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- 🖊 What to expect this week
🖊 What to expect this week
and TikTok to get banned?
Good morning investors! Last week was very busy and we’re expecting some more fireworks this week.
Today we cover:
What to expect this week
The latest job report
TikTok to get banned?
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📊 Economy and News
Markets This Week: Inflation, Bitcoin, and Oil
Here’s what to look forward to this week:
Inflation and Fed Policy
U.S. inflation data for November, out Wednesday, will shape expectations for the Federal Reserve’s year-end meeting. Markets anticipate a 25-basis-point rate cut following 75 points of easing since September. However, a higher-than-expected CPI reading could temper further cuts as inflation concerns resurface amid plans for higher tariffs under President-elect Trump.
Stock Market Rally at Risk
The S&P 500 and Nasdaq hit record highs last week, buoyed by rate cut optimism and strong economic data. However, Wednesday’s inflation report could challenge this rally if it signals a slower pace of cuts in 2024.
ECB Rate Decision
The European Central Bank is expected to cut rates again Thursday while lowering growth and inflation forecasts. Persistent trade tensions and sluggish eurozone activity weigh on the outlook, even as inflation shows modest improvement.
Bitcoin Hits $100,000
Bitcoin broke $100,000 after Trump appointed crypto-friendly regulators, sparking hopes for lenient oversight. While bullish targets near $200,000 for 2025 emerge, Bitcoin’s history of volatility tempers long-term optimism.
Oil Prices Slide
Oil prices fell over 1% last week despite OPEC+ extending production cuts to 2026. Concerns about weak demand, particularly in China, continue to overshadow supply controls, keeping prices rangebound.
Key developments this week will test market momentum across inflation, equities, and commodities.
Global hits:
Google sues Consumer Financial Protection Bureau to stop the US from monitoring it like a bank.
US clears export of advanced AI chips to UAE under Microsoft deal, Axios says.
Mexico doing all it can to protect trade agreement with US, Canada, official says.
The job report: Nonfarm payrolls rose by 227,000 for the month, compared with an upwardly revised 36,000 in October and the Dow Jones consensus estimate for 214,000.
The unemployment rate edged higher to 4.2%, as expected.
Traders accelerated their bets on an interest rate cut this month following the payrolls release.
Job gains were focused in health care (54,000), leisure and hospitality (53,000), and government (33,000).
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📈 Stocks
S&P 500 6,090.27 (+0.25%)
DJIA 44,642.52 (-0.28%)
NASDAQ 19,859.77 (+0.81%)
BRENT CRUDE 71.12 (-1.35%)
* Prices as of Dec 8th, 12:20 AM UTC
Time to say bye to TikTok?
TikTok faces a looming ban in the U.S. after a federal appeals court upheld a law requiring its divestiture from Chinese parent company ByteDance by January 19, 2025. The court ruled the law constitutional, citing national security concerns over data access and potential propaganda risks. ByteDance has refused to sell TikTok, and the platform plans to appeal to the Supreme Court.
If enforced, the ban could reshape the U.S. social media landscape. Companies like Google (YouTube), Meta (Instagram Reels), and Snap could benefit significantly. Without TikTok, these platforms might capture its user base, increasing their ad revenue and strengthening their market positions. U.S. firms focused on video content and ad tech could also seize the opportunity to innovate and expand.
The outcome remains uncertain, with TikTok exploring legal avenues and possible political shifts. Regardless, the case underscores the growing intersection of tech and geopolitics, with significant stakes for both industry leaders and everyday users.
Also check: US judge won't revive rule capping credit card late fees at $8. Elsewhere, Boeing plea deal related to Max crashes rejected by judge.
💵 Personal Finance
Ways to make money with stocks - I
Buying and selling stocks is not the only way to make money with stocks. You can earn $$$ by using these tricks too.
Note that these all involve various degrees of risk and is not financial advice. Even if you don’t do any of these, it’s good to know how they work.
Invest money in stocks that pay dividends to enjoy a regular flow of income. Companies usually pay about 4% dividends but some can go up to 20%. However, this income is not guaranteed and not all companies pay dividends so be careful.
Bet where the price is going to move to earn money every time you’re right. The best thing about this option is that money is earned instantly. However, there’s a downside because it’s the same as betting, i.e. you’ll lose money if the price doesn’t move in your desired direction. Called spread betting, this technique doesn’t offer guaranteed results and isn’t popular among serious investors but it can still help you make money. Look at platforms like FxPro and Vantage to get started.
Margin trading is essentially stock trading but it does not involve ownership. It involves borrowing money and using it to enter into trades. You deposit cash into your account, which is less than the amount you can use to trade. Popular among day traders, this technique can make or break you as rewards are exponential but you may lose a large sum of your investment if you don’t play well. Platforms like AvaTrade and XM offer margin trading; However, we suggest that you start with a demo account before investing real money and never use margin unless you know what you’re doing and never invest more than you’re willing to lose.
Watch this video for more on stock markets and corrections:
💰 Be a Better Investor
October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
Resources:
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.