MONEY MASTER

Asian equities began the week on a subdued note as high U.S. Treasury yields tested Wall Street's lofty valuations, keeping the U.S. dollar near multi-month highs. Market Performance : MSCI Asia-Pacific Index dipped 0.2% but remains 16% up for the year. Japan’s Nikkei slid 0.9%, still boasting a 20% annual gain. Chinese blue chips rose 0.3%, with most of their 16% yearly gain achieved after Beijing’s September stimulus promises. South Korea's index edged up 0.3% but is down 9% for the year, weighed by political uncertainties and events like Jeju Air’s recent plane crash. Global Futures : EUROSTOXX 50 futures gained 0.1%. U.S. futures saw slight declines, with S&P 500 and Nasdaq futures down 0.1%. Economic Drivers and Concerns U.S. Treasury Yields : Yields on 10-year Treasuries are near eight-month highs at 4.631%, up 75 basis points for the year. Rising yields reflect revised expectations of less restrictive monetary policy, raising concerns about potential impacts on corpo...

The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd  (+76% YTD) V.S. Industry Bhd  (+47% YTD) NationGate Holdings Bhd  (+51% YTD) P.I.E. Industrial Bhd  (+29% YTD) Strugglers : ATA IMS Bhd  (-8% YTD) JHM Consolidation Bhd  (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a  27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...

  KLCC (Holdings) Sdn Bhd (KLCCH) , a subsidiary of  Petroliam Nasional Bhd (Petronas) , announced the acquisition of  486 acres  of prime land in Bandar Malaysia. The land, previously a Royal Malaysian Air Force base, is located along Jalan Sungai Besi in Kuala Lumpur. The sale-and-purchase agreement, signed on  October 4 , was only disclosed recently. While financial terms were not revealed, reports suggest the transaction could be valued at up to  RM12 billion , as mentioned in  The Edge Malaysia Weekly . Development Plans KLCCH aims to transform the area into: An  international business hub , A  liveable and inclusive city  for the community. The development will be carried out over the long term based on commercial viability. KLCCH, already renowned for managing real estate like the  Petronas Twin Towers  and other properties in Kuala Lumpur City Centre (KLCC) and Putrajaya, is expected to replicate its expertise in this p...

Cindy Lui , a former equity sales trader at  Citigroup Inc , has won her case for unfair dismissal in Hong Kong’s Labour Tribunal. The court ruled that the US bank failed to justify Lui’s summary dismissal in 2019. Background of the Case Lui, who served as a vice-president at Citigroup for 12 years, was part of a Hong Kong-based team accused of misrepresenting trading positions to clients. Regulators in Hong Kong had identified “pervasive dishonest behaviour” in Citigroup’s Asian markets division, leading to a  HK$348.3 million fine  in 2022. Citigroup terminated Lui for alleged misrepresentation of trades and misleading its investigations team. This dismissal resulted in Lui losing  HK$2 million in pension benefits  and her 2018 bonus. Key Tribunal Findings The tribunal found that while Citigroup had valid reasons for dismissal due to trade misrepresentation, there wasn’t sufficient evidence of fraud or dishonesty to warrant summary dismissal, which is consider...

Investors in the US are paying a significant premium for  Taiwan Semiconductor Manufacturing Co. (TSMC)  shares, highlighting the persistent appeal of stocks tied to the  artificial intelligence (AI) boom . At the close of last Friday, TSMC’s  American Depositary Receipts (ADRs)  traded at a  24.6% premium  compared to its Taipei-listed shares. This marks the highest premium since October 17 and exceeds the quarterly average of 19%, according to  Bloomberg  data. What’s Driving the Premium? Index Inclusion and Accessibility : TSMC’s ADRs are included in prominent indices such as the  Philadelphia Semiconductor Index  and exchange-traded funds (ETFs) like the  VanEck Semiconductor ETF  and  iShares Semiconductor ETF . Funds tracking these indices are required to hold US-listed securities, creating sustained demand for ADRs. ADRs also provide easier access for global investors compared to locally-listed shares. Market D...

Oil prices began the week on a positive note, buoyed by expectations of further US policy support for global economic growth following cooling inflation data. Brent crude futures  rose by  0.4% to $73.20 per barrel , while  US West Texas Intermediate (WTI) crude futures climbed  0.5% to $69.77 per barrel  by early trading on Monday. Drivers of the Oil Price Recovery Cooling Inflation : US inflation data showed signs of easing, alleviating concerns about the Federal Reserve's hawkish stance and raising hopes for further policy support in 2025. US Senate Action : Legislation passed by the US Senate to avert a government shutdown over the weekend added to market optimism. European Supply Stability : The Druzhba pipeline, a major conduit for Russian and Kazakh oil to Europe, resumed operations after a brief technical halt, easing supply concerns. Challenges for Oil Markets China's Oil Demand Forecast : Research from Sinopec indicated that China's oil consumption is ...

The Madani Government has demonstrated its commitment to addressing the cost-of-living challenges faced by Malaysians through an enhanced  Sumbangan Tunai Rahmah (STR)  initiative. With an allocation increase to  RM13 billion  in Budget 2025, up from RM10 billion previously, this marks the largest funding boost for STR to date. Supporting Households Amid Rising Costs Economist  Prof Dr Barjoyai Bardai  from Malaysia University of Science and Technology emphasized the importance of STR in easing financial burdens for households. While the aid may not cover the full cost of living for families—estimated at over RM3,000 monthly—it provides meaningful support to supplement household incomes. Sustainable Aid Mechanism Proposed Barjoyai suggested creating an  endowment fund  through a social security institution capable of generating annual income. This mechanism would ensure sustainable STR funding, reducing reliance on annual government budgets. Expan...

As his second term approaches, US President-elect Donald Trump has made significant appointments to bolster his administration's defence and cryptocurrency policy teams. The high-profile selections include billionaire Stephen Feinberg as the deputy secretary of defence and Michael Kratsios as head of tech policy at the White House. Defence Leadership Stephen Feinberg , co-founder of private equity firm Cerberus Capital Management, is set to take on the No. 2 role at the Pentagon. Known for his investments in hypersonic missile technology and other defence-related ventures, Feinberg will oversee day-to-day Pentagon operations. His appointment comes as Trump’s pick for secretary of defence,  Pete Hegseth , faces resistance in the Senate. Other defence appointments include: Michael Duffey : Undersecretary of acquisition and sustainment. Emil Michael : Undersecretary of research and engineering. Keith Bass : Assistant secretary for health affairs. Joe Kasper : Chief of staff to Pete He...

VentureTECH Sdn Bhd and MTC Orec Sdn Bhd have announced a strategic partnership aimed at accelerating the development of biomethane plants across Malaysia, a move that aligns with the nation’s renewable energy and sustainability goals. In a joint statement, the companies disclosed that VentureTECH’s investment will fund the establishment of biomethane facilities in  Peninsular Malaysia’s northern and east coast regions . The collaboration will also include a project with a leading oil and gas player, slated to launch next year. This partnership is expected to advance Malaysia’s renewable energy aspirations, reduce carbon emissions, and foster sustainable growth while creating significant socio-economic opportunities. Driving Renewable Energy Innovation Ahmad Redzuan Sidek , CEO of VentureTECH, emphasized the company’s commitment to environmentally and economically sustainable investments: “MTC Orec’s expertise in bioenergy and its alignment with Malaysia’s renewable energy goals ma...

Local institutional investors sustained their buying momentum on  Bursa Malaysia  for the  ninth consecutive week , recording net equity purchases of  RM1.05 billion  last week, up from  RM995.5 million  the prior week, according to MIDF Research. Key Insights Foreign Investors : Continued to exit the market with a  net outflow of RM1.07 billion , marking another week of selling. Sector Trends : Highest Net Foreign Inflows : Property (RM42.6M), Technology (RM40.2M), Plantation (RM29.4M). Highest Net Foreign Outflows : Financial Services (-RM500.5M), Healthcare (-RM168.9M), Utilities (-RM160.5M). Retail Investors Return to Buying After four weeks of net selling, local retail investors turned net buyers with  RM13.8 million  in net purchases. Regional Context Asia-Wide Trend : Foreign investors recorded  US$4.7 billion  in net outflows across eight Asian markets, a 2.6x increase from the previous week. Key Contributors : Taiwan :...

As of Q3 2024, highway-related projects worth  RM15.09 billion  have been awarded to  Bumiputera contractors , nearing last year's total allocation of  RM15.1 billion , according to Deputy Works Minister Datuk Seri Ahmad Maslan. Key Highlights Increased Participation :  1,631 G1 Bumiputera companies  secured RM335 million in projects this year, a slight increase from the RM333 million awarded to 1,585 companies in 2023. Infrastructure Development : This reflects the growing contribution of Bumiputera contractors to Malaysia’s infrastructure projects, showcasing their capability and commitment. Matchmaking Programme The announcement was made during the  Bumiputera Contractors Association with Highway Concessionaires Matchmaking Programme , aimed at further boosting Bumiputera participation in highway projects. Statements from Officials Ahmad Maslan emphasized the programme’s role in enhancing Bumiputera contractors’ economic share. Senior officials from...

The bond market's reaction to the Federal Reserve’s rate cuts has been anything but conventional. Yields on  10-year US Treasuries  have risen sharply, defying expectations of easing-induced price gains. The result is a uniquely difficult landscape for bond traders heading into 2025. Key Highlights Rising Yields :  10-year Treasury yields  have increased by over three-quarters of a percentage point since September, marking the steepest rise in the early stages of a Fed rate-cut cycle since 1989. Fed’s Caution : Policymakers project just two 0.25% rate cuts in 2025, with inflation concerns driving a slower pace of easing. Economic Resilience : Despite high borrowing costs, the US economy remains robust, keeping inflation above the Fed's 2% target. Market Implications Steepener Trade : Traders are capitalizing on the spread between short-term and long-term yields, with  10-year yields  trading above  2-year yields  for the first time since 2022. Sho...

The global economy faces a turbulent road ahead in 2025, with risks stemming from geopolitics, trade wars, and structural challenges in major economies. Key Challenges: Trade War Risks : A potential Donald Trump presidency could spark a global trade war through import tariffs of 10% to 20%, escalating to 60% for Chinese goods, risking fresh inflation and economic slowdown. Geopolitical Uncertainty : Conflicts in Ukraine and the Middle East add unpredictability to global energy costs and supply chains. Economic Disparities : While wealthy nations grapple with voter dissatisfaction over cost-of-living crises, poorer countries face their worst economic state in two decades, exacerbated by weaker trade and funding conditions. Debt and Spending Strains : Governments face stretched budgets due to climate action, military spending, and ageing populations, raising fears of a potential financial crisis if debt levels continue to climb unchecked. European Political Deadlocks : Political stagnati...

Bitcoin has recorded its first weekly decline since Donald Trump’s election win, reflecting the impact of the US Federal Reserve’s cautious monetary stance. Key Highlights: Weekly Drop : Bitcoin fell over  7% , the largest weekly drop since September, trading around  $94,344 , nearly  $14,000  below its December 17 record high. Broader Crypto Market : Other digital assets, including  Ether  and  Dogecoin , saw sharper losses of about  10% . Fed's Influence : The Fed’s hawkish outlook tempered speculative enthusiasm, despite optimism over Trump’s pro-crypto stance and his support for a  national bitcoin stockpile . ETF Outflows : A record outflow from US Bitcoin exchange-traded funds last week signals potential price pressure ahead. Market Outlook: Support Level : Analysts highlight the  $90,000  level as critical; a break below could trigger liquidations. Hedging Activity : Increased options market activity indicates downside protec...

The Energy Transition and Water Transformation Ministry has announced that electricity tariffs in Peninsular Malaysia will remain unchanged for the first half of 2025 under the  Imbalance Cost Pass-Through (ICPT)  mechanism. Key points: Electricity subsidies : The government will finance RM2.388 billion in subsidies to shield domestic consumers from tariff hikes. Fourth Regulatory Period : The average basic tariff for Tenaga Nasional Bhd will be maintained under the  Incentive-Based Regulation framework  from  2025 to 2027 . Future tariff changes : A new  tariff schedule  reflecting actual supply costs will be implemented from  July 1, 2025 , involving a financial allocation of  RM3.57 billion  by the government. This approach ensures a balance in the  energy trilemma  of security, sustainability, and affordability, safeguarding domestic consumers while striving for competitive electricity pricing.

Wall Street Recap U.S. equities bounced back, recouping recent losses amid inflation relief: S&P 500 : +1.09% to 5930.85 Dow Jones : +1.18% to 42840.26 Nasdaq : +1.03% to 19572.60 Key developments include: Berkshire Hathaway  boosted its stake in  Occidental Petroleum , acquiring $409.2 million worth of shares over three days. Trump Media & Technology (DJT.US)  fell 6% after Donald Trump transferred 115 million DJT shares, valued at over $4 billion, to a revocable trust. Bursa Market Insight Malaysia’s FTSE Bursa Malaysia KLCI closed lower at  1591.41 (-0.54%) : Top Gainer :  PBBANK (1295.MY)  up 2.19% to RM12.14 Top Loser :  PETDAG (5681.MY)  down 4.23% to RM19.02 Corporate Highlights 1. Top Glove (TOPGLOV.MY) Swung to a  net profit of RM5.47 million in 1QFY2025 , reversing a loss of RM57.71 million a year ago. Revenue surged  79.5%  to RM885.89 million, driven by glove sales projected to rise 60% in FY2025, benefiting from...

 The Federal Reserve’s decision to halt further interest rate cuts this week, despite market volatility and political brinkmanship, appears to align with economic indicators showing moderated inflation and steady economic growth. Market Reaction and Volatility On Wednesday, the Federal Reserve delivered an expected rate cut while signaling fewer reductions in 2025 than previously anticipated. This led to a dramatic selloff, with the  Dow Jones Industrial Average (DJI)  plunging over 1,100 points and extending a historic 10-session losing streak. Similarly, the  S&P 500 (SPX)  and  Nasdaq Composite (IXIC)  saw their steepest Fed-day losses in years. However, relief came on Friday as stocks rallied after the release of November's  Personal Consumption Expenditures (PCE)  inflation data, which showed softer-than-expected price pressures. The Dow gained nearly 500 points, with the S&P 500 and Nasdaq also climbing over 1%. Inflation Modera...

Malaysia has emerged as the top data centre hub in Southeast Asia for the second consecutive year, securing  USD 23.3 billion  (RM141.72 billion) in digital investments during the first ten months of 2024. This achievement marks a threefold increase compared to 2023, driven by strategic initiatives and investments from global tech giants like  Microsoft ,  AWS ,  Google , and  Oracle . Regional Leadership and Economic Resilience Knight Frank Malaysia’s  Data Centre Research Report 2024  highlighted Malaysia’s top rank in the  SEA-5 Data Centre Opportunity Index , with an impressive annual take-up of  429 MW —outperforming its regional peers. Keith Ooi, Group Managing Director of Knight Frank Malaysia, emphasized,  "Malaysia's digital infrastructure leadership offers global players an unparalleled investment opportunity, setting the standard for economic resilience and technological innovation." Key Drivers Behind Malaysia's Success ...

Singapore's consumer price inflation showed a slight uptick in November, with overall  CPI rising 1.6%  year-over-year, compared to  1.4%  in October. However,  core CPI , which excludes private road transport and accommodation, slowed to  1.9%  from October’s  2.1% , reflecting moderating price pressures in key areas. Key Inflation Metrics Overall CPI: MoM:  No change. YoY:  Increased by  1.6% . Below the  1.85%  forecast in a Wall Street Journal survey. Core CPI: YoY Growth:  Slowed to  1.9%  from  2.1%  in October. Sectoral Breakdown Housing & Utilities:  +2.6% YoY (24.80% index weight). Food:  +2.4% YoY (21.10% index weight). Transport:  +0.5% YoY (17.07% index weight). Recreation & Culture:  +1.4% YoY. Education:  +3.0% YoY. Miscellaneous Goods & Services:  +0.4% YoY. Communication:  -1.3% YoY (only sector with negative growth). Implications for M...

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

The Federal Reserve's  core personal consumption expenditures (PCE)  price index, its favored measure of inflation, cooled in November, signaling progress in controlling price pressures. The monthly core PCE index rose  0.1% , the slowest since May, while the annual rate held at  2.8% , below expectations of 2.9%. Key Highlights Broad-Based Deceleration: Core services prices, excluding housing and energy, rose  0.2% , the slowest since August, while core goods prices fell for the first time in three months. Consumer Spending Resilience: Inflation-adjusted spending rose  0.3% , driven by strong goods purchases, including vehicles, though services spending showed the weakest growth since early 2024. Wage Growth: Wages and salaries increased  0.6% , the fastest since March, supporting consumer resilience during the holiday season. However, overall disposable income grew modestly at  0.3% . Market Reaction Treasury Yields and Dollar:  Fell after ...

Wells Fargo & Co. announced its departure from the  Net-Zero Banking Alliance (NZBA) , signaling growing divergence among Wall Street banks on climate commitments. The move follows  Goldman Sachs' exit earlier this month , as financial institutions face increasing scrutiny from  Republican lawmakers . Key Details No Explanation Given: Wells Fargo, headquartered in San Francisco, did not elaborate on its decision to leave the  NZBA , the world’s largest climate alliance for banks. Political Pressure: Financial firms, including Wells Fargo, are under scrutiny from  GOP-led investigations and lawsuits , alleging collusion and anti-competitive behavior in climate-related initiatives. "Climate Cartel" Allegations: The  House Judiciary Committee , chaired by Ohio Republican  Jim Jordan , accused environmental alliances like NZBA of forming a "climate cartel." Industry Trends: Other institutions, such as  BlackRock, Vanguard, and State Street , have ...

Starbucks baristas represented by the  Workers United union  began a five-day strike in  Los Angeles, Chicago, and Seattle  on Friday, citing unresolved disputes over wages, staffing, and schedules. The action involves over  10,000 workers  and comes amidst rising labor activism in the service industry. Key Issues and Background Labor Actions Surge: This strike follows a year of significant labor movements, with industries like automotive, aerospace, and rail seeing  notable concessions  won by workers. In 2023, there were  33 work stoppages , the highest since 2000. Negotiations Stalled: Talks between Starbucks and Workers United began in  April , but the union claims the company has yet to propose a  serious economic offer  with just two weeks left before the year-end contract deadline. Starbucks insists it has reached agreements on  over 30 topics  in nine bargaining sessions. Union Demands: The union is pushing fo...

US stock futures pared losses on Friday following softer-than-expected inflation data, while Treasury yields fell. However, concerns about the Federal Reserve's hawkish tone and a potential government shutdown continue to loom large over markets. Key Market Movements Stock Futures: S&P 500 futures: -0.5% Nasdaq 100 futures: -0.8% Dow Jones Industrial Average futures: -0.2% Treasuries: 10-year US Treasury yields fell six basis points to  4.50% . Commodities: West Texas Intermediate crude: -0.6% to  $68.96/barrel . Gold: +0.7% to  $2,611.66/ounce . Drivers of Market Sentiment Inflation Data: The Federal Reserve's preferred inflation measure, the  Personal Consumption Expenditures (PCE) index , rose by a muted  0.1% in November , suggesting a more benign inflation trajectory. Despite this, annual core PCE inflation remained steady at  2.8% , underscoring persistent price pressures. Fed’s Policy Outlook: The Fed scaled back its anticipated rate cuts for 202...

Switzerland and the European Union (EU) have reached a landmark agreement to secure Switzerland’s continued access to the EU's single market, marking the end of a prolonged negotiation period following the breakdown in relations in 2021. The agreement aims to solidify economic and political ties after years of uncertainty and lays the groundwork for smoother bilateral cooperation. Key Features of the Agreement Safeguard Clause on Immigration: A reworked safeguard clause allows Switzerland to address unexpected challenges stemming from free movement of people, addressing domestic concerns without breaching the EU’s foundational principles. Financial Contributions: Transition Period (up to 2030): Switzerland will contribute  130 million francs  annually. From 2030 to 2036: Contributions increase to  350 million francs ($391 million)  annually. Sectoral Cooperation: The accord includes agreements on science funding, rail transport, and electricity. Swiss businesses had ...

Bahvest Resources Bhd, soon to be known as  Aumas Resources Bhd , has announced plans to acquire RM22.82 million worth of mining equipment from  Chengdu Mining Maintenance Technology Co Ltd , a China-based firm. The equipment will support the construction of a new gold mining processing plant near its existing facility in  Bukit Mantri, Tawau, Sabah . Key Highlights Plant Capacity Expansion: The new facility will have a processing capacity of over  2,000 tonnes per day (tpd) , nearly doubling the throughput of the current plant, which operates at  1,200 tpd . Timeline: The plant's commissioning is expected within the next  12 months . Operational Benefits: Increased production to meet growing demand. Enhanced operational efficiency and resource utilisation. Improved profitability and cost-effectiveness amidst fluctuating industry conditions. Market Impact Competitiveness: The plant's enhanced capabilities aim to solidify Bahvest's position in the gold minin...

The union representing over  10,000 Starbucks baristas  announced strikes in  Los Angeles, Chicago, and Seattle starting Friday, citing unresolved issues around wages, staffing, and schedules. The five-day strike is the latest in a series of escalating labor actions across service industries. Key Points Strike Scale:  Workers United, the union representing Starbucks employees at  525 stores , plans to escalate walkouts, potentially involving  hundreds of stores  nationwide by Christmas Eve. Negotiation Deadlock: Talks began in April under a February framework, with  nine bargaining sessions  and agreements on  30+ topics  to date. The union rejected Starbucks' offer of no immediate wage hike and a 1.5% increase in future years, calling it insufficient. The union is demanding a  64% immediate wage increase  and  77% over a three-year contract , which Starbucks deems "unsustainable." Broader Labor Context Rising Labor A...

US consumer spending, a key driver of the economy, grew by  0.4% in November , following a revised  0.3% gain in October , reflecting the economy’s resilience. This solid spending trend supported the Federal Reserve’s decision to adjust its outlook, projecting only  two rate cuts in 2025 , down from four anticipated three months ago. Economic Highlights: Consumer spending, representing over two-thirds of US economic activity, continues to underpin the economy, which grew at an  annualized 3.1% rate in Q3 . The  Atlanta Federal Reserve  forecasts Q4 GDP growth at  3.2% , reflecting a slight deceleration from earlier quarters. Fed Chair Jerome Powell commended the economy’s performance, stating it has been “remarkable.” Inflation Trends: The  PCE price index , a key inflation measure, rose  0.1% in November , compared to  0.2% in October . On a yearly basis, the PCE index increased  2.4% , with core inflation holding steady at  2...

  Gapping Up: FedEx (FDX.US):  Stock surged  8.6%  after the company exceeded fiscal Q2 earnings expectations and announced plans to spin off its freight business. Eli Lilly and Co (LLY.US):  Shares climbed  5.5% , buoyed by increasing confidence in its  obesity treatments competing in a high-demand market. Gapping Down: Nike (NKE.US):  Shares dropped  7.4%  despite strong Q2 results, as the company highlighted  guidance concerns linked to "severe issues." Novo-Nordisk A/S (NVO.US):  Fell  18%  after its next-gen obesity drug  CagriSema  delivered  weight loss results below expectations in a late-stage trial. Tesla (TSLA.US):  Declined  5% , impacted by a  40.9% drop  in European Union registrations in November compared to last year. Trump Media & Technology (DJT.US):  Slipped  5.5%  after an SEC filing revealed Donald Trump transferred his stake in the company int...

Stock futures fell  in early Friday trading as investors awaited the release of the  Federal Reserve's preferred inflation gauge , the  Personal Consumption Expenditures (PCE) price index . Markets remain cautious following the Fed's  hawkish tone  earlier this week, signaling fewer-than-anticipated interest rate cuts in 2025. Key Market Moves S&P 500 Futures:  Down 0.3% Dow Jones Futures:  Off by 0.4% Nasdaq Futures:  Lower by 0.5% The declines follow a turbulent week marked by the Fed’s unexpected pivot toward  slower easing  of monetary policy next year, raising concerns about growth prospects. What’s Driving the Market? PCE Inflation Report: The  core PCE index , a measure closely watched by the Fed, will provide insights into the trajectory of inflation. Economists forecast a  0.2% monthly rise , which could influence the timing of future rate cuts. Rate Hikes vs. Growth Concerns: Investors are weighing the Fed’s cauti...

The US exchange-traded fund (ETF) industry, valued at  $10.4 trillion , witnessed an eventful 2024, marked by  record inflows and fund launches  alongside near-unprecedented closures. Here's an overview of the year's key trends: A Mixed Bag: Record Launches and Closures Closures:  Nearly  200 ETFs shut down  in 2024, approaching early-pandemic termination rates. Funds focused on  ESG themes ,  China , and  cannabis  saw significant closures. Launches:  Over  700 new ETFs debuted , marking a  record second-consecutive year  of launches. Successful launches included  Bitcoin and Ether spot ETFs  and  leveraged single-stock ETFs  targeting popular stocks. Saturated Market Challenges The US market now hosts  3,900 ETFs , making it increasingly difficult for new funds to achieve scale. Many ETFs fail to meet the asset and trading thresholds required by institutional investors and trading platforms....

Canadian retail sales showed no growth in November, halting a four-month streak of gains, according to an advanced estimate by Statistics Canada. This follows a  0.6% increase in October , slightly below the  0.7% forecast  by Bloomberg-polled economists. Key Highlights Consumption Weakens:  Retail sales stalling signals waning consumer momentum as the Bank of Canada continues to lower borrowing costs, albeit at a slower pace. Bank of Canada Rate Cuts:  Since June, the central bank has reduced rates by  175 basis points , with another  50 basis points  cut last week. Policymakers are expected to continue easing early next year. Subsector Performance: Automotive Sales Lead Gains:  Sales increased at both new and used car dealerships in October. Core Retail Sales:  Excluding gas stations and car dealers, core sales rose  0.2% , driven by furniture, electronics, and personal care. Gas Station Sales Decline:  Receipts dropped for t...