YIELD HIKE
The U.S. 10-year Treasury yield has increased this morning following the latest speeches from Federal Reserve officials, in which they advised caution on interest rate cuts. Policymakers like Neel Kashkari and Lorie Logan have highlighted the need for a careful and patient approach to lowering rates. As a result of this, the yield rose to 4.198%, marking its highest level in three months after increasing by 12 basis points yesterday. In addition, the 2-year Treasury yield also went up to 4.052%. Moreover, let’s remember that market sentiment has been influenced by strong economic data, and as a result, many expect a potential quarter-point cut at the upcoming November meeting. Nevertheless, it is worth noting that due to the uncertainty surrounding the Fed’s future rate adjustment plans, the likelihood of an additional reduction in December is perceived to be lower. Furthermore, although this week is quiet on data, it is busy with Fed speeches, thus, many are keeping a close eye to gather ideas of how the Fed might act for the rest of the year.
CONTINUOUS SHINE
Gold prices have continued their upward trend, staying near the all-time high they reached yesterday ($2,740.37). As of 8:00 AM CST, spot gold rose by 0.5% to $2,732.06 per ounce, while U.S. gold futures gained 0.3% to $2,746.50. These increases are fueled by concerns about geopolitical tensions, uncertainty surrounding the U.S. election, and expectations of central banks cutting interest rates. In addition, with gold considered as a safe haven during uncertain times, it has gained 32% this year. Furthermore, it is worth remarking that despite a strong U.S. dollar and Treasury yields, gold’s momentum continues due to high demand and inflows into gold-backed ETFs, and analysts believe that with ongoing rate cuts, central bank purchases, and market uncertainty, gold could reach $2,800. Additionally, silver and platinum prices also rose, with silver hitting its highest point since late 2012. Overall, the precious metals are currently doing well, and market analysts predict further gains in the market, especially if current trends persist.
REVVING UP SUCCESS
General Motors (GM) has reported impressive third-quarter results, surpassing revenue and profit expectations while raising its guidance for the year. With revenue reaching $48.78 billion and earnings per share hitting $2.96, GM’s financial performance has exceeded market consensus. These results come as GM focuses on improving profitability in electric vehicles (EVs) through cost reductions and increased sales, and although there was a 2% decline in overall vehicle deliveries, GM saw a 3% increase in retail sales, positioning the company as a leader in the U.S. automotive market. Moreover, the GM is also optimistic about achieving profitability in EVs by enhancing variable profit margins and reducing costs, and as it continues on this path, it aims to maintain similar earnings in 2025 as those in 2024.
MYSTERY TRANSFER
Elon Musk’s recent forays into the world of cryptocurrency have once again stirred curiosity and speculation. Tesla’s recent transfer of approximately $765 million worth of Bitcoin to undisclosed wallets has left industry experts and crypto enthusiasts pondering the company’s next moves. Despite initially making waves with a $1.5 billion investment in Bitcoin in early 2021, Musk later expressed concerns about the environmental impact of Bitcoin mining, prompting Tesla to sell off a significant portion of its holdings, and while this move was criticized for potentially missing out on substantial profits, Tesla still retains a smaller reserve of Bitcoin that has shown impressive appreciation in value. Moreover, the ongoing evolution of Tesla’s cryptocurrency strategy is being closely monitored, especially amidst new accounting standards that may shape how the company manages its digital assets in the future.
CURRENTLY DOWN
Although Bitcoin briefly reached nearly $70,000 over the weekend, its price dropped to just over $67,000 earlier this morning, causing a general decline in the value of major cryptocurrencies. Ethereum, Toncoin, and Cardano experienced significant decreases, while XRP and BNB Chain remained stable and Dogecoin saw a slight drop. This drop in prices led to the liquidation of over $165 million in long positions in cryptocurrency futures trading, indicating a reduction in leverage. On the other hand, the Simon’s Cat token surged by 63% following its listing on Binance exchange, illustrating increased trading demand. Moreover, it is worth remarking that traders are expecting a week of subdued trading activity due to a lack of significant catalysts. Thus, although Bitcoin and Ethereum are nearing key resistance levels, without major news expected this week, market fluctuations around these levels are likely as investors wait for further developments.
