MONEY MASTER

Global markets ended the week on a strong note with significant stock gains and declining US Treasury yields, as investors brace for President-elect Donald Trump's policies, which are expected to include tariffs, tax cuts, and deregulation. Meanwhile, Bitcoin surged near the historic US$100,000 mark. Market Highlights US Stocks Wall Street Performance: Dow Jones: +0.97% to 44,296.51 S&P 500: +0.35% to 5,969.34 Nasdaq Composite: +0.16% to 19,003.65 Sector Movements: Gains were led by industrials, consumer discretionary, financials, and consumer staples , while communication services, utilities, and technology saw losses. Key Stock Movement: Nvidia fell 3.2% despite strong earnings due to disappointing sales forecasts. Global Indices Europe: The Stoxx 600 gained 1% , snapping a four-week losing streak. MSCI Global Stocks: Up 0.33% to 854.22 , with a weekly gain of 1.4%. Treasury and Currency Markets US Yields: The benchmark 10-year Treasury yield slipped 1.4 basis poi...

Key Takeaway: Malaysia has been removed from the US Treasury's currency monitoring list , while no major trading partner was declared a currency manipulator for the year ending June 30. The US Treasury Department, in its final currency report under the Biden administration, found that no major trading partners manipulated their currencies . The report highlights a shift from interventions to weaken currencies, seen during Donald Trump’s first term, to measures aimed at strengthening currencies to combat inflation . Malaysia Exits Monitoring List: Malaysia was removed from the Treasury’s monitoring list due to improved foreign exchange practices . However, South Korea was added, citing a large global current account surplus and a significant goods and services trade deficit with the US. Countries Remaining on the Monitoring List: China, Japan, South Korea, Taiwan, Singapore, Vietnam, and Germany remain on the list. The Treasury monitors countries meeting two of these three criteri...

Solar wafer manufacturing projects in the US will now be eligible for a 25% investment tax credit , following a new rule announced by the US Treasury Department . This expansion could unlock significant investment in domestic production, addressing a gap in the local supply chain for crystalline silicon wafers , which are essential components for solar panels. The rule extends the credit initially created under the US Chips and Science Act , which was designed to bolster the semiconductor supply chain , to now include solar wafer production. This unexpected policy shift builds on the Inflation Reduction Act of 2022 , which had already spurred new solar panel and cell manufacturing initiatives. The move aligns with the administration's broader efforts to boost domestic manufacturing of key renewable energy components and tackle national security concerns tied to supply chain dependencies. It also comes as US solar manufacturers seek tariffs to counteract the perceived subsidizatio...

A new study by Coalition Greenwich reveals that over 70% of market participants anticipate higher trading costs for US Treasuries due to new margin requirements and clearing fees associated with mandatory central clearing. While these changes aim to make the market safer and reduce systemic risk, they are likely to come at the expense of increased costs and potentially reduced trading volumes. Key Findings: Increased Costs and Reduced Activity : The study, which surveyed 34 market participants including four of the top five Treasury dealers by revenue, found that around 85% of respondents believe that rising margin costs could lead to reduced trading activity. The new Securities and Exchange Commission (SEC) rules require most cash Treasuries and repurchase agreements to use central clearing by the end of 2025 and mid-2026, respectively. Market Safety vs. Cost Concerns : Despite the expected rise in trading costs, the majority of respondents agree that mandatory clearing will enhance m...