OCTOBER’S INCREASE
According to the Bureau of Labor Statistics, inflation in the U.S. showed signs of a modest increase in October, aligning closely with Wall Street predictions. The consumer price index (CPI), which monitors the price of goods and services, rose by 0.2% during the month, pushing the 12-month inflation rate to 2.6%. Meanwhile, the core CPI, which excludes the more volatile food and energy prices, increased by 0.3% for the month and reached an annual rate of 3.3%, in line with expectations. Energy costs remained unchanged in October, while food prices experienced a slight increase. Moreover, it is worth noting that housing prices continued to be a major driver of the overall CPI growth, jumping by 0.4% in the month. Overall, these inflation trends have important implications for Federal Reserve policy decisions, particularly with the impending transition to a new administration in January, and as for now, traders are anticipating lower number of cuts.
BULL RUN PAUSED
As reported before, in the aftermath of President-elect Donald Trump’s recent victory, the Bitcoin market has been on a significant rally, with its value experiencing a sharp rise of around 30%. Trump’s promise to create a favorable regulatory environment, establish a strategic Bitcoin reserve, and position the U.S. as a global hub for the industry initially sparked positivity within the market, leading Bitcoin to hit a record high of $89,968. However, the upward trend seems to have paused as traders ponder the lasting impact of Trump’s vocal support for cryptocurrencies. Uncertainties linger about the prioritization of cryptocurrency legislation amidst broader national concerns, including U.S.-China relations and economic issues. In addition, market analysts warn that much of the positive news may already be priced in, thus, cautious optimism is advised.
NEW CRYPTO DEPARTMENT
Despite Bitcoin’s rally pause, Dogecoin still experienced a significant surge in value, and this was due to the recent President-elect Donald Trump’s announcement of the creation of the Department of Government Efficiency, referred to as “DOGE.” This department, spearheaded by Tesla CEO Elon Musk and Vivek Ramaswamy, aims to streamline government processes, reduce regulations, and restructure federal agencies. The market response was positive, with Dogecoin posting a 153% gain since the election, outpacing bitcoin’s performance. In addition, it is worth remarking that Dogecoin has surpassed XRP, and now holds the title of the sixth-largest cryptocurrency by market capitalization.
RACE AGAINST TIME
Super Micro Computer is facing delays in filing its financial report for the September quarter as it searches for a new auditor following the resignation of Ernst & Young due to concerns about the company’s governance and transparency. This has led to the company being at risk of delisting, resulting in a 4% drop in its shares. Let’s remember that although the company experienced significant growth in 2023, there have been concerns about accounting practices and allegations of manipulation by Hindenburg Research, and as result, the Nasdaq notified the company of non-compliance with listing rules, giving them 60 days to file an annual report or present a plan to regain compliance. Thus, given the current delay in finding a new auditor, Super Micro Computer is under pressure to address these issues promptly to avoid further consequences.
UNDER PRESSURE
Oil prices have been under pressure due to a range of factors, including reduced global oil demand forecasts by OPEC for the upcoming years and concerns over weakening demand in China. This has resulted in Brent futures and U.S. WTI crude futures trading near their lowest levels in two weeks. Moreover, it is worth highlighting that uncertainties persist as falling demand projections and geopolitical tensions continue to impact market sentiment. In addition, analysts attribute the recent decline in oil prices to a stronger U.S. dollar following the U.S. presidential election, limited stimulus efforts in China, and adjustments in OPEC’s demand forecasts. Consequently, experts are currently expecting further downward pressure on oil prices in the short term, with some predicting a potential return to September lows for WTI crude.
