At the end of Wednesday, the Dow Jones Index (US30) rose by 0.69%. The S&P 500 Index (US500) was up 0.61%. The Nasdaq Technology Index (US100) was up 1.24%. All three major US stock indices closed at record highs. Market sentiment was buoyed by strong momentum in the technology sector and encouraging earnings reports from major companies. In addition, traders closely followed the statements of Fed Chairman Powell. At the DealBook summit, Powell reiterated that the Central Bank is in no hurry to cut interest rates, emphasizing that the US economy remains resilient but continues to face inflationary pressures.

Bitcoin prices soared above the key $100,000 mark on Thursday, hitting new all-time highs, as Donald Trump’s imminent return to the White House sparked optimism for a more favorable regulatory environment for the digital assets industry. Trump’s selection of Paul Atkins to replace outgoing SEC Chairman Gary Gensler, who has introduced tougher rules to regulate digital assets, has further fueled that optimism. Atkins, a strong advocate of digital assets, has broad support from market participants.

Equity markets in Europe rallied on Wednesday. Germany’s DAX (DE40) rose by 1.08%, France’s CAC 40 (FR40) closed up 0.66%, Spain’s IBEX 35 (ES35) rose by 0.49%, and the UK’s FTSE 100 (UK100) closed down 0.28%. The French government will resign for the first time since 1962. The French Parliament backed a vote of no confidence in Michel Barnier’s government. He will leave office after serving the shortest term as prime minister in modern French history. Amid the political chaos, more lawmakers are demanding the resignation of Macron, whose term lasts until 2027.

OPEC+ representatives will meet today. The alliance is expected to extend the current production cuts until the first quarter of 2025, but analysts emphasize that the tone and details of Thursday’s meeting could significantly affect prices. Despite the drop, the market received some support from a larger-than-expected decline in US crude oil inventories, as reported by the Energy Information Administration. Geopolitical tensions also impacted market dynamics, including a fragile ceasefire between Israel and Hezbollah, political unrest in South Korea after a brief declaration of martial law, and an escalating conflict in Syria that could involve oil-producing countries.

Asian markets were flat yesterday. Japan’s Nikkei 225 (JP225) rose by 0.07%, China’s FTSE China A50 (CHA50) gained 0.52%, Hong Kong’s Hang Seng (HK50) fell 0.02% and Australia’s ASX 200 (AU200) was negative 0.38%.

PMI reports for November showed a second consecutive month of growth in China’s manufacturing sector, although growth in the services sector slowed. Meanwhile, Beijing recently banned exports of critical military minerals to the US, a retaliation to Washington’s recent actions against China’s microchip industry.

The Australian dollar stabilized near $0.643 on Thursday after data showed that Australia posted its largest trade surplus in eight months in October, driven by higher exports. However, the Australian dollar remained near four-month lows after falling nearly 1 percent on Wednesday. Weak GDP data fueled expectations of an interest rate cut by the Reserve Bank of Australia soon.

The kiwi remains under pressure in New Zealand due to the Reserve Bank of New Zealand’s dovish stance. The RBNZ cut its benchmark interest rate by 125bps this year to 4.25% and said it would further ease monetary policy early next year, possibly by another 50bps if economic conditions evolve as estimated.

Thailand’s annual inflation rate accelerated to 0.95% in November 2024 from 0.83% in October, the highest since May. However, the result fell short of market expectations of 1.12% and remained outside the Central Bank’s target range of 1% to 3% for the sixth month. The annualized core inflation rate, which excludes volatile items such as food and energy prices, rose to 0.80%, the highest since July 2023 and above estimates of 0.77%.