What a week! The Fed cut rates by 0.25 bps yesterday, as did the BoE, and Trump won with 295 seats to Harris's 226. Inauguration Day is set for Jan. 20. So, what’s the next big story? Perhaps it’s the power struggle at the Fed. Yesterday, Jerome Powell made it clear he’s ready to defend the U.S. central bank from political pressure following Trump’s re-election, stating he wouldn’t resign if asked and asserting that the incoming president lacks the authority to fire him or other senior Fed leaders. “No,” Powell said firmly on Thursday when asked if he would step down at Trump's request.
In China, the CSI closed down 1% as investors debated whether any measures from the National People's Congress Standing Committee meeting would be enough to counter the threat of higher tariffs under Trump’s second term. In Japan, the Nikkei closed up 0.3%, though Nissan Motor shares slumped as much as 10%, touching the lowest level since October 2020, after announcing plans to dismiss 9,000 workers and cut a fifth of its manufacturing capacity due to plummeting net income in the first half.
In other markets, Bitcoin was little changed at $75,986.85, Ether rose 0.9% to $2,921.05, and the yield on 10-year Treasuries advanced by one basis point to 4.34%. West Texas Intermediate crude fell 0.8% to $71.75 a barrel but is still on track for a weekly gain, while spot gold dropped 0.7% to $2,687.20 an ounce. Data-wise, the U.S. Michigan Consumer Sentiment stands out, along with speeches from the BoE’s Pill and the Fed’s Bowman.
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
