ANOTHER MAJOR PURCHASE
MicroStrategy has recently made another substantial investment in Bitcoin by acquiring an additional 21,550 BTC for a total of $2.1 billion. This purchase, completed last week, brought the company’s total Bitcoin holdings to an impressive 423,650 tokens, valued at nearly $42 billion based on current market prices. By selling approximately $2.13 billion in shares during the same period to finance this purchase, MicroStrategy has continued its aggressive accumulation of the digital asset under the leadership of Executive Chairman Michael Saylor. Moreover, it is important to remark that the surge in Bitcoin acquisitions by the company has not only solidified its position as a significant player in the crypto space but has also likely contributed to Bitcoin’s price surge, culminating in a historic crossing of the $100,000 mark for the cryptocurrency. Furthermore, the continued bullish activity around Bitcoin was further evidenced by the substantial inflows into U.S. spot Bitcoin ETFs, which received $2.73 billion in fresh capital last week, as per data from Farside Investors.
REGULATORY SCRUTINY
Nvidia is currently facing scrutiny from Chinese regulators due to suspicions of violating the country’s anti-monopoly law in relation to its acquisition of Mellanox. The State Administration for Market Regulation in China has initiated the probe, highlighting the growing competition between the U.S. and China in the semiconductor industry. This investigation has caused Nvidia’s shares to drop by about 2% this morning. Moreover, the Biden administration has also imposed restrictions on chip sales to China, impacting Nvidia’s ability to sell its advanced AI chips in the country. Nevertheless, it is still worth highlighting that despite these challenges, Nvidia’s stock has performed well this year, surging by almost 188%, contributing to the overall growth of the technology sector and the market as a whole.
SHINING AGAIN
Gold prices have increased, with spot gold rising by 0.9% to $2,655.81 per ounce, and U.S. gold futures climbing by 0.7% to $2,678.20. The price surge is attributed to lower U.S. interest rates and strong demand from central banks. In addition, analysts have noted a positive response to China’s decision to restart gold purchases, after halting them in May, which could potentially drive investor demand. The move by the People’s Bank of China to increase gold holdings signals its proactive approach amidst global economic conditions. Moreover, it is worth noting that various factors such as central bank buying, easing monetary policies, and geopolitical uncertainties have propelled gold to reach record highs this year, setting it on course for its best performance since 2010 with a considerable 28% increase to date. Furthermore, investors are closely watching economic indicators and are predicting a likely interest rate cut at the next Fed meeting, which is expected to impact gold prices further.
INTERNATIONAL NEWS
European markets have started the week on a positive note, as luxury and mining stocks are seeing gains on hopes of economic stimulus in China. The Stoxx 600 was up by 0.27%, though trading was choppy with mixed performances in different sectors and regional bourses. Hong Kong stocks surged nearly 3% following China’s plans for proactive fiscal measures and looser monetary policy for the coming year, boosting European luxury stocks like Kering. Despite this, Asian markets had a mixed session, with South Korea’s Kospi falling over 2% due to political uncertainties after President Yoon Suk Yeol survived an impeachment vote. Additionally, there are concerns about the geopolitical situation in the Middle East following the ousting of Syrian President Bashar al-Assad, with Western leaders cautious about the potential for a power vacuum and increased instability in the region.
KEY EVENTS HAPPENING THIS WEEK
MONDAY: Wholesale inventories report for October.
TUESDAY: U.S. productivity third quarter revision and NFIB optimism index report for November.
WEDNESDAY: Consumer price index (CPI) and core CPI reports for November, and monthly U.S. federal budget.
THURSDAY: Producer price index (PPI) and core PPI reports for November, and initial jobless claims for the week ending on December 7.
FRIDAY: Import price index and import price index minus fuel reports for November.
