Expect New Record Highs on Wall Street Thanks to Fed Policies
The current state of central banks, along with declining inflation in the United States and Jerome Powell's comments hinting at a possible rate cut next year, led to a series of record highs in financial markets this week.
Risk appetite remains high ahead of the Christmas break, a traditionally favorable time for equity investments.
As we do each week, we will take a look at the latest developments in the macroeconomic landscape, the energy sector, currencies, and equity markets.
A brief but comprehensive overview to keep you informed.
US Interest RatesUS Interest Rates
Crude Oil CL prices are finally recovering this week, although the increase is less than other risky assets that continue their upward trend that began in November.
However, it appears that the string of seven consecutive weeks of declines has come to a halt.
The latest OPEC report provided support for this recovery, as the cartel forecasts record demand next year.
Despite economic uncertainties, demand is estimated to increase by about 2.2 million barrels per day, bringing the market into a deficit state as OPEC+ continues its efforts to reduce production.
In contrast, the International Energy Agency's forecast is less optimistic as it still predicts a surplus in the oil market in 2024 despite a demand growth forecast of 1.1 mbpd.
One of the major stories of the week was Rivian (NASDAQ:RIVN) Automotive Inc. RIVNpfizer (+18%), the electric vehicle manufacturer that experienced strong growth after announcing a business partnership with AT&T (NYSE:T), the telecommunications giant.
This partnership will see Rivian supply its vans and pickup trucks for AT&T's fleet of vehicles by the end of the year.
As part of the agreement, AT&T will also provide network connectivity in Rivian's cars.
In the wake of declining demand for the anti-Covid vaccine, Pfizer Inc (NYSE:PFE) PFE has warned the market that earnings and sales for 2024 will not meet Wall Street expectations.
Investors are also ignoring the major $43 billion acquisition of innovative cancer specialist Seagen, as it will not make up for lost revenues from Covid.
To address this situation, Pfizer has announced 500 layoffs and future savings of $3.5 billion.
After eight weeks of consecutive increases, the price of Bitcoin BTC/USD dropped 2.5 percent from the previous Monday, falling back below $42,000 at the time of this writing.
After experiencing a 56 percent increase in just two months, many investors in the cryptocurrency market are making their profits on BTC, which may explain this week's slowdown.
Meanwhile, the most anticipated event remains the approval of a Bitcoin Spot ETF by the U.S. Securities and Exchange Commission (SEC).
Many industry experts believe that the first positive responses on the approval of these products could come early next year.
In conclusion, the atmosphere continues to be full of positivity, as typical of the Christmas season.
Fisker Inc ChartFisker Inc Chart
The year 2023 ended with a real twist from the Fed.
Not even the most unabashed optimist could have dreamed of such a favorable scenario. Members of the Monetary Policy Committee have revised their individual positions since September.
Goodbye high rates, A real boon for stock markets.
My positions remain firm on the Chinese Futures Hang Seng HK50 index and Fisker (NYSE:FSR) FSR stock where I have chosen on both the accumulation buy mode. However, it is important to note that I am in a bearish position on GC Gold as I anticipate a descent which will be explained in more detail in the next article.
Risk appetite remains high ahead of the Christmas break, a traditionally favorable time for equity investments.
As we do each week, we will take a look at the latest developments in the macroeconomic landscape, the energy sector, currencies, and equity markets.
A brief but comprehensive overview to keep you informed.
US Interest RatesUS Interest Rates
Crude Oil CL prices are finally recovering this week, although the increase is less than other risky assets that continue their upward trend that began in November.
However, it appears that the string of seven consecutive weeks of declines has come to a halt.
The latest OPEC report provided support for this recovery, as the cartel forecasts record demand next year.
Despite economic uncertainties, demand is estimated to increase by about 2.2 million barrels per day, bringing the market into a deficit state as OPEC+ continues its efforts to reduce production.
In contrast, the International Energy Agency's forecast is less optimistic as it still predicts a surplus in the oil market in 2024 despite a demand growth forecast of 1.1 mbpd.
One of the major stories of the week was Rivian (NASDAQ:RIVN) Automotive Inc. RIVNpfizer (+18%), the electric vehicle manufacturer that experienced strong growth after announcing a business partnership with AT&T (NYSE:T), the telecommunications giant.
This partnership will see Rivian supply its vans and pickup trucks for AT&T's fleet of vehicles by the end of the year.
As part of the agreement, AT&T will also provide network connectivity in Rivian's cars.
In the wake of declining demand for the anti-Covid vaccine, Pfizer Inc (NYSE:PFE) PFE has warned the market that earnings and sales for 2024 will not meet Wall Street expectations.
Investors are also ignoring the major $43 billion acquisition of innovative cancer specialist Seagen, as it will not make up for lost revenues from Covid.
To address this situation, Pfizer has announced 500 layoffs and future savings of $3.5 billion.
After eight weeks of consecutive increases, the price of Bitcoin BTC/USD dropped 2.5 percent from the previous Monday, falling back below $42,000 at the time of this writing.
After experiencing a 56 percent increase in just two months, many investors in the cryptocurrency market are making their profits on BTC, which may explain this week's slowdown.
Meanwhile, the most anticipated event remains the approval of a Bitcoin Spot ETF by the U.S. Securities and Exchange Commission (SEC).
Many industry experts believe that the first positive responses on the approval of these products could come early next year.
In conclusion, the atmosphere continues to be full of positivity, as typical of the Christmas season.
Fisker Inc ChartFisker Inc Chart
The year 2023 ended with a real twist from the Fed.
Not even the most unabashed optimist could have dreamed of such a favorable scenario. Members of the Monetary Policy Committee have revised their individual positions since September.
Goodbye high rates, A real boon for stock markets.
My positions remain firm on the Chinese Futures Hang Seng HK50 index and Fisker (NYSE:FSR) FSR stock where I have chosen on both the accumulation buy mode. However, it is important to note that I am in a bearish position on GC Gold as I anticipate a descent which will be explained in more detail in the next article.