Market Insights: Jan 11th, 2024

Financial Markets and Policies

1. U.S. SEC Approves Bitcoin Spot ETFs: For the first time in history, the U.S. Securities and Exchange Commission (SEC) has approved Bitcoin Spot Exchange-Traded Funds (ETFs). A total of 11 ETFs will start trading on the stock market this Thursday.
2. End of the Era of Easy Money: Experts point out that due to the active intervention of the Federal Reserve in financial markets, a true free market in terms of money no longer exists.
3. Challenges for the Overseas Bond Market: The U.S. Treasury is expected to reduce the funds provided through the Treasury bond market this year. Slowing global economic growth and rising benchmark interest rates could increase the burden of debt.
4. Warning from the President of the Federal Reserve Bank of Dallas: Inflation might rise again if sufficiently tight financial conditions are not maintained. The possibility of further interest rate hikes should not be ruled out.

Stock Market Dynamics

1. NVIDIA’s Stock Price Rises by Over 6.4%: NVIDIA became one of the analysts' top stock picks, with its shares rising more than 6.4% as the CES 2024 Consumer Electronics Show opened in Las Vegas.
2. Hang Seng Index Rises by 0.94%: The Hang Seng Index rose by 0.94%, and the Hang Seng Tech Index increased by over 1%.
3. Guangyang Shares Hit Consecutive Daily Limits: Guangyang Shares and other related stocks saw significant gains.

International Economy and Policy

1. World Bank Global GDP Growth Forecast: According to Cailian Press, the World Bank projects a global GDP growth of 2.4% for 2024 and has revised its 2025 global GDP growth forecast down from 3% to 2.7%.
2. New Measures by the National Immigration Administration: The National Immigration Administration has introduced five new measures aimed at further facilitating the entry of foreign nationals into China.
3. Arrest of Senior Financial Industry Official: Wang Yongsheng, former member of the Party Committee and Vice President of the China Development Bank, has been arrested by the People's Procuratorate of Jilin Province on charges of bribery. The case is currently being further processed.

Financial Institutions and Policies

1. Bank of Korea Keeps Interest Rate Unchanged: The Bank of Korea has held its interest rate steady for the eighth consecutive meeting, maintaining the policy rate at 3.5%, in line with market expectations. The inflation rate is expected to drop to the 2% target by the end of this year or in 2025.
2. Renminbi to U.S. Dollar Central Parity Rate: The central parity rate of the Renminbi against the U.S. dollar was set at 7.1087, down 32 points from the previous day's rate, reaching a near one-month low.
3. Nasdaq in Talks with Indian Authorities: The U.S. Nasdaq Stock Market has been in discussions with Indian authorities about potentially allowing Indian companies to list directly on overseas markets.

Corporate News

1. Amazon Expands Layoffs: Amazon plans to cut several hundred jobs in its media and game live streaming departments. About 500 positions will be cut from its Twitch live streaming platform, accounting for 35% of its workforce.
2. Tencent in Talks with ByteDance to Acquire Game Projects: Tencent and ByteDance are in discussions to acquire game projects, marking a shift from their past competitive relationship to a cooperative one.

Commodities and Markets

Uranium Prices Expected to Enter Third Bull Market: Due to lower-than-expected uranium inventory and production decline, the market is experiencing a supply-demand imbalance, and uranium prices are expected to rise.