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Why Is Bitcoin Still Falling?

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What’s in Today’s Report:

  • Why Is Bitcoin Still Falling?
  • ISM Manufacturing PMI Takeaways

U.S. equity futures are higher thanks to the combination of a strong Japanese government bond auction and largely as-expected EU inflation data which are both helping yields stabilize after a sharp rise to start December yesterday.

Economically, the Eurozone’s Narrow Core HICP (Core CPI equivalent) held steady at 2.4% vs. (E) 2.5% in November.

Looking into today’s session, we will get data on domestic Motor Vehicle Sales (E: 15.4 million) which likely won’t have a material impact on markets unless there is a significant drop signaling a potential slowdown in consumer spending.

Additionally, there is one Fed speaker: Bowman (10:00 a.m. ET), and the Treasury will hold a 6-Week Bill auction at 11:30 a.m. ET. Markets are looking for dovish signals via strong demand for short-duration Treasuries and fresh support for a December Fed rate cut.

Finally, there are a few potentially market moving earnings releases today from some AI-sensitive companies including: MRVL ($0.58), CRWD ($0.07), and OKTA ($0.20).

 

Year-End Rally or Not? Three Events to Watch

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What’s in Today’s Report:

  • Year-End Rally or Not? Three Events to Watch
  • Weekly Market Preview: Can the Rebound Continue?
  • Weekly Economic Cheat Sheet: Two of the “Big Three” Monthly Economic Reports This Week

Futures are moderately lower following a sharp drop in cryptocurrencies, hawkish Bank of Japan commentary and underwhelming Chinese economic data.

Bitcoin fell 5% as pressure on the crypto space increased, although there was no specific reason for the declines.

BOJ Governor Ueda told markets the BOJ would strongly consider a rate hike at its next meeting, pressuring stocks.

Economically, the Chinese non-manufacturing PMI fell to 49.5 vs. (E) 50.1, the lowest reading in three years.

Today focus will be on the November ISM Manufacturing PMI (E: 49.0) and the key here is stability, specifically that we do not see the PMI “fall away” from 50 and badly miss expectations (if it does, it could be signaling sudden deterioration in the manufacturing sector, which would be a negative economic surprise).