Fed Cuts May Send $1 Trillion FX ‘Avalanche’ to China –
What It Means… Potential interest rate cuts by the Federal Reserve could lead to a significant shift of funds into China. According to Stephen Jen, a former economist at the International Monetary Fund, this could result in an influx of up to $1 trillion into Chinese assets. The anticipated rate cuts are expected to weaken the US dollar, making Chinese investments more attractive. This scenario could bolster China’s financial markets and economy, but also poses risks of increased volatility and capital flow management challenges for Chinese authorities.
Goldman Cuts Oil Outlook Below $80 as OPEC+ Risks Send Chill –
What It Means… Wall Street’s outlook on oil has turned negative due to potential risks from increased OPEC+ production. Goldman Sachs and Morgan Stanley have lowered their oil price forecasts, predicting Brent crude to average below $80 per barrel in 2025. The banks cite rising global supplies, including from OPEC+, as a key factor. This shift in sentiment reflects concerns over the ability of the market to absorb additional supply without significant price declines.
Nvidia Tumbles on Disappointing Forecast, Blackwell Chip Snags –
What It Means… Nvidia’s latest sales forecast fell short of investor expectations, despite surpassing average analyst estimates. The company’s projections did not align with the high hopes of investors banking on a surge in AI computing demand. This discrepancy led to a decline in Nvidia’s stock price in extended trading. The report underscores the challenges Nvidia faces in meeting the lofty expectations set by its recent performance and the broader market’s enthusiasm for AI-related growth.
Zuckerberg Says White House ‘Pressured’ Meta to Pull Covid Posts –
What It Means… Meta CEO Mark Zuckerberg claimed that the Biden administration pressured Facebook to censor COVID-19 content. In a letter to Congress, Zuckerberg expressed regret over the company’s decision to comply with these demands. He detailed how the administration’s influence led to the removal of posts and information related to the pandemic. This revelation has sparked discussions about the balance between public health measures and freedom of speech.
Late French film star Alain Delon wanted his dog buried with him. The dog gets to live –
What It Means… French film icon Alain Delon, who passed away at 88, had expressed a wish for his beloved sheepdog Loubo to be buried with him. However, animal lovers in France can be relieved as Loubo will be allowed to live. Delon, known for his roles as both the bad guy and the policeman, was a prolific actor and producer. His death has prompted tributes and condolences from fans and the film community.
Data supplied by HS Dent Research
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Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.
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