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Chinese manufacturing, Bitcoin monthly decline, gold gains

Investing.com – Wall Street is expected to trade slightly lower on Tuesday, the last trading day in a positive year on Wall Street. China’s manufacturing sector grew at a slower pace than expected in December, while Bitcoin and gold are set to end the year with huge gains.

1. China’s manufacturing sector grew in December

Purchasing Managers’ Index data showed on Tuesday that China’s manufacturing sector grew in December but at a slower pace than expected, recording its third consecutive month of growth as a set of new stimulus measures continued to provide support.

Data from the National Bureau of Statistics showed that the reading was at 50.1 in December, and that above the 50 level indicates expansion, but below the 50.3 seen the previous month.

Most of the key indicators that make up the manufacturing PMI were above the critical point, the survey statement said, adding that the production activities of industrial enterprises maintained rapid expansion.

China has committed to implementing more proactive fiscal stimulus measures and adopting somewhat looser monetary policies in 2025, the government indicated during the Politburo meeting.

Beijing is expected to roll out more targeted fiscal stimulus in response to Trump’s tariffs next year. Recent reports indicated that the country will increase fiscal spending to support economic growth.

Strong Chinese consumption extends beyond the manufacturing sector. It grew by 52.2 in July, leading the country to expand to 52.2 in December from 50.8 in the previous month.

Chinese President Xi Jinping said on Tuesday that the Chinese economy is expected to grow by about five percent in 2024, state media reported.

2. Futures are trending lower; Wall Street posts big gains in 2024

US stock futures fell slightly on Tuesday, in thin trading ahead of the final trading session of 2024, a very positive year.

By 03:45 EST (08:45 GMT), the contract was down 6 points, or 0.1%, down 5 points, or 0.1%, and down 33 points, or 0.2%.

The major averages are set to end the year with strong gains, with the index up about 24%, gaining 13%, while the Nasdaq is up about 30%.

US stock markets have benefited this year as the Federal Reserve underwent one of its most aggressive cycles in recent history, stimulating hopes for a period of economic growth.

President-elect Donald Trump’s successful re-election campaign in November also boosted market sentiment, fueling hopes for deregulation and lower corporate tax rates, although concerns remain about future trade wars.

The slate of economic data is largely empty on Tuesday, and markets are closed on Wednesday, meaning focus will quickly shift to weekly data and data later in the week, ahead of next week’s official monthly report.

3. Bitcoin is set to see a monthly decline

Cryptocurrency prices rose on Tuesday amid weak year-end trading volumes, but the world’s most popular cryptocurrency is set to record its first monthly decline since early August.

At 03:45 ET, Bitcoin rose 0.5% to $94,297.0, but was on track for weekly losses of more than 4%, heading for its third straight weekly decline, having fallen in five of the past six sessions.

However, Bitcoin is set to post annual gains of around 120% after hitting a record high above $100,000 in November after Donald Trump secured his return to the White House, boosting sentiment surrounding the cryptocurrency as many analysts expect it will foster a more favorable regulatory environment. . For digital assets.

Sentiment in the sector also received a boost earlier in the year after the Securities and Exchange Commission gave the green light to the first U.S. bitcoin spot exchange-traded funds, or ETFs, broadening the appeal of cryptocurrencies to more mainstream investors.

The cryptocurrency is widely expected to see more positive price momentum in 2025 – with many industry observers expecting its value to double to $200,000.

4. Gold records excellent gains in 2024

Gold prices rose on Tuesday, and are on track for stellar annual gains on the back of the Federal Reserve’s interest rate cuts this year as well as geopolitical tensions and aggressive buying from major central banks.

At 03:45 EST (08:45 GMT), it rose 0.4% to $2,615.85 an ounce, while the February expiration price rose 0.4% to $2,627.50 an ounce.

The yellow metal rose more than 25% in 2024 due to the Federal Reserve’s significant interest rate cuts earlier this year and geopolitical tensions around the world.

While gold prices rose for most of the year, the Fed’s December meeting was a stumble after it signaled smaller interest rate cuts next year.

The market is now awaiting a new set of catalysts, including a slew of US economic data scheduled for release next week that may impact the US central bank’s interest rate forecasts for 2025, and President-elect Donald Trump’s tariff policies.

5. High oil prices due to the growth of Chinese manufacturing industries

Crude oil prices rose on Tuesday, supported by signs of growth in Chinese manufacturing activity, but are on track to decline for the second year in a row due to demand concerns in major consuming countries.

By 03:45 EST, US crude futures (WTI) were up 0.8% at $71.53 per barrel, while the contract was up 0.7% at $74.48 per barrel.

China’s manufacturing sector expanded in December but at a slower pace than expected, expanding for the third straight month as a raft of new stimulus measures provided support.

The outlook for oil demand depends largely on the hope that China, the world’s largest oil importer, can revive its economy, especially since there are concerns about a potential oversupply due to expected increases in production from non-OPEC countries.

Brent crude is still on track to lose about 3% in 2024, while the WTI contract is largely unchanged over the year.



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2024-12-31 11:55:00

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