The Daily Market Report.
Focus of the day.
Viva Post – The China’s economy showed signs of recovery in October as government stimulus measures began to take effect. Industrial output and retail sales are expected to grow faster than in September, with economists projecting a 5.6% increase in industrial production and a 3.8% rise in retail sales year-on-year. A long holiday in early October bolstered spending on retail and tourism, while the housing sector saw a slight lift due to new government support, raising property sales by 7.1% year on year — the first positive growth in 2024.
Despite these gains, challenges persist in the housing market, where investment is forecasted to decline by 9.9% over the first 10 months, compared to a 10.1% drop in the previous period. Property values continue their downward trend, affecting consumer confidence and dampening demand for home goods. Meanwhile, steel and car production grew in October, with steel exports reaching their highest since 2015, contributing to one of China’s largest trade surpluses on record.
Although signs of stabilization are emerging, economists caution about the sustainability of this rebound. President-elect Trump’s potential tariffs on Chinese goods loom over the recovery, threatening export earnings. Domestic deflationary pressures persist, with cautious consumer spending possibly hampering broader economic momentum.
The global cryptocurrency market hit a record $3.2 trillion, led by Bitcoin’s rise to $93,480, as Trump’s election spurred optimism for favorable US regulation, with Bitcoin up 30% to $90,000 and Ether climbing 33% to $3,220.
With Bitcoin rising 30% to $90,000 and Ether rising 33% to $3,220, the global cryptocurrency market reached a record $3.2 trillion, a huge driven by the cryptocurrency’s surge to $93,480 following Trump’s election.