New York, USA – European equity futures and Asian stocks showed positive signs as investors brushed off initial concerns surrounding Nvidia Corp.’s revenue forecast. The dollar is on track for its eighth consecutive weekly gain, indicating stability in the financial markets. Euro Stoxx 50 futures rose by 0.2%, while US contracts remained steady.
In Asia, the tech sector performed well, with MSCI’s Asian equity benchmark remaining flat. US 10-year Treasury yields saw a slight dip, while the Bloomberg Dollar Spot Index continued its climb for the third consecutive day. However, Hong Kong and China experienced a decline in shares due to worries regarding the economic outlook, particularly concerning potential stricter tariffs on US exports under President-elect Donald Trump.
Investors remain optimistic about the US market due to factors such as artificial intelligence advancements and the potential for pro-growth policies under the new administration. On the other hand, Chinese equities are facing challenges despite government stimulus efforts. The recent back-to-back monthly losses in Asian equities are attributed to the strength of the dollar and ongoing concerns about the Chinese economy. However, the region’s more favorable valuations in comparison to the US market are contributing to the recovery of some assets.
The cryptocurrency market saw Bitcoin reaching a new high above $99,000 amid expectations that President-elect Donald Trump’s support for crypto and a less strict regulatory environment will benefit the industry. Additionally, reports suggest that a former chairman of the Commodity Futures Trading Commission is being considered as the potential “crypto czar” under the incoming administration.
Federal Reserve Bank of Chicago President, Austan Goolsbee, expressed confidence in lowering interest rates significantly, citing easing inflation as a key factor. The greenback’s rise has put pressure on most Asian currencies, with the dollar index experiencing a 2% increase this month. Geopolitical tensions in Europe have contributed to this trend, leading to the dollar’s eighth straight weekly gain.
In Singapore, economic growth surpassed initial expectations in the third quarter, prompting an upgrade in the city-state’s growth forecast for the year. Meanwhile, geopolitical tensions escalated as Russia launched a new type of ballistic missile into Ukraine, impacting oil and gold prices. Gold prices rose for the fifth consecutive session, highlighting the potential volatility introduced by geopolitical events in the market.
Overall, the financial markets are showing signs of resilience in the face of various challenges, with investors closely monitoring geopolitical developments and economic indicators for future trends.