Weekly Summary 16 January 2025: Inflation, Earnings, Oil Prices, Tech Trends
Thursday 16 January 2025
28 Nov Weekly Recap: Crypto & Obesity Drug Stocks Surge, Inflation Data & More
As we approach the end of November 2024, financial markets have experienced significant developments, from Bitcoin's remarkable surge to pivotal economic indicators influencing commodities and stocks.
Let’s take a closer look at this week’s highlights:
Bitcoin Retreats from $100,000
Bitcoin (BTCUSD) recently neared the $100,000 threshold, marking a historic moment for the cryptocurrency market. However, it experienced a pullback to approximately $95,776. Some market experts suggest that Bitcoin was "extremely overbought" post-election, leading to this stall. Investors are closely monitoring its trajectory. Read more about Bitcoin's market performance.
Stocks Benefiting from Bitcoin's Surge
Companies with significant Bitcoin exposure, such as MicroStrategy, Coinbase, and BlackRock, have seen notable stock performance. MicroStrategy's shares have soared by 540% this year, reflecting trader optimism towards digital assets, especially under the incoming administration. However, the company's heavy reliance on Bitcoin introduces volatility risks. Read more on stocks riding Bitcoin's surge.
Gold and Oil Prices Decline Amid Market Developments
Gold prices declined by around 2%, ending a five-day winning streak. This movement was influenced by potential de-escalation in the Middle East and announcements regarding the next U.S. Treasury Secretary. Similarly, oil prices fell due to rumours of a possible ceasefire between Israel and Hezbollah, with Brent and WTI down by 2.9% and 3.2%, respectively. Read more about the decline in gold and oil prices.
Obesity Drug Stocks and Small Caps on the Rise
Shares of pharmaceutical companies like Eli Lilly and Novo Nordisk rose following proposals to expand access to anti-obesity medications. Additionally, the Russell 2000 small-cap index reached a new all-time high, driven by optimism for U.S. domestic companies under the anticipated new administration. Read more on obesity drug stocks and Russell 2000's rise.
Global Economic Updates: Inflation and Interest Rates
The U.S. Personal Consumption Expenditure (PCE) report indicated that inflation remains above the Federal Reserve's target, suggesting that interest rate cuts may not occur soon. Meanwhile, the Reserve Bank of New Zealand cut rates by 50 basis points as inflation approached its target range. Read more about global economic updates.
In summary, this week has showcased significant financial movements, with Bitcoin nearing unprecedented highs, commodities reacting to geopolitical developments, and stocks responding to policy proposals and economic data.
TL;DR FAQs
Did Bitcoin reach $100,000 this week?
No. Bitcoin approached the $100,000 mark last weekend but pulled back to around $95,776 earlier this week. Analysts attribute this to overbought conditions post-election.
How did gold and oil prices perform?
Both gold and oil prices declined, influenced by potential Middle East de-escalation and announcements regarding U.S. economic policy.
What were the significant stock market movements?
Stocks of companies like MicroStrategy, Coinbase, and BlackRock benefited from Bitcoin's surge. Pharmaceutical stocks rose due to proposed expansions in anti-obesity medication access, and the Russell 2000 index reached a new high.
