In the latest financial news, the U.S. stock market has shown strong performance as of December 14, 2023 market close. The Dow Jones Industrial Average stands at 37,248.35 points, the Nasdaq Composite Index at 14,761.56 points, and the S&P 500 Index at 4,719.55 points. The Federal Reserve’s decision on December 13, 2023, to maintain the current benchmark overnight borrowing rate between 5.25% and 5.5% has been a significant development. This decision, which keeps the rate unchanged from July 2023, signals an easing of inflation. The market has responded positively to this news, with expectations of three cuts to borrowing costs in the coming year. Meanwhile, in Europe and Britain, the Bank of England and the European Central Bank have decided to keep their key interest rates steady. In Asia, India has made headlines by surpassing Hong Kong to become the world’s seventh-largest stock market. India’s Nifty 50 index reached a new record high on December 14, 2023, with a year-to-date increase of 16%, while Hong Kong’s Hang Seng index has seen a decline of 17% over the same period.
In a significant move in the bond market, the yield on the 10-year Treasury dipped by 12 basis points to 3.917%, marking its first drop below the 4% threshold since August. Meanwhile, the 2-year Treasury yield also saw a decrease, falling by 13.3 basis points to settle at 4.35%. This decline, which followed a drop of as much as 25 basis points on Wednesday, is a direct response to the latest guidance issued by the Federal Reserve.
In the realm of cryptocurrency, Bitcoin has exhibited significant volatility over the past fortnight. It peaked at $41,019.76 on December 8, 2023, before swiftly dipping below the $40,000 mark on December 11, 2023. In related news, several leading financial institutions, including BlackRock, have submitted applications to the U.S. Securities and Exchange Commission (SEC) for the launch of a spot Bitcoin ETF. Approval of these applications could potentially channel billions of dollars of institutional investment into the cryptocurrency market. Coinbase, a major player in the crypto space, remains optimistic about the approval of a U.S. Bitcoin ETF by the SEC ahead of the January 2024 deadline.
In the commodities sector, gold prices soared to record highs, breaching the $2,100 per ounce mark on December 4, 2023. This surge was driven by investors increasing their gold holdings as a safeguard against global conflicts and in anticipation of rate cuts from the Federal Reserve. Despite a dip below the $2,000 threshold on December 11, 2023, gold prices rebounded to the $2,000 level following the Federal Reserve’s latest interest rate decision. Turning to oil, prices experienced a significant recovery on Thursday, rising by 4.16% after hitting a six-month low of $67.88 per barrel on December 13, 2023. This rebound was influenced by a weaker U.S. dollar and an upgraded demand forecast from the International Energy Agency (IEA). However, the IEA’s demand forecast is notably divergent from that of the Organization of the Petroleum Exporting Countries (OPEC). The IEA’s projection is half of OPEC’s estimate, indicating differing views on the future trajectory of oil demand.
Finally in the realm of currency exchange, the dollar recently experienced a decline. It hit a two-week low against the euro and a more than four-month low against the Japanese yen.
Flow Traders Investment Competition Update
We have got a new competition leader! Zilvervloot Investeerders has taken over the first place in the ranking by passing Merx. Despite a lower return than Merx, their constant growth has made Zilvervloot Investeerders jump 22 spots with a M2 return of 7.83% already! However, when Investment Groups win positions in the ranking, others should lose them. Unfortunately for Malkiel Investments this has been a week to forget rather today than tomorrow. By losing 25 positions in only one week, last weeks' number 2 has completely lost sight of the desired first place in the Flow Traders Investment Competition. Furthermore, newcomer Raven Capital has climbed 14 spots in the ranking last week, let's see if they can continue their promising start!
