Bitcoin climbs back above $93,000. Palladium rises to $1,460/oz

On Tuesday, the Dow Jones (US30) rose by 0.39%, the S&P 500 (US500) gained 0.25%, and the Nasdaq (US100) closed 0.59% higher. Risk appetite supported Bitcoin’s rally, while the AI and software sector helped stabilize sentiment. Key drivers included Boeing, Nvidia, Oracle, and Intel, which posted significant gains. Investors continue to monitor macro data and the delayed PCE report ahead of next week’s Fed meeting, where markets still expect a 25 bp rate cut. Rising sovereign bond yields limited a stronger market recovery.

Bitcoin climbed back above $93,000, recovering confidently after its sharp drop below $84,000 earlier this month amid renewed risk demand. The rally was supported by expectations of a 25 bp Fed rate cut next week. Additional momentum came from rumors that Kevin Hassett may be appointed Fed Chair, reinforcing dovish sentiment, along with positive industry news: the SEC is preparing an “innovation exemption” for digital asset companies, and Vanguard announced plans to launch digital assets-focused funds.

European equities closed mostly higher on Tuesday, reflecting improved sentiment as investors assessed the trajectory of global interest rates. Germany’s DAX (DE40) rose by 0.51%, France’s CAC 40 (FR40) fell by 0.28%, Spain’s IBEX 35 (ES35) gained 0.49%, and the UK’s FTSE 100 (UK100) slipped 0.01%. The banking sector supported gains after Japanese bond stabilization, with BNP Paribas and ING up about 2%, and Santander rising on the sale of its Polish unit stake. Bayer surged more than 12%. The FTSE 100 rose 0.2% to 9,720 points, its highest in three weeks, driven by British banks after a successful stress test confirmed sector resilience.

Palladium (XPD) rose to $1,460/oz, its highest in nearly a month, supported by improved demand expectations and signs of limited supply. The launch of palladium futures in China added hedging tools and boosted interest from the world’s largest metals consumer. Medium‑term outlook points to supply deficits lasting at least until 2026.

Platinum (XPT) fell below $1,650/oz after recently hitting a six‑week high, as rising US bond yields and weak manufacturing data in the US and China triggered profit‑taking. Before the correction, platinum had rallied on expectations of recovering Chinese demand following the launch of a new physical contract on the Guangzhou exchange. Year‑to‑date, platinum has gained more than 70%, supported by supply disruptions in South Africa, safe‑haven demand, and strong Chinese buying.

WTI slipped slightly on Tuesday to around $59/barrel as the market digested mixed geopolitical and supply signals. Tensions with Venezuela escalated after Donald Trump declared its airspace “closed,” while Ukrainian strikes on OPEC+‑related facilities temporarily disrupted operations at the Caspian Pipeline Consortium terminal. Meanwhile, OPEC+ confirmed current production levels will be maintained in Q1 2026 amid oversupply risks.
Asian markets traded mixed yesterday. Japan’s Nikkei 225 (JP225) rose by 0.01%, China’s FTSE China A50 (CHA50) fell by 0.25%, Hong Kong’s Hang Seng (HK50) gained 0.24%, and Australia’s ASX 200 (AU200) closed 0.16% higher.

The Australian dollar climbed to a five‑week high near $0.657 on Wednesday, despite weak GDP data. Australia’s economy grew just 0.4% QoQ, below expectations, reducing the likelihood of the RBA tightening next year. Markets are now almost certain the rate will remain at 3.6% at next week’s meeting, while Governor Bullock emphasized readiness to act if inflationary pressures return.