The Future of IPOs: What to Expect in 2025

Economic

Summary:

2025 promises to be an exciting year for initial public offerings (IPOs). Explore the trends, sectors, and companies to watch in the upcoming IPO landscape, and how they might shape the market.

The world of finance is ever-evolving, and one of the most exciting avenues for investors looking to dive into the next big thing is through Initial Public Offerings (IPOs). In 2025, the IPO landscape is set to be dynamic, with a diverse range of companies aiming to go public and transform industries across the globe. From tech giants to green energy pioneers, the opportunities for investors are vast—and the competition for attention in the market will be fierce.

In this article, we’ll dive deep into what to expect from IPOs in 2025, including emerging trends, sectors poised for growth, and the key players to watch. Whether you’re a seasoned investor or a newcomer looking to tap into the next wave of growth, understanding the IPO environment in 2025 is essential for making informed decisions.

The IPO Landscape in 2025: What’s Different?

In recent years, the IPO market has experienced a roller-coaster ride, with some years seeing a surge of high-profile IPOs, while others have been more subdued. However, 2025 is shaping up to be a year where both technology and sustainability take center stage, with several trends influencing the way companies will go public.

One of the biggest changes in the IPO process in recent years has been the rise of direct listings and SPACs (Special Purpose Acquisition Companies). These alternative methods have given companies more flexibility and faster routes to go public without the traditional IPO process. However, despite these alternatives, the traditional IPO process is still alive and well, and many companies in 2025 will likely follow this path to raise capital, attract investors, and gain market exposure.

Key Trends to Watch in 2025 IPOs

1. Technology Companies Leading the Charge

Tech companies have always been among the most sought-after IPOs, and 2025 will be no exception. With the ongoing advances in artificial intelligence (AI), cloud computing, and cybersecurity, tech startups and established players alike will likely seize the opportunity to go public. Some key trends that may emerge include:

Artificial Intelligence and Machine Learning: Companies harnessing the power of AI and machine learning to drive innovation in fields such as healthcare, finance, and manufacturing will be a significant focus. As AI continues to revolutionize various industries, IPOs in this sector will likely see substantial interest from investors looking to capitalize on future growth.

Cybersecurity: With the increasing frequency of cyberattacks and data breaches, cybersecurity companies will remain in high demand. Companies offering innovative solutions to protect data and networks will be appealing to investors looking for long-term growth opportunities.

Fintech: The fintech sector has been on fire in recent years, and this growth is expected to continue in 2025. From digital wallets and payment processors to blockchain and decentralized finance (DeFi) solutions, fintech IPOs will attract significant investor attention.

2. Sustainability and Green Energy IPOs

Another significant trend in 2025 is the increasing importance of sustainability. The global push for greener, more sustainable solutions will create a wave of IPOs in sectors related to clean energy, electric vehicles (EVs), and carbon reduction technologies. The rise of the green economy is likely to impact the IPO market, with investors keen to align their portfolios with environmental, social, and governance (ESG) principles.

Electric Vehicles (EVs): The EV market is booming, with automakers and startups alike racing to develop the next generation of electric vehicles. Companies focused on manufacturing EVs, as well as those developing EV infrastructure such as charging stations, will likely attract significant investment in 2025.

Clean Energy: Solar, wind, and other renewable energy sources are rapidly growing as global demand for clean energy increases. Companies that provide innovative clean energy solutions will be among the most anticipated IPOs in 2025.

3. Healthcare and Biotechnology IPOs

The healthcare and biotech sectors have been at the forefront of the fight against COVID-19, and 2025 promises to bring even more exciting opportunities in this space. Whether it’s gene therapy, personalized medicine, or healthcare innovation, companies working on cutting-edge medical technologies are likely to seek public funding through IPOs.

Biotech Innovations: Biotech companies that have developed groundbreaking treatments for diseases, or those working on new vaccines and therapies, will be of particular interest to investors.

Telemedicine and Digital Health: The pandemic accelerated the adoption of telemedicine and digital health platforms, and this trend is expected to continue in 2025. Companies in this sector will be poised to benefit from ongoing changes in how healthcare is delivered and consumed.

4. International IPOs and Emerging Markets

While U.S.-based companies have traditionally dominated IPOs, 2025 may see a shift towards international offerings, particularly from emerging markets. Countries in Asia and Africa are rapidly developing tech ecosystems and increasing their share of global IPOs.

China and India: These countries are home to some of the world’s largest and most innovative companies in technology, healthcare, and renewable energy. Expect to see more Chinese and Indian companies going public in 2025, creating opportunities for investors to diversify their portfolios in fast-growing regions.

Africa’s Growing Startups: Africa is also becoming a hub for tech startups, particularly in fintech, agriculture, and renewable energy. While IPOs in the region are currently limited, this is expected to change in 2025 as African companies seek to raise capital on global exchanges.

Companies to Watch for IPOs in 2025

Several high-profile companies are already preparing for IPOs in 2025. These companies are making waves in their respective industries and will likely attract significant investor interest.

Stripe: The fintech giant is expected to finally go public in 2025 after years of speculation. With its innovative payment processing solutions and global reach, Stripe’s IPO will be one of the most anticipated events in the fintech world.

SpaceX: Space exploration and commercial spaceflight are booming, and SpaceX has been a major player in this industry. While founder Elon Musk has hinted that SpaceX could go public, it remains to be seen whether this will happen in 2025.

Instacart: The online grocery delivery platform has been gaining ground in the e-commerce sector, and its IPO is expected to generate significant buzz, particularly in the post-pandemic era when e-commerce continues to thrive.

Rivian: Rivian, the electric vehicle manufacturer, is expected to see continued growth as it ramps up production. Its IPO will be closely watched, especially as the EV market continues to gain traction.

Conclusion

IPOs in 2025 are set to be a thrilling ride for investors, with a wide range of industries poised for growth. From tech and green energy to healthcare and international markets, there will be plenty of opportunities for savvy investors to explore. As with any investment, however, it’s important to conduct thorough research and stay informed about the market trends, economic conditions, and regulatory environments that may impact IPO performance.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Glendon

Economic

In the world of economics and central banking, the terms hawks and doves are often used to describe opposing viewpoints on monetary policy. These terms, rooted in historical political rhetoric, are commonly used to characterize the stance of policymakers when it comes to key issues like inflation control, interest rates, and overall economic growth. Understanding the difference between hawks and doves is essential for anyone interested in how decisions are made at the highest levels of government and finance.

In this article, we will explore the meaning behind these terms, their origins, and how hawkish and dovish policies impact economic conditions. Whether you are an investor, a student of economics, or simply curious about how economic decisions affect your daily life, understanding hawks and doves will give you a deeper insight into the forces that shape global economies.

What Are Hawks and Doves?

The terms hawk and dove are used to describe the outlook of economic policymakers, especially in central banks. These policymakers are tasked with deciding on monetary policies, including setting interest rates and influencing overall economic activity. The difference between hawks and doves lies in how they perceive inflation, unemployment, and the balance between economic growth and stability.

Hawks are policymakers who prioritize controlling inflation over economic growth. They generally advocate for higher interest rates and a tighter monetary policy to curb inflation, even if it means slowing down the economy. Hawks are typically more concerned about the dangers of inflation spiraling out of control and believe that keeping inflation in check is vital for long-term economic stability.

Doves, on the other hand, emphasize economic growth and are more likely to favor lower interest rates and a more relaxed monetary policy. Doves are more willing to tolerate higher inflation if it means stimulating the economy and reducing unemployment. They believe that economic growth should be the priority and that monetary policy should support this goal by making credit more affordable and stimulating investment.

The Origins of Hawks and Doves

The origins of the terms “hawk” and “dove” can be traced back to the Vietnam War era. During this time, hawk was used to describe those who supported a more aggressive approach to the war, favoring military intervention. Conversely, doves were those who advocated for a more peaceful, diplomatic approach, favoring negotiations and the cessation of the war.

Over time, these terms found their way into the realm of economic policy. In the context of central banking, the terms began to reflect different attitudes toward inflation and economic growth. Hawks were seen as those who would take a tough stance against inflation, while doves were viewed as those more focused on achieving economic growth, even at the cost of higher inflation.

The Impact of Hawks and Doves on Monetary Policy

The outlook of hawks and doves has a significant influence on central banks’ decisions, especially when it comes to setting interest rates. Let’s examine how their views affect the economy.

1. Hawks and Interest Rates

Hawks typically argue that raising interest rates is necessary to control inflation. By increasing the cost of borrowing, higher interest rates can slow down consumer spending and business investment, which in turn helps to reduce inflationary pressures.

For example, when inflation is rising above the target set by a central bank (often around 2%), hawkish policymakers may advocate for higher interest rates to cool off the economy. This is especially true when the economy is growing rapidly and there are concerns that inflation could spiral out of control.

While hawkish policies can help stabilize prices, they can also lead to higher borrowing costs for consumers and businesses. This could result in slower economic growth and potentially higher unemployment if businesses cut back on hiring or expansion due to more expensive loans.

2. Doves and Interest Rates

In contrast, doves often support lowering interest rates to encourage economic activity. Lower interest rates make borrowing cheaper, which can stimulate consumer spending and business investment. This is especially important during periods of economic downturns or recession, when demand for goods and services is low.

Dovish policymakers are more likely to keep interest rates low for extended periods to foster economic growth and reduce unemployment. They argue that a strong economy with low unemployment is more important than keeping inflation under control in the short term, particularly when inflation is not yet a major concern.

However, prolonged low interest rates can lead to asset bubbles in markets like real estate and stocks, and may eventually cause inflation to rise if demand outstrips supply. Dovish policies also risk creating excessive debt as borrowing becomes too easy, which can have negative long-term effects on the economy.

The Role of Hawks and Doves in Central Banks

The most well-known examples of hawks and doves are found within central banks, particularly the Federal Reserve in the United States and the European Central Bank. These institutions are responsible for setting monetary policy and adjusting interest rates to manage economic conditions.

Hawks in central banks are more likely to support policies that focus on price stability. They tend to favor interest rate hikes when inflation rises above target, arguing that price stability is necessary for a healthy economy in the long run.

Doves in central banks, however, are more inclined to prioritize economic growth and employment. They might favor low interest rates or quantitative easing measures to stimulate economic activity, especially during periods of low inflation or recession.

The Federal Open Market Committee (FOMC), which sets U.S. interest rates, is often divided between hawks and doves. For example, during periods of economic expansion, hawkish members might push for rate hikes to prevent inflation, while dovish members may argue for keeping rates low to foster more job creation and growth.

How Hawks and Doves Affect Financial Markets

The balance between hawkish and dovish stances in central banks can create volatility in financial markets, especially when interest rate decisions are expected. Here’s how it impacts various asset classes:

Stock Markets: Generally, hawks can lead to volatility in stock markets, as higher interest rates increase borrowing costs and reduce profitability for companies. Dovish policies, on the other hand, often lead to a more favorable environment for stocks, as low interest rates encourage investment.

Bonds: Higher interest rates typically lead to lower bond prices, especially for long-term bonds. This is because new bonds issued at higher rates make existing bonds with lower rates less attractive. Doves are likely to keep interest rates lower for longer, which tends to support bond prices.

Currency Markets: Hawks may lead to a stronger currency because higher interest rates tend to attract foreign investment. Doves, with their focus on growth, may lead to a weaker currency if low rates reduce the appeal of holding assets in that currency.

Conclusion: The Balance Between Hawks and Doves

Hawks and doves represent two different approaches to managing the economy, each with its advantages and risks. While hawks focus on controlling inflation and ensuring long-term stability, doves prioritize economic growth and reducing unemployment. The delicate balance between these viewpoints shapes the monetary policies that impact everything from inflation rates to job creation and financial markets.

Understanding the roles of hawks and doves in economic policy is crucial for anyone seeking to navigate the complex world of finance and investment. As central banks around the world continue to make decisions based on these differing viewpoints, their influence on global economies will remain a key factor in shaping the future of finance.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Glendon

Economic

In the world of financial markets, index trading has emerged as a popular strategy for investors seeking exposure to broad market trends without the complexities of picking individual stocks. Index trading allows participants to speculate on the performance of a basket of securities that represent a particular sector, region, or market.

Whether you're a beginner or an experienced trader, understanding index trading can unlock opportunities to diversify your portfolio, hedge against risks, and take advantage of global market movements. In this article, we’ll cover everything you need to know about index trading, including its benefits, strategies, and key indices to watch.

What Is Index Trading?

Index trading involves trading financial instruments, such as index funds, futures, or contracts for difference (CFDs), based on the performance of a specific market index. A market index measures the performance of a group of stocks, often from a particular sector, market, or economy.

For example, the S&P 500 tracks the top 500 companies in the United States, while the FTSE 100 represents the 100 largest companies listed on the London Stock Exchange. By trading indices, investors can gain exposure to the performance of these groups of stocks without buying the individual shares.

How Does Index Trading Work?

Index trading doesn’t involve owning the underlying stocks in the index. Instead, traders use instruments such as CFDs, futures, or exchange-traded funds (ETFs) to speculate on the index's price movement.

Here’s how it works:

Speculation: Traders predict whether the index's value will rise or fall.

Leveraged Trading: Many instruments, such as CFDs, allow traders to use leverage, amplifying potential gains (or losses).

Profit or Loss: If the market moves in the trader's predicted direction, they profit; otherwise, they incur a loss.

For example, if you believe the NASDAQ 100 will rise due to strong tech sector performance, you might open a long position. Conversely, if you anticipate a market downturn, you could take a short position.

Benefits of Index Trading

1. Diversification

Index trading offers exposure to a broad range of companies, sectors, or economies, reducing the risk associated with investing in a single stock.

2. Cost-Effective

Since you don’t have to buy individual stocks, index trading can be a more affordable way to invest in the market.

3. Flexibility

Indices can be traded across different timeframes, making them suitable for day traders, swing traders, and long-term investors alike.

4. Leverage Opportunities

Many brokers offer leverage on index trading, enabling you to trade larger positions with a smaller initial investment.

5. Hedging Against Risks

Index trading can serve as a hedge against risks in a portfolio. For instance, if you hold multiple U.S. stocks, shorting the S&P 500 can offset potential losses during a market downturn.

Popular Indices for Trading

1. S&P 500 (USA)

Tracks the top 500 companies in the U.S. and is widely regarded as a barometer of the U.S. economy.

2. NASDAQ 100 (USA)

Focuses on 100 of the largest non-financial companies, primarily in the tech sector.

3. FTSE 100 (UK)

Includes the 100 largest companies listed on the London Stock Exchange, representing the UK economy.

4. DAX 40 (Germany)

Represents the 40 largest companies on the Frankfurt Stock Exchange, making it a key index for European markets.

5. Nikkei 225 (Japan)

Tracks the performance of 225 large Japanese companies across various sectors.

6. Hang Seng Index (Hong Kong)

Monitors the largest companies in Hong Kong and serves as a proxy for the Chinese economy.

Strategies for Successful Index Trading

1. Trend Following

Identify long-term or short-term trends in the index and trade in the direction of the trend. Technical indicators such as moving averages can help.

2. Range Trading

Trade indices within a defined range of support and resistance levels, buying at support and selling at resistance.

3. News and Events Trading

Indices are sensitive to macroeconomic news and events. Stay updated on interest rate changes, employment data, and geopolitical developments.

4. Hedging

Use indices to hedge against risks in your existing portfolio, especially during periods of market uncertainty.

5. Scalping

Make multiple trades within a single day to profit from small price movements.

Risks Involved in Index Trading

Leverage Risks

While leverage can amplify gains, it also magnifies losses, potentially exceeding your initial investment.

Market Volatility

Indices can be highly volatile, especially during periods of economic uncertainty or major geopolitical events.

Overtrading

Constantly entering and exiting trades can lead to high transaction costs and emotional stress.

Systematic Risks

Indices represent broad market performance, making them vulnerable to systemic risks like recessions or global financial crises.

Tips for Beginners

Understand the Index: Research the composition and factors influencing the index you wish to trade.

Start Small: Use a demo account or trade with minimal capital initially.

Use Stop-Loss Orders: Protect your capital by setting stop-loss levels to limit potential losses.

Stay Informed: Follow economic news, central bank policies, and market trends.

Diversify Your Portfolio: Avoid putting all your capital into one index or strategy.

Conclusion

Index trading is a versatile and accessible way to participate in global financial markets. By understanding how indices work and employing sound trading strategies, you can take advantage of market trends, diversify your investments, and hedge against risks. However, like any form of trading, it requires knowledge, discipline, and risk management to succeed.

Whether you are a novice looking to get started or an experienced trader seeking to expand your strategies, index trading offers a world of opportunities that align with your financial goals.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Warren Takunda

Cryptocurrency

President-elect Donald Trump will likely issue an executive order on his first day in office to designate Bitcoin as a United States reserve asset, according to Jack Mallers, founder and CEO of Strike.

A 200K Bitcoin buy order is coming in January 2025?

In a podcast interview with YouTuber Tim Pool, Mallers said that Trump could rely on provisions within a so-called “Dollar Stabilization Act,” which grants him considerable authority to protect the US dollar.

“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers said, adding:

“It wouldn't be the size and scale of 1 million coins but it would be a significant position."

The Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis in July, proposes that the Treasury and Federal Reserve purchase 200,000 BTC annually over five years, accumulating 1 million Bitcoin BTC$104,526.

The reserve would be held for at least 20 years, thereby taking 5% of Bitcoin’s total supply (of 21 million tokens) from circulation.

These speculations have resulted in some lofty new BTC price targets for 2025 and beyond.

Bitcoin price may hit $800,000 by 2025’s end

According to Perianne Boring, founder of The Digital Chamber, Bitcoin’s capped supply could lead to significant price appreciation, especially if Trump successfully implements many of his proposed crypto policies.

“If Donald Trump is successful in putting forth a lot of the proposals that he’s proposed to the [crypto] community, the sky is the limit because Bitcoin has a fixed supply,” Boring said in an interview with Fox Business.

She pointed to the stock-to-flow model, which forecasts Bitcoin’s price to exceed $800,000 by the end of 2025. Such a surge would push Bitcoin’s market capitalization to around $15 trillion, up from its current valuation of over $2 trillion.

PlanB, the creator of the stock-to-flow model, predicts Bitcoin to average around a $500,000 valuation across 2025. However, he said that the price may go as high as $1 million.

BlackRock suggests 1-2% portfolio allocation to Bitcoin

The stock-to-flow model’s Bitcoin price prediction hinges on the assumption that demand for BTC will continue to increase.

The US Treasury, theoretically accumulating 200,000 BTC each year, reinforces the idea of stronger demand since it’ll likely force other countries to consider strategic Bitcoin reserves of their own.

BlackRock, which manages over $10 trillion worth of assets, is already recommending investors allocate 1-2% of their portfolios to Bitcoin.

“We see a case for investors with suitable governance and risk tolerance to include Bitcoin in a multi-asset portfolio,” four senior executives, including Samara Cohen, chief investment officer of ETFs, and Paul Henderson, senior portfolio strategist of BlackRock Investment Institute, said in a report published Dec. 12.

To put this into perspective, the total global reserve assets are valued at about $900 trillion. A 2% allocation to Bitcoin from this pool would theoretically drive the cryptocurrency’s price to around $900,000 per unit.

Source: Cointelegraph

Risk Warnings and Disclaimers

Add to Favorites

Warren Takunda

Stocks

December S&P 500 E-Mini futures are up +0.18%, and December Nasdaq 100 E-Mini futures are up +0.30% this morning as market participants looked ahead to the Federal Reserve’s final monetary policy committee meeting of the year as well as the release of the Fed’s favorite inflation gauge and other key economic data later in the week.

In Friday’s trading session, Wall Street’s major equity averages ended mixed, with the tech-heavy Nasdaq 100 notching a new all-time high and the blue-chip Dow posting a 3-week low. Broadcom soared over +24% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the chipmaker reported better-than-expected FQ4 adjusted EPS and provided upbeat FQ1 revenue guidance.

Also, RH surged more than +16% after raising its full-year revenue growth forecast. In addition, Tesla gained over +4% after Reuters reported that the Trump transition team intends to cancel an order mandating carmakers to report crashes involving self-driving systems. On the bearish side, Toll Brothers slid more than -3% after JPMorgan Chase downgraded the stock to Neutral from Overweight.

Economic data released on Friday showed that the U.S. import price index unexpectedly rose +0.1% m/m in November, stronger than expectations of -0.2% m/m, while the export price index was unchanged m/m in November, stronger than expectations of -0.2% m/m.

The U.S. Federal Reserve’s interest rate decision and Chair Jerome Powell’s post-policy meeting press conference will take center stage this week. With Fed officials widely expected to cut interest rates by a quarter percentage point on Wednesday, investors are shifting their focus to any indications of how much more rates might be reduced in 2025. Market watchers will closely follow the central bank’s quarterly “dot plot” in its Summary of Economic Projections, which shows FOMC member forecasts regarding the path of interest rates.

On the economic data front, the November reading of the U.S. core personal consumption expenditures price index, the Fed’s preferred inflation gauge, will be the main highlight this week. Investors will also be monitoring a spate of other economic data releases, including U.S. Retail Sales, Core Retail Sales, GDP (third estimate), Industrial Production, Manufacturing Production, Business Inventories, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, Existing Home Sales, Leading Index, Personal Income, Personal Spending, and the University of Michigan’s Consumer Sentiment Index.

In addition, several notable companies like Nike, Micron Technology , FedEx, Lennar , Accenture, and Carnival Corp are slated to release their quarterly results this week.

Today, all eyes are focused on the U.S. S&P Global Manufacturing PMI preliminary reading, which is set to be released in a couple of hours. Economists, on average, forecast that the December Manufacturing PMI will come in at 49.4, compared to last month’s value of 49.7.

Also, investors will focus on the U.S. S&P Global Services PMI, which arrived at 56.1 in November. Economists foresee the preliminary December figure to be 55.7.

The NY Empire State Manufacturing Index will be released today as well. Economists expect this figure to stand at 6.40 in December, compared to last month’s value of 31.20.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.373%, down -0.59%.

The Euro Stoxx 50 futures are down -0.22% this morning as investors digested business activity data from the region and braced for a series of central bank meetings, including the Fed, Bank of Japan, and Bank of England. Food and automobile stocks led the declines on Monday. A survey released on Monday showed that the downturn in Eurozone business activity moderated in December, as the bloc’s dominant services sector unexpectedly returned to growth, offsetting the prolonged contraction in manufacturing.

Meanwhile, Moody’s unexpectedly downgraded France’s credit rating to Aa3 from Aa2 late Friday, pointing to concerns over deteriorating public finances amid ongoing political instability. In other news, German Chancellor Olaf Scholz is set to face a confidence vote on Monday, with expectations of a loss that could lead to snap elections early next year.

European Central Bank President Christine Lagarde said Monday, “If the incoming data continue to confirm our baseline, the direction of travel is clear and we expect to lower interest rates further.”

Eurozone’s Manufacturing PMI (preliminary), Eurozone’s Services PMI (preliminary), Italy’s CPI, and Eurozone’s Labor Cost Index were released today.

Eurozone December Manufacturing PMI came in at 45.2, weaker than expectations of 45.3.

Eurozone December Services PMI arrived at 51.4, stronger than expectations of 49.5.

The Italian November CPI stood at -0.1% m/m and +1.3% y/y, better than expectations of 0.0% m/m and +1.4% y/y.

Eurozone Labor Cost Index has been reported at +4.60% y/y in the third quarter, in line with expectations.

Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.16% and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.03%.

China’s Shanghai Composite Index closed slightly lower today as investors digested a mixed batch of economic data from the country. Semiconductor and consumer durable stocks led the declines on Monday.

Data from the National Bureau of Statistics showed Monday that retail sales, a key indicator of consumption in China, grew at the slowest rate in three months in November, falling short of even the lowest forecasts. Also, data showed that new home prices in China fell for the 17th consecutive month, indicating persistent struggles in the property sector. At the same time, industrial output growth exceeded forecasts in November.

The latest data suggest that while Beijing’s recent stimulus efforts have helped stabilize growth, they have not yet persuaded consumers to increase their spending. Economists believe that the speed and rollout of the stimulus measures will be crucial for ensuring a sustained economic recovery.

Meanwhile, an official from the People’s Bank of China signaled over the weekend that the central bank intends to lower interest rates and reserve requirements next year. In corporate news, Mabwell Shanghai Bioscience slid over -6% after its directors approved a secondary listing on the Hong Kong exchange. Investors now await the PBOC’s loan prime rate decisions later this week.

The Chinese November Industrial Production came in at +5.4% y/y, stronger than expectations of +5.3% y/y.

The Chinese November Retail Sales arrived at +3.0% y/y, weaker than expectations of +4.7% y/y.

The Chinese Fixed Asset Investment stood at +3.3% y/y in the January-November period, weaker than expectations of +3.4% y/y.

The Chinese November Unemployment Rate was 5.0%, in line with expectations.

Japan’s Nikkei 225 Stock Index closed just below the flatline today as caution prevailed ahead of major central bank meetings this week. Losses in railway and insurance stocks offset gains in machinery and brokerage stocks on Monday.

Business surveys released on Monday showed that Japan’s factory activity contracted for the sixth consecutive month due to subdued demand, while the service sector continued to expand in December, underscoring the economy’s growing dependence on services.

Separately, data showed that Japan’s core machinery orders, excluding those for ships and electric power companies, rose more than expected in October, indicating a positive outlook for capital spending in the months ahead.

Meanwhile, market participants are looking forward to the Bank of Japan’s monetary policy decision on Thursday. Reuters and other media outlets reported last week that the BOJ is inclined to maintain rates steady.

At the same time, JPMorgan’s Japan Economic Research team stated in a note on Monday that the BOJ is likely to raise its policy rate by 25 basis points this week, noting that the balance of recent data seems to fulfill conditions for a rate hike. In corporate news, Sumida slumped over -8% after lowering its 2024 guidance due to reduced demand for xEV, solar power, and industrial products. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -7.72% to 19.96.

The Japanese October Core Machinery Orders came in at +2.1% m/m and +5.6% y/y, stronger than expectations of +1.2% m/m and +0.7% y/y.

The Japanese December au Jibun Bank Japan Manufacturing PMI (preliminary) stood at 49.5, stronger than expectations of 49.2.

Pre-Market U.S. Stock Movers

Super Micro Computer plunged over -12% in pre-market trading following a Bloomberg report that the company reached out to Evercore to assist in raising capital. Also, Nasdaq said late Friday that the company will be removed from the Nasdaq 100 index later this month.

Ford fell more than -2% in pre-market trading after Jefferies downgraded the stock to Underperform from Hold with a price target of $9.

Netflix dropped about -0.6% in pre-market trading after Loop Capital downgraded the stock to Hold from Buy.

Source: Reuters

Risk Warnings and Disclaimers

Add to Favorites

Warren Takunda

Economic

The Euro to Dollar exchange rate (EUR/USD) firmed above the key 1.0450 horizontal support line after S&P Global's Services PMI rose to 41.4 in December from 49.5 in November. The consensus expected another 49.5 reading; a PMI above 50 represents growth for the sector.

The headline points to an unexpected consumer resilience, which can underpin the Eurozone economy while providing a much-needed positive surprise for the euro.

However, EUR/USD upside will be limited as the remainder of the PMI report pointed to ongoing challenges facing Europe.

The Manufacturing PMI stayed at 45.2, which is deep in contractionary territory, whereas the consensus looked for improvement (45.3).

The Composite PMI, which balances these data to arrive at a more representative gauge of the wider economy, read at 49.5, which is above November's 48.5.

S&P Global says output was scaled back amid sustained reductions in new orders and the pace of job cuts was the fastest in four years as companies responded to a drop in workloads by lowering their staffing levels.

This is a relevant finding for the European Central Bank (ECB), which thinks falling employment will lower wages, which will, in turn, lower inflationary pressures.

Investment bank EUR/USD consensus forecasts: The end-2024 and 2025 guide from Corpay has been released. Featuring the median, mean, high and low points forecasted by over 30 investment banks.

The ECB cut interest rates by 25 basis points last week, citing economic weakness and growing confidence that inflation was back under control.

These PMI data will, on balance, reinforce the message and keep the door ajar to further cuts at the ECB in 2025.

"These data will strengthen ECB policymakers’ view that further interest rate cuts are needed. There doesn’t yet seem to be much appetite for 50bp rate cuts, but that could change if the data remain very weak. And even if the Bank continues to move in 25bp steps, we think it will lower rates a bit further than investors currently expect," says Jack Allen-Reynolds, Deputy Chief Euro-zone Economist.

Should the ECB 'outcut' the Federal Reserve and Bank of England, then the Euro will likely remain under pressure against the Dollar and Pound.

However, the ECB confirmed it is not on autopilot and will still respond to the incoming data. Caution is warranted as the PMI report said inflation rates of both input costs and output prices quickened at the end of the year, with charges rising at a pace that remained above the series average.

The Eurozone's economic malaise remains centred on falls in its two largest economies, Germany and France. Both remained in contraction during December, with rates of decline easing only slightly from the previous month.

In contrast, the rest of the Eurozone posted a solid increase in output at the year's end, with the expansion rate reaching a six-month high.

Euro-Dollar looks set to be supported above 1.0450 this week, with further gains possible, potentially taking in 1.0580. Much will also depend on Wednesday's Federal Reserve policy decision, where an interest rate cut is anticipated.

The cut is 'in the price' of the Dollar, but markets will be interested in hearing how the Fed communicates that it will forgo another cut in January.

Messaging will be important, but we don't think there will be enough said or done to break the 1.0450-1.06 range that is being cemented in Euro-Dollar's shorter-term charts.

Source: Poundsterlinglive

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Alex

Economic

Forex

NZD/USD breaks its four-day losing streak, trading around 0.5780 during the European hours on Monday. The New Zealand (NZD) remains stronger following the recent data from its largest trading partner, China. However, the upside of the Kiwi Dollar could be restrained due to the increased likelihood of a further aggressive easing approach from the Reserve Bank of New Zealand (RBNZ) early in 2025.

Recent reports indicate that China, a key trade partner for New Zealand, saw industrial output perform better than expected. However, this optimism was tempered by significantly lower-than-forecast Retail Sales and a continued decline in house prices.

China's annual Industrial Production rose by 5.4% in November, surpassing the market expectation of a 5.3% increase. In contrast, Retail Sales grew by 3.0% year-on-year in November, falling short of the anticipated 4.6% and the previous reading of 4.8%.

Domestically, the Business NZ Performance of Services Index climbed to 49.5 in November, up from 46.2 in October, marking its highest level since February. Additionally, the Food Price Index increased by 1.3% year-on-year in November, slightly above the 1.2% rise recorded in October.

The US Dollar (USD) remains subdued amid tepid US Treasury yields ahead of the Federal Reserve’s (Fed) interest rate decision set for Wednesday. The Federal Reserve is widely expected to announce a 25 basis point rate cut in its final monetary policy meeting of 2024. According to the CME FedWatch tool, markets are now almost fully pricing in a quarter basis point cut at the Fed's December meeting.

The US Dollar Index (DXY), which measures the value of the US Dollar against its six major peers, trades near 106.80 with 2-year and 10-year yields on US Treasury bonds standing at 4.23% and 4.38%, respectively, at the time of writing.

Source: FXSTREET

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Daily News

Remarks of Officials

Central Bank

Forex

FastBull Events

FastBull Featured

Devin

Mohammad Omar

Recent Searches

Top Searches

Markets

News

Analysis

User

24/7

Economic Calendar

Education

Data

The Future of IPOs: What to Expect in 2025

The IPO Landscape in 2025: What’s Different?

Key Trends to Watch in 2025 IPOs

1. Technology Companies Leading the Charge

2. Sustainability and Green Energy IPOs

3. Healthcare and Biotechnology IPOs

4. International IPOs and Emerging Markets

Companies to Watch for IPOs in 2025

Conclusion

Hawks and Doves: Understanding Their Impact on Economic Policy

What Are Hawks and Doves?

The Origins of Hawks and Doves

The Impact of Hawks and Doves on Monetary Policy

1. Hawks and Interest Rates

2. Doves and Interest Rates

The Role of Hawks and Doves in Central Banks

How Hawks and Doves Affect Financial Markets

Conclusion: The Balance Between Hawks and Doves

What Is Index Trading

What Is Index Trading?

How Does Index Trading Work?

Benefits of Index Trading

1. Diversification

2. Cost-Effective

3. Flexibility

4. Leverage Opportunities

5. Hedging Against Risks

Popular Indices for Trading

1. S&P 500 (USA)

2. NASDAQ 100 (USA)

3. FTSE 100 (UK)

4. DAX 40 (Germany)

5. Nikkei 225 (Japan)

6. Hang Seng Index (Hong Kong)

Strategies for Successful Index Trading

1. Trend Following

2. Range Trading

3. News and Events Trading

4. Hedging

5. Scalping

Risks Involved in Index Trading

Leverage Risks

Market Volatility

Overtrading

Systematic Risks

Tips for Beginners

Conclusion

Trump May Use Bitcoin as US Reserve Asset on 'Day One' — How High Will BTC Price Go?

A 200K Bitcoin buy order is coming in January 2025?

Bitcoin price may hit $800,000 by 2025’s end

BlackRock suggests 1-2% portfolio allocation to Bitcoin

Source: Cointelegraph

Stocks Set to Open Higher as Investors Await Fed Meeting and Key U.S. Inflation Data

Source: Reuters

Euro to Dollar Exchange Rate Short-term Outlook Firms On Eurozone PMI Surprise

Source: Poundsterlinglive

Nzd/usd Holds Gains Above 0.5750 Following Mixed Data From China

Source: FXSTREET

Risk Disclosure