JOB CREATION REBOUNDED
In November, job creation rebounded after a sluggish October, largely due to the resolution of a labor strike and the lessening impact of severe storms in the Southeast. The Bureau of Labor Statistics reported an increase of 227,000 nonfarm payrolls, showing a significant improvement from the prior month’s 36,000. Although the unemployment rate rose slightly to 4.2%, job gains were concentrated in key sectors like healthcare, leisure, hospitality, and government. However, retail trade experienced a decline of 28,000 jobs heading into the holiday season, potentially impacted by the later timing of Thanksgiving. Average hourly earnings also rose by 0.4%, with a 4% growth on a 12-month basis, exceeding expectations. Market reactions were mixed, with stock futures edging higher and Treasury yields decreasing, while the possibility of a Federal Reserve interest rate cut gained traction.
STILL RESILIENT DESPITE VOLATILITY
Gold prices have slightly increased after experiencing a second consecutive weekly decline. Spot gold rose by 0.2% to $2,637.12 per ounce, while U.S. gold futures climbed 0.4% to $2,659.00. This week, gold saw a 0.5% decrease, hitting its lowest level since November 26, and analysts attribute this trend to a less optimistic sentiment among short-term and technical traders. The World Gold Council reported outflows from global gold exchange-traded funds (ETFs) in November after six months of inflows, nevertheless, as there is still a 68% chance of an additional 25-basis-point interest rate cut anticipated at the Fed’s upcoming meeting, this potential rate cut may drive up the appeal of holding gold, as lower interest rates generally boost the precious metal’s value.
RECORD-BREAKING FIGURES
In the past five days, there has been a surge in net inflows into U.S. spot ether exchange-traded funds (ETFs), notably reaching a record high of $428.5 million as of yesterday. BlackRock’s ETHA dominated these inflows, receiving a net $292.7 million, another record-breaking figure. The overall net inflows for ether ETFs in the recent five-day period totaled nearly $800 million as per data from Farside Investors. This comes as the value of the second-largest cryptocurrency, ether, has risen by approximately 60% over the past month, currently trading at around $3,900. Moreover, it is worth noting that despite challenges such as outflows from ETHE and limited trading options, spot ether ETFs have collected over $1.3 billion in net inflows since their launch in July. Additionally, bitcoin ETFs also experienced substantial inflows, led by BlackRock’s iShares Bitcoin Trust (IBIT), which acquired $770.5 million in net inflows.
UNSTABLE TREND
Despite the rollercoaster ride that Super Micro has experienced this year, with its shares experiencing significant volatility, it has recently received a boost. Let’s recall that although the company’s stock initially skyrocketed due to the strong growth in the AI infrastructure sector and its unique server cooling solutions, there were concerns about its accounting practices emerged, leading to a sharp decline in stock value, which were worsened by allegations of manipulation. This situation escalated with investigations by regulatory agencies and the resignation of its auditor, Ernst & Young, nevertheless, despite this challenges, an independent special committee concluded that no wrongdoing had occurred, and this led to a surge in Super Micro stock price. Nevertheless, uncertainties remain as the company makes changes to senior positions and faces ongoing scrutiny. Therefore, investors are being recommended to carefully weigh the risks and rewards of investing in Super Micro Computer amidst this complex situation.
INTERNATIONAL NEWS
European markets experienced a slight uptick today as investors closely monitored the unfolding political developments in France. Despite the ongoing political turmoil within the country, particularly the toppling of Prime Minister Michel Barnier’s government following a controversial budget decision, the CAC 40 index managed to climb 1.3%. President Emmanuel Macron, in response to the political upheaval, delivered a firm speech condemning politicians for losing sight of the voters’ interests. While Macron affirmed his commitment to serving out his presidency until 2027, Barnier resigned from his position but will continue to serve in a caretaker capacity as Macron seeks his replacement. In Asia, markets exhibited a mixed performance, with attention focused on the political instability in South Korea due to the temporary martial law declaration by President Yoon Suk Yeol.
