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...
As 2024 comes to a close, it’s clear this has been a year of remarkable financial milestones and volatility. From historic gains in tech stocks and cryptocurrencies to significant geopolitical and economic shifts, these events reshaped global markets.
1. Trump and Musk: The Power Duo
Trump's Return:
- Donald Trump became the first non-consecutive two-term U.S. president since 1892, sweeping Congress.
- Shares of $Trump Media & Technology (DJT.US)$ saw extreme volatility, with the DJT index surging 120% in October alone.
Musk’s Gains:
- Elon Musk supported Trump, donating $250 million to his campaign and was appointed head of the new "Department of Government Efficiency."
- $Tesla (TSLA.US)$ shares soared 75% post-election, hitting $488, while Musk’s net worth grew by $200 billion.
2. Bitcoin’s Meteoric Rise
- Price Milestones: Bitcoin surged 130% in 2024, surpassing $100,000 and becoming the 7th largest global asset.
- Key Catalysts:
- January: Approval of Bitcoin spot ETFs.
- April: Halving event.
- November: Trump’s election and pro-crypto policies, including appointing a crypto advocate as SEC chair.
- Bitcoin ETFs amassed $100 billion in assets within 10 months, reaching 82% of U.S. gold ETF levels.
3. Black Monday: Global Market Turmoil
- On August 5, financial markets were rocked by:
- S&P 500: Fell 3%, with the CBOE Volatility Index (VIX) spiking 180%.
- Nikkei 225: Dropped 12%, its largest single-day decline ever.
- KOSPI: Declined over 8%, triggering trading halts.
- Trigger:
- Japan’s unexpected 15-basis-point rate hike spurred a yen appreciation, unwinding carry trades and fueling sell-offs.
4. Nvidia: The Stock Market King
- Historic Growth:
- Nvidia’s stock surged 160% in 2024, driven by explosive growth in its AI-powered data center division.
- Achieved a $3 trillion market cap by June 5, surpassing Microsoft and Apple.
- Record Gains: On February 22, Nvidia added $277 billion in market value, the largest single-day gain in U.S. market history.
5. Chinese Stocks: A Policy-Driven Rally
- Stimulus Impact:
- Beijing’s National Day stimulus measures boosted U.S.-listed Chinese stocks and indices like the Nasdaq Golden Dragon China Index (+38%).
- Top Performers:
- $KE Holdings (BEKE.US)$ and $Bilibili (BILI.US)$ (+70%).
- $JD.com (JD.US)$, $PDD Holdings (PDD.US)$, and $Kanzhun (BZ.US)$ (+50%).
- Monetary Policies:
- The People’s Bank of China announced rate cuts, reduced reserve requirements, and property market support.
- The Politburo’s emphasis on "moderately loose monetary policy" marked a shift not seen since 2010.
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