In a historic move, the SEC greenlit the first US Bitcoin ETFs, marking a pivotal moment for the volatile crypto asset and the broader industry. Despite concerns about manipulation and investor protection, 11 ETFs from giants like BlackRock and Fidelity are set to debut, potentially attracting billions, and boosting Bitcoin's legitimacy. This approval, however, doesn't signal a crypto free-for-all, as the SEC remains wary and emphasises Bitcoin's speculative nature and potential criminal misuse. Buckle up for a wild ride in the crypto arena, with increased access but continued regulatory scrutiny.
EQUITY
Wall Street clawed back some ground on Wednesday. Tech titans Microsoft, Meta, and Nvidia shouldered the S&P 500 higher, while whispers of a rate cut in March kept prices stable. The Dow and Nasdaq followed suit, though gains were capped as investors braced for tomorrow's consumer price index. With major banks set to report Friday, the market's near-term trajectory hinges on inflation's report.
GOLD
Gold flirted with $2,030 an ounce as investors awaited inflation data due later today that could influence Fed rate cut timing. A softer dollar boosted gold, but expectations of resilient core inflation capped gains. Though breaching $2,030 may prove difficult in the short term, gold will likely continue fluctuating based on dollar movements and changing Fed rate cut predictions.
OIL
Crude prices stabilised after a surprise U.S. inventory build quashed optimism sparked by Middle East disruption risks. Though fears persist of demand decline from winter gloom and economic uncertainty, oil bulls await CPI data that could spur earlier rate cuts to lift demand. Brent and WTI prices may soon turn more sharply, hinging on inflation data expected later today.
CURRENCY
Anticipation of upcoming U.S. inflation data buoyed Asian currencies as bets increased for Fed rate cuts. Most Asian currencies rallied despite China's sluggish rebound. The dollar retreated on predictions of looser monetary policy, while the dovish Bank of Japan weighed on the lagging yen. This divergence reflects contrasting economic paths: Asian economies eye potential stimulus while weak inflation and ongoing central bank support anchor Japan.
