Gold Surges Past $4460 Amid Rate Cuts and Geopolitical Tensions; Tesla Nears $500.

Economic Insights and Market Trends

Fed's Stance on Interest Rates

Milan, a Federal Reserve governor appointed by Trump, stated on Monday that he does not foresee an economic recession in the short term. However, he emphasized that rising unemployment rates should prompt the Fed to continue lowering interest rates. He noted that if no new appointments are made by the end of January, he will remain in his position.

Japan's Monetary Policy Outlook

Former Bank of Japan official Makoto Sakurai warned that the central bank might raise interest rates three more times, potentially reaching 1.5% by early 2028. He cautioned that aggressive fiscal spending could backfire due to rising inflation.

Precious Metals Surge

Gold and silver prices hit record highs, with gold rising 2.43% to $4467.63 and silver up 2.77% to $69.36. Analysts attribute this surge to expectations of Fed rate cuts and geopolitical tensions, which enhance the appeal of these precious metals.

AI's Economic Impact

Bank of America CEO Brian Moynihan noted that AI investments are beginning to significantly support the U.S. economy, predicting strong growth despite a slowing job market.

Chinese Stock Market Predictions

Goldman Sachs forecasts that Chinese stocks will continue to rise, potentially increasing by 38% by the end of 2027, driven by a reassessment of the tech sector's value and increased household savings flowing into the market.

Apollo's Cautionary Measures

Apollo's CEO warned of high asset prices and geopolitical risks, leading the firm to accumulate cash and reduce leverage in anticipation of potential market turmoil.

U.S. Stock Market Performance

On Monday, U.S. stocks closed higher for the third consecutive day, with the Nasdaq up 0.52%. Notable tech stocks like Tesla and Nvidia saw gains, while others like Apple and Microsoft experienced slight declines.

Nvidia's Growth Projections

Nvidia's GB300 AI server shipments are expected to reach 55,000 units next year, driven by major clients like Microsoft and Meta. The next-generation Vera Rubin 200 platform is also set to launch in Q4 2024.

Alphabet's Acquisition

Alphabet announced a $4.75 billion acquisition of Intersect, a data center and energy infrastructure company, which includes assuming its related debts.

Honeywell's Revised Forecast

Honeywell lowered its Q4 sales expectations, projecting adjusted earnings per share between $2.48 and $2.58.

Market Movements in Hong Kong

On December 22, net purchases of Hong Kong stocks reached HKD 31.26 billion, with significant investments in SMIC and Xiaomi, while China Mobile faced net sell-offs.

Vanke's Bond Extension

Vanke's proposal to extend a 2 billion yuan bond was not approved, but the grace period was extended to 30 trading days, allowing the company more time to manage its debt.

Chipmaker's IPO Success

Chipmaker Birran Technology's IPO in Hong Kong saw a 47-fold oversubscription on its first day, aiming to raise up to HKD 4.85 billion.

Cathay Pacific's Profit Growth

Cathay Pacific expects to achieve consecutive annual profit growth for the first time in a decade, projecting net profits to exceed HKD 9.88 billion.

This summary encapsulates key economic insights and market trends, highlighting the Fed's monetary policy, Japan's interest rate outlook, precious metals performance, and significant corporate developments.