Rate cuts and their impact on the markets
The Fed's decisions to cut interest rates, while seeking to stimulate the economy, have had a mixed effect on financial markets. On the one hand, these measures tend to favor equity assets by reducing funding costs and encouraging investment. On the other hand, in an environment of global uncertainty and expectations of...
On December 17, 2024, oil prices showed a slight stabilization following the drop in U.S. crude inventories and the Federal Reserve's (Fed) interest rate cut. However, gains were limited by expectations that the Fed will slow the pace of cuts in the coming months. Brent crude oil futures rose 20 cents, closing at $73.39 per barrel, while West Texas Intermediate...
The cryptocurrency market suffered a notable drop after Federal Reserve Chairman Jerome Powell stated that the Fed “cannot own Bitcoin or other cryptocurrencies.” These statements, made in the context of a financial stability conference, intensified the downward pressure in an environment already affected by recent monetary policy decisions.
Bitcoin and Ethereum...
Asian markets experienced a session of high volatility, impacted by the monetary policy decisions of the Federal Reserve (Fed) and the Bank of Japan (BOJ), along with the growing political uncertainty derived from Donald Trump's presidential campaign. The declines were led by technology sectors, while Japanese stock markets managed to trim some of their initial...
The Dow Jones Industrial Average (DJIA) (Ticker AT: USAIND) recently experienced its longest negative streak since 2018, racking up eight consecutive sessions of declines. This downtrend began on December 4, when the index closed above 45,000 points for the first time in history. Since then, it has shown a downward trend, reflecting the volatility and fluctuations...
Broadcom Inc. (Ticker AT: AVGO.US) is an American multinational company that designs, develops and supplies a broad range of semiconductor products and infrastructure software. Its solutions span markets such as data center, networking, software, broadband, wireless, storage and industrial. The company is headquartered in Palo Alto, California, and its president...
The Federal Reserve has signaled that it will continue with interest rate cuts in 2025, but at a slower pace. It is not expected to make a cut in January, due to persistent inflation and labor market strength. This suggests that the Fed will be more cautious in its next moves, keeping interest rates higher for longer than expected. Gold, traditionally a safe haven...
The European Central Bank (ECB) has taken a definite path towards monetary easing under the leadership of Christine Lagarde, whose dovish (stimulus) policy is designed to address the eurozone's economic slowdown without compromising strategic sustainability objectives. The recent rate cuts, combined with the rollback of the €1.85 trillion debt purchase program,...
The European Central Bank (ECB) arrives at its last meeting of the year in an environment of high global economic uncertainty, driven by geopolitical tensions, slowdown in China and political changes in the United States. In this scenario, the ECB Governing Council faces a critical decision: to cut interest rates by 25 basis points (bps) in December, continuing...
Wall Street turned red at the close. The Nasdaq Composite, the main reference for the technology sector in the United States, fell -0.25% on Tuesday, closing at 19,687.24 points. This decline reflects the impact of a combination of macroeconomic and sectoral factors that are keeping the entire market on its toes.
Nasdaq Performance in Context
Although the index...
Recent Financial Results
Oracle (NYSE: ORCL) reported quarterly revenue of $14.06 billion, representing 9% year-over-year growth. However, these results were slightly below Wall Street expectations, which projected $14.11 billion. The company also registered a pullback in the market, losing more than $45 billion in market capitalization following the report. This...
Bitcoin ( BTCUSD ) retreated on Friday, settling below the psychological $100,000 level, after reaching an all-time high of $103,719.4 on Thursday. This 4% decline, which has led the crypto to currently trade around $98,358, reflects profit-taking by institutional investors ahead of U.S. interest rate announcements.
The recent market optimism was linked to the...
EURUSD faces a crucial week, marked by key economic events and trade tensions. As US protectionist policies under President-elect Donald Trump could intensify deflationary pressures in Europe.
Impact of U.S. tariffs
While tariffs are often associated with inflation, in Europe they could have the opposite effect due to limited exposure to U.S. imports and...
The EURUSD is facing a critical day driven by important economic data in both the Eurozone and the US. Today's releases could set the near-term direction for the pair as traders look for clues on economic growth and the state of the labor market.
Europe: Retail Sales and GDP
October retail sales data (10:00 CET) in the euro zone will be the first point of...
Palladium has gone through a difficult 2024, standing out as the worst performing precious metal. Until November, it accumulated a drop of more than 12%, driven by the strength of the dollar and structural changes in its demand, especially in the automotive sector.
Relevant Short-Term Factors:
1. Automotive Market in Transition: Although the electrification...
The renewable energy companies Solaria (Ticker AT: SLR.ES) and Acciona Energía (Ticker AT:ANA.ES) are facing a complicated year in the stock market, with significant losses in their capitalization. Despite these falls, both are managing to remain in the Ibex 35 thanks to their outstanding liquidity, which prevents their exclusion.
The committee that defines...
In recent months, oil prices have fallen sharply, putting Brent and WTI below $70 per barrel, far from the highs reached in early 2024. For consumers, this drop may seem like good news, but for major producers, such as Saudi Arabia and Russia, it represents a significant economic challenge and has set off alarm bells in international markets. This phenomenon is...
Paris is at a critical point. Marine Le Pen and her party, Rassemblement National, are pushing for changes to the 2025 budget, threatening a motion of censure that could destabilize the government. Political instability has severely impacted French bonds, intensifying concerns about the stability of the eurozone.
In the midst of this crisis, Stellantis (Ticker...
