"Wall Street Ends Positive Year as China's Growth Slows; Bitcoin and Gold Shine"
STOCK MARKET NEWS DATED:- 31-12-2024
Wall Street is trading slightly lower on Tuesday, the final trading day of a year that has overall been positive for the markets. Meanwhile, China's manufacturing sector expanded in December, although at a slower pace than anticipated, and both Bitcoin and gold are set to end the year with significant gains.
China's Manufacturing Sector Performance
China’s manufacturing activity grew for the third consecutive month in December, bolstered by new stimulus measures, according to purchasing managers index (PMI) data released on Tuesday. The PMI stood at 50.1, indicating expansion as it remained above the critical 50 threshold, though it fell short of November's reading of 50.3.
The survey noted that most key components of the PMI were above the expansion mark, with manufacturing enterprises maintaining rapid production activity. Beijing has committed to more active fiscal policies and slightly looser monetary approaches for 2025. Additionally, the government is expected to introduce targeted fiscal measures to counter challenges, such as the tariffs imposed by the U.S.
Beyond manufacturing, strong consumer activity drove growth in other sectors. The Non-Manufacturing PMI rose to 52.2, boosting the composite PMI to the same level, up from 50.8 in November. This reflects broad-based economic resilience.
China's economy is projected to grow by approximately 5% in 2024, according to President Xi Jinping, as reported by state media.
Broader Market Trends
Bitcoin and gold have shown robust performance throughout the year, positioning themselves to close with substantial annual gains.
2. Futures Slip as Wall Street Prepares to Close a Stellar 2024
U.S. stock futures saw slight declines early Tuesday in quiet trading, leading into the final session of what has been a highly positive year for markets.
As of 03:45 ET (08:45 GMT), Dow futures were down 6 points (0.1%), S&P 500 futures fell 5 points (0.1%), and Nasdaq 100 futures dropped 33 points (0.2%).
Major indices are set to close the year with notable gains: the S&P 500 up approximately 24%, the Dow Jones Industrial Average up 13%, and the Nasdaq up around 30%.
Markets have been buoyed by optimism surrounding one of the Federal Reserve’s most aggressive interest rate hiking cycles, fueling hopes for sustained economic growth. Additionally, President-elect Donald Trump’s reelection in November lifted investor sentiment, as expectations rose for deregulation and lower corporate taxes, despite lingering concerns about potential trade conflicts.
With limited economic data scheduled for Tuesday and markets closed on Wednesday, attention will shift to upcoming unemployment and ISM manufacturing PMI data later in the week, along with next week’s official jobs report.
3. Bitcoin Faces Monthly Decline
Bitcoin ticked up slightly on Tuesday during low-volume year-end trading but is set to post its first monthly decline since early August.
At 03:45 ET, Bitcoin rose 0.5% to $94,297.0 but has recorded weekly losses of over 4%, marking its third consecutive weekly drop. The cryptocurrency has fallen in five of the past six sessions.
Still, Bitcoin is poised to end the year with a massive annual gain of roughly 120%, having hit a record high above $100,000 in November following Trump’s reelection. His anticipated pro-crypto policies have fueled optimism, with analysts expecting regulatory changes favorable to the sector.
The digital asset market also benefited earlier in the year from the SEC’s approval of the first U.S. spot Bitcoin ETFs, broadening its appeal to mainstream investors. Looking ahead to 2025, many experts forecast further gains, with Bitcoin potentially doubling to reach $200,000.
4. Gold Shines in 2024 with Outstanding Gains
Gold prices edged higher on Tuesday, capping a remarkable year driven by Federal Reserve rate cuts, geopolitical tensions, and robust central bank purchases.
At 03:45 ET (08:45 GMT), spot gold rose 0.4% to $2,615.85 per ounce, while February gold futures increased by 0.4% to $2,627.50 per ounce.
The precious metal has surged over 25% in 2024, largely due to the Fed’s significant rate cuts earlier in the year and persistent geopolitical instability.
Although gold prices climbed for most of the year, momentum slowed after the Fed's December meeting, where officials signaled fewer rate cuts for 2025. Investors now await upcoming U.S. economic data that could influence the Fed's future monetary policy and President-elect Trump’s trade policies.
5. Oil Gains on Chinese Manufacturing Growth but Ends 2024 Down
Crude oil prices increased on Tuesday, supported by signs of growth in China’s manufacturing sector. However, oil is set to record its second consecutive annual loss due to ongoing demand concerns in major consuming countries.
By 03:45 ET, U.S. crude futures (WTI) rose 0.8% to $71.53 per barrel, while Brent crude climbed 0.7% to $74.48 per barrel.
China’s manufacturing PMI data for December indicated a third consecutive month of expansion, driven by new stimulus measures, despite slower-than-expected growth.
The oil market’s outlook hinges on China’s ability to sustain economic recovery as the world’s largest oil importer, alongside concerns about potential oversupply from non-OPEC producers.
For 2024, Brent crude is on track for a 3% annual decline, while WTI remains flat.
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Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or economic advice. The information provided is based on available data and sources at the time of writing and may be subject to change. Readers are encouraged to perform their own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or actions taken based on the content of this article.
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