EXPANDING CRYPTO PRESENCE
The prominent player in the cryptocurrency investment space, Grayscale Investments, has recently announced its intention to convert its multi-token fund, the Grayscale Digital Large Cap Fund, into an exchange-traded fund (ETF). This move comes following the successful conversion of its bitcoin and ether funds earlier this year, and the fund will now track major cryptocurrencies like bitcoin, ether, solana, XRP, and avalanche. If approved, this ETF will trade on the New York Stock Exchange, making it more easily accessible to a wider range of investors. Let’s remark that this initiative is part of Grayscale’s commitment to providing diversified exposure to the crypto asset class and meeting the growing demand for crypto investment options, and the recent move marks Grayscale’s fifth ETF launch this year, amidst previous funds experiencing a decline in value. Moreover, following the announcement, smaller tokens like Ripple’s XRP, Solana’s SOL, and Litecoin’s LTC increased significantly, with the latter rising by almost 8% in the last 24 hours.
MORE POSITIVE RESULTS
Morgan Stanley has announced that its investment banking sector experienced a significant surge in the third quarter, exceeding analyst expectations and solidifying a broader revival in dealmaking activities across Wall Street. The firm reported a substantial 56% increase in fees from investment banking, totaling nearly $1.4 billion, marking the largest boost among major banks. This surge, coupled with heightened trading activities, propelled Morgan Stanley’s net profit to $3.2 billion, reflecting a 32% year-on-year increase. These positive financial results highlight a broader trend of resurgence in the Wall Street operations of leading banks, such as JPMorgan Chase, Wells Fargo, Goldman Sachs, Bank of America, and Citigroup, and buoyed by recent interest rate cuts by the Federal Reserve, executives are optimistic about the prospect of increased dealmaking in the near future. Furthermore, it is worth noting that despite some soft spots, particularly in its equity capital markets division, Morgan Stanley’s wealth management segment demonstrated strong growth in new assets and revenues, which suggests a promising outlook for the firm’s performance.
POTENTIAL FOR RECORD PRICES
Experts in the bullion industry are predicting record-high prices for gold in the near future. At a recent London Bullion Market Association event, delegates stated that they foresee the precious metal reaching $2,917.40 per ounce by late October next year, which means that there could be an increase of 10% from current levels. This projection is based on input from traders, refiners, and miners who participated in a survey during the conference. Gold’s appeal as a safe haven asset, its role in wealth protection, and increasing central bank acquisitions have contributed to its strong performance in 2024. Recently surpassing $2,685 per ounce, the metal has seen significant gains following the Federal Reserve’s decision to reduce interest rates. As investors focus on the upcoming U.S. presidential election, Republican candidate Donald Trump’s stance on tariffs, Federal Reserve consultations, and federal deficit concerns is influencing market sentiment. Furthermore, the survey indicates an anticipated 40% gain for silver, projecting a price of $45 per ounce in the upcoming year.
FACING ANOTHER INCREASE
Last week saw another increase in mortgage interest rates for the third consecutive week, reaching the highest level since August. This led to a significant decrease in demand from both current homeowners looking to refinance and potential homebuyers. Total mortgage applications dropped by 17% compared to the previous week, according to the Mortgage Bankers Association. The average interest rate for 30-year fixed-rate mortgages also went up to 6.52%, with refinance applications seeing the biggest decline of 26% week-over-week. However, compared to last year, refinance demand was still notably higher. Meanwhile, applications for home purchases fell by 7% but were higher compared to the same period last year. Neverthelss, it is worth noting that despite the increase in rates, first-time homebuyers are still showing interest in the market due to improved housing inventory conditions. In addition, with a more stable start to the current week in terms of rates, potential buyers may be keeping a close eye on economic conditions and the outcome of the upcoming November election before committing to a home purchase.
INTERNATIONAL NEWS
Chinese stocks are teetering on the edge of a correction as disappointment grows over the sluggish pace of government stimulus measures. The CSI 300 Index closed 0.6% lower, marking a nearly 10% decline from its peak in early October. Let’s highlight that investor sentiment has been on a tumultuous journey since late September, initially fueled by optimism from the central bank’s stimulus actions. However, as Beijing delays outlining a comprehensive fiscal spending plan, doubts have arisen about the government’s commitment to further support the economy and markets. Moreover, experts have noted that the rapid surge in momentum seen in late September is unsustainable, and investor opinions vary on whether the rally has plateaued or if there are further gains to come, with upcoming events like a press briefing on property sector support likely influencing market direction.
