POSSIBLE NEW ALL-TIME HIGH
Bitcoin has recently seen a surge in value, surpassing $71,000 for the first time since last June. This spike is attributed to various factors, including the influence of U.S. politics, particularly as the nation gears up for the upcoming presidential elections. Market analysts and crypto experts are predicting that Bitcoin is on track to achieve a new all-time high, with the current upward trend suggesting that such a milestone could be reached sooner rather than later. Notable figures in the crypto space have voiced their sentiments regarding Bitcoin’s potential for growth and the likelihood of hitting new highs in the near future. Additionally, data from CryptoQuant indicates a notable increase in institutional demand for Bitcoin throughout 2024, with a significant amount of BTC flowing into custody wallets. Overall, there is a sense of optimism and anticipation within the cryptocurrency community as the leading cryptocurrency continues to make significant strides in value and market performance.
OPTIMISM ACROSS ALL SECTORS
During this earnings season, Corporate America is indicating that the recent rally in US stocks could extend beyond technology companies. Reports show a significant increase in references to a potential “bottom” in earnings, suggesting an overall improvement in performance. Many companies closely tied to the economic cycle have reported their earnings, sparking optimism among investors concerned about the market’s reliance on tech giants. Despite facing challenges such as high interest rates and weak demand, cyclical sectors are beginning to see positive developments with an improving economy. While uncertainties surrounding the US election and China’s recovery persist, there are encouraging signs from companies like 3M Co. and Fastenal Co. showing strong performance. Although risks remain, some companies in sectors like materials are posting impressive earnings, hinting at a potential upturn in the broader market.
STRONG BUT STILL CHALLENGING
Ford Motor Company reported better-than-expected results in the third quarter, with adjusted earnings before interest and taxes (EBIT) exceeding Wall Street’s projections. The company’s net income for the quarter was $896 million, with adjusted EBIT increasing by 16% year-over-year to $2.55 billion. In addition, the company stated that its operations in China played a significant role in these results. Nevertheless, despite the positive results, Ford has revised its earnings forecast to the lower end of the previously stated range, at around $10 billion as although it achieved $2 billion in cost reductions, challenges such as inflation and warranty expenses limited profit growth. Moreover, Ford’s electric vehicle unit experienced losses, and this had led the company to rather focus on hybrid models.
DOLLAR DOMINANCE
The U.S. dollar is currently gaining strength against the yen due to political uncertainty in Japan following recent elections, while the British pound remains stable ahead of the UK budget announcement. Despite China’s plans to increase debt issuance significantly, the yuan shows minimal reaction. Confidence in the U.S. economy and expectations of a potential victory for Donald Trump in the upcoming presidential election have boosted the dollar. Moreover, it is worth remarking that the dollar’s strong performance this month has surpassed all major currencies except the pound, while the yen has depreciated sharply following Japan’s election results, with predictions of looser fiscal policies affecting the Bank of Japan’s interest rates.
ON THE RISE
U.S. Treasury yields rose to their highest levels since July, with the 10-year Treasury yield climbing over 3 basis points to 4.314%. This increase was driven by investor anticipation of upcoming economic data releases, including consumer confidence, home price reports, and job openings figures, as well as the uncertainties surrounding the U.S. elections and expectations of a Federal Reserve interest rate cut in November. Similarly, gold prices have also increased, hovering near record highs. At $2,750.87 per ounce, spot gold rose by 0.3%, nearing its all-time peak, and analysts predict that gold prices could reach $2,800 amidst expectations of a Fed rate cut. Additionally, spot silver rose by 1.3% to $34.13 per ounce, while platinum jumped by 1.8% to $1,051.25. The price of palladium also surged by 1.4% to $1,236.00, reaching a 10-month high due to concerns over potential sanctions on major producer Russia.
