SVET Markets Weekly Update – 23-27 December 2024
In week 52, traders’ optimism was visibly shaken by the Fed’s politically motivated decision to significantly slow the pace of rate cuts, upsetting the previously rosy outlook for 2025. The Brazilian real weakened further against the dollar on concerns about fiscal policy and rising inflation expectations. Meanwhile, the Turkish lira hit a record low and the South Korean won plunged to its lowest level in 16 years amid escalating political unrest. In Japan, the Bank of Japan kept its key interest rate at 0.25%. BTC rose to $100,000, once again diverging from ETH, which was stagnant below $3.5k. However, BTC subsequently experienced a decline and fell below $95,000 as traders reacted to movements in the stock market.
Monday
Stocks closed higher on Monday, boosted by gains in technology and semiconductor stocks. Despite weak consumer confidence, the market recovered, with Nvidia, TSMC, Broadcom and AMD leading the way. The dollar’s growth slowed as the Brazilian real continued to weaken amid rising inflation expectations. BTC (96k) and ETH (3.4k) continued to slowly recover after a difficult week.
Details
The Chicago Fed National Activity Index rose to -0.12 in November, indicating a slight improvement in economic growth. Production, sales and employment indicators showed a slight improvement. However, consumer spending and housing construction remained weak.
Durable goods orders fell 1.1% in November, worse than expected. The largest decline was recorded in the transportation equipment sector. However, orders for non-defense capital goods (excluding aircraft) increased, indicating some resilience in business investment.
New home sales increased…
