The US economic data, including the services and manufacturing PMIs, exceeded expectations and indicated that the economy is in good shape. The Bank of Canada is cautious about rate cuts, while the eurozone’s data shows a weak economy that could lead to rate cuts by the ECB. Oil prices are consolidating, gold is holding above ,000, and bitcoin is testing a potential new area of resistance.
The Bank of Japan (BoJ) has decided to keep interest rates and its yield curve control policy unchanged, indicating that a decision on negative rates may come in the future. The central bank is waiting for the outcome of spring wage negotiations to determine if price pressures are filtering through to the economy in a sustainable way. The BoJ also suggested that the first rate hike won’t necessarily come alongside new economic forecasts. The yen is rapidly falling, raising the question of whether the Japanese Ministry of Finance will intervene or tolerate the currency’s movements. Oil prices remain uncertain due to factors such as the economy, interest rates, OPEC+, and the Middle East. Gold continues to trade above ,000 despite traders reducing expectations for interest rate cuts. Bitcoin has experienced a decline, falling below ,000, but the focus is on what could generate excitement and further gains in the cryptocurrency market.
The ‘big five’ tech giants (Apple, Microsoft, Google-parent Alphabet, Amazon, and Facebook’s Meta) collectively added .9 trillion to their market cap in 2023, recovering all the losses they experienced in 2022. This represents the highest figure in the market’s history. The rise of AI, along with the improving economy and slowing inflation, has contributed to the tech sector’s strong performance. The Nasdaq jumped 32% in the first half of 2023, powered by Apple’s rally and Nvidia’s boom. Meta was the best performer among the big tech group, with its market cap surging by 188% year-over-year. Amazon witnessed the second-largest increase of 84%, while Microsoft and Alphabet’s market caps jumped by 55%. Apple’s stock also saw a 45% increase since December 2022.
The fact described in the text is that Bitcoin ranks tenth among the most significant assets in the world with a market cap of over 2.77 billion.