sell up to 50 million shares. This came after a spike in the previous session driven by a post from meme stock influencer "Roaring Kitty" on social platform X.

Watchlist: DKNG, APA, OXY, COIN, TSLA, AMC, ORCL

Today's action

• Asia-Pacific markets showed mixed results Monday as investors digested updated economic growth figures from Japan and China's November inflation data. China's consumer price index rose 0.2% year-on-year in November, down from October's 0.3% and falling short of Reuters' forecast of 0.5%, according to the National Bureau of Statistics.  South Korea's Kospi index dropped over 2% following President Yoon Suk Yeol's survival of an impeachment vote over the weekend, as political unrest stemming from his brief martial law declaration continues to affect the nation. Geopolitical tensions escalated with reports that Syrian President Bashar al-Assad fled to Russia after a rebel offensive reached Damascus, ending 50 years of Assad family rule in Syria.
• In the U.S., stock futures remained stable Sunday night following a third consecutive winning week for the S&P 500 and Nasdaq Composite. Investors are anticipating key inflation data, including the November consumer price index due Wednesday, which is expected to indicate a slight increase in pricing pressures. October wholesale inventories data, set for release Monday at 10 a.m. ET, is also on the radar. Corporate earnings continue, with Oracle slated to announce its results after the market closes.

Bitcoin
 

• Bitcoin reached $100,000 for the first time and again, while President-elect Donald Trump tapped crypto advocate Paul Atkins to replace Gary Gensler as SEC chair. Meanwhile, the Cardano Foundation's X account was hacked, El Salvador’s Bitcoin gains exceeded $330 million, and frustration grew over the potential renomination of SEC Commissioner Caroline Crenshaw.
• The Cardano Foundation’s X account was breached on Dec. 8, with hackers promoting a fake token, "ADAsol," which saw $500,000 in trading volume before collapsing. Malicious posts have since been removed, and users are urged to avoid interacting with the account until resolved.
• El Salvador celebrated Bitcoin's $100,000 milestone, with President Nayib Bukele sharing unrealized gains of $333 million on the country’s $270 million Bitcoin investment, none of which has been sold. Crypto leaders criticized SEC Commissioner Caroline Crenshaw ahead of a Dec. 11 vote on her renomination. Known for opposing Bitcoin ETFs and taking an anti-crypto stance, Crenshaw's potential reappointment has sparked backlash from industry executives and advocates.
  Watchlist: Bitcoin: 90 000-104 000, Ethereum: 3000-3923, Solana: 220-265

Forex

• The Japanese Yen remains in a tight range, with USD/JPY consolidating below the 150.00 level. The Yen edged higher following an upward revision to Japan’s Q3 GDP. However, skepticism about the Bank of Japan's willingness to pursue further interest rate hikes in December limits the JPY’s gains. Additionally, a modest rebound in the US Dollar is providing some support to the USD/JPY pair, while softer US bond yields continue to weigh on the greenback, offering limited relief to the Yen.
• The EUR/USD pair trades near 1.0550 with a mild bearish tone during Monday’s Asian session. Market participants are speculating on a potential December rate cut by the US Federal Reserve, while the European Central Bank is expected to announce a further 25 basis point reduction during its Thursday meeting. Investors are awaiting Wednesday’s US Consumer Price Index (CPI) inflation report and the ECB's rate decision on Thursday, seeking further clarity on the monetary policy outlook.
  Watchlist: EUR/USD: 1.0300-1.0650, USD/JPY: 149-157

Basic Materials

• Gold prices edge higher but struggle to sustain gains above the $2,650-2,655 resistance zone, maintaining the range seen over the past two weeks. Speculation about another Federal Reserve rate cut in December supports the precious metal, alongside geopolitical tensions and trade war fears boosting its safe-haven appeal. However, expectations of a less dovish Fed, driven by hopes of inflationary pressures from US President-elect Donald Trump's policies, bolster the US Dollar and limit further upside for gold.
• WTI crude oil recovers from a multi-week low, toward the mid-$67.00s after snapping a three-day losing streak. Rising tensions in the Middle East provide support for the commodity, but lingering concerns over slowing demand in China and a global supply glut may cap gains. WTI currently trades slightly below the $67.50 mark, up 0.60% for the day, as buyers show renewed interest at the week's start.
  Watchlist: GOLD 2530-2790, US Oil: 65.00-73.00

The TEFS Analyst team wishes you a successful day!