DAILY MARKET NEWS - 09-01-2024

Ariff Azraei

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Cryptocurrency investors' optimism mounts as the SEC decides on Wednesday whether to approve spot Bitcoin exchange-traded funds (ETFs). Major players like BlackRock, Grayscale, and Fidelity met Monday’s application deadline with a total of 10 submissions. With Bitcoin over $47,000, approval could spur heavy trading volume as soon as Friday. Former SEC Chair Jay Clayton calls a Bitcoin ETF inevitable as issuers now compete on fees, with the lowest at 0.24%. The crypto community awaits the SEC’s momentous decision on institutional adoption that will open the mainstream floodgate.


Stock made a comeback on Monday, showcasing a tech rally led by Nvidia, Apple, and Amazon right after the tech-laden CES 2024 revitalised interest. The Nasdaq surged 2.1%, its first significant gain in 2024, while the S&P 500 climbed 1.4% for its biggest one-day gain since mid-November. However, Boeing's 8% slump capped the Dow's gains at a modest 0.6% rise. Investors await key inflation data and major bank earnings to gauge the stock's performance for the year.


Gold prices climbed today, erasing earlier losses triggered by the dollar's pullback. The pivot suggests a potential easing of monetary policy sooner than initially anticipated, rekindling the precious metal's allure as a haven asset. However, Thursday's inflation report remains anxious, and a surprise could quickly dim gold's shine this week.


Oil prices plunged over 3% Monday as Saudi Arabia slashed export prices and OPEC output surprised. Geopolitical tensions from escalating attacks in the Red Sea remained, but weak demand and rising competition from other producers drove Saudi Arabia to lower its flagship crude price in Asia. While a force majeure at Libya's Sharara field offered temporary support, markets are bracing for a potential first-half 2024 well-supplied scenario.


The dollar remains strong despite some profit-taking before key US inflation figures, which could support bets on a March cut. However, mixed job data and expected easing by other central banks raise doubts about a significant 2024 dollar rally. The yen rose as Tokyo inflation neared the BOJ's target, but earthquake risks may delay policy shifts. Meanwhile, the yuan weakened on China's easing hints, while the euro and others edged up against the dollar.