FinMark Capital Limited

As the world waits for the US jobs numbers, gold has bounced back after its biggest one day drop since July. Bullion is up 0.5% and on track for a small weekly gain as the market is cautious but hopeful on the broader economic and political landscape. The jobs numbers out later today will be key to the Fed’s next move. On Thursday, the market adjusted its expectations for rate cuts after new jobless claims fell and underlying inflation rose – both things that affect gold. Higher rates make gold less attractive since it doesn’t pay interest so it’s less attractive than interest bearing investments. And the presidential election adds another layer of uncertainty so traders are thinking about market disruptions. Investors turn to gold as a safe haven during times of political and economic stress and as election day approaches that trend may add to demand for gold. So as traders are dealing with economic data and election uncertainty, gold is showing both strength and caution. #gold #finance

✨ Wishing everyone a joyous and prosperous Diwali! May this Festival of Lights illuminate your life with happiness, health, and wealth. As we celebrate with family and friends, let’s embrace the spirit of togetherness and gratitude. Happy Diwali! 🪔🌟 #Diwali2024 #FestivalOfLights

Following Japan's recent election, the yen fell to a three-month low against the dollar, pressured by new political and monetary uncertainties. October's 6.3% decline makes it the weakest performer among G10 currencies, amid concerns about leadership stability and central bank policy. Analysts predict the yen may hit the 155-160 range against the dollar, potentially triggering intervention from Japan's finance ministry if volatility continues.

The S&P 500 has ended its longest streak in nearly 70 years without consecutive daily losses, with a 0.2% drop on Monday followed by a slight decline on Tuesday, marking the first back-to-back losses in 31 sessions since September.

European markets closed in positive territory as the ECB delivered its third interest rate cut of the year, lowering the deposit rate by 25 basis points amidst easing inflationary pressures. The pan-European Stoxx 600 gained 0.84%, led by food and beverage stocks (+1.9%), while telecoms dipped slightly (-0.34%). In contrast, China’s property stocks declined, weighing on the broader CSI 300 index, as U.S. markets rose on strong economic data.

Agustin Carstens, the General Manager of the Bank for International Settlements (BIS), has expressed serious concerns about the role of non-bank financial intermediaries (NBFIs), especially hedge funds, in relation to global financial stability. In a recent interview with the Financial Times, Carstens pointed out that these "shadow banks" function in mostly unregulated spaces, engaging in risky behaviors that could jeopardize the financial system during times of market turmoil or economic distress. This caution echoes earlier remarks from SEC Chair Gary Gensler, who warned about the potential spillover effects of non-bank financial institutions into the broader economy. Although there have been efforts to tighten regulations for these entities, some proposed measures have faced obstacles in the courts. Other regulatory bodies, including those in the EU and Singapore, have also identified the rapid expansion of shadow banks as a significant risk, with NBFIs currently managing assets totaling €42.9 trillion. Carstens stressed that while hedge funds and other NBFIs operate independently from traditional banks, their interconnectedness could create substantial risks for the banking system if problems emerge in the shadow banking sector. As discussions about regulatory oversight progress, it is essential to tackle the increasing influence of these financial intermediaries to protect global economic stability.

Gold prices have not budged as traders also walked a tightrope between the US dollar's strength and expected rate cuts by the Fed. Gold hugged the pivot point at $2,645.01, having carved out a trading range between $2,685.64 and $2,604.39 since the record high of $2,685.42 last month. Against the stable price of gold, market players continued to track moves in US monetary policy and dollar performance. At 12:35 GMT, gold is trading at 2655.55, up 6.77 or +0.26%. The direction of the market will be determined by whether the price of gold can sustain a rally over this key pivot price. Analysts believe the strength of the dollar and how deeply the Fed cuts rates will remain key drivers for the price of gold during the next several weeks. Investors will be keen because all the global economic indicators, together with communications from the Fed, will have a significant effect on market sentiment and trading behavior. Gold remains a very important asset in terms of diversification and an inflationary hedge, especially at this period of economic turmoil.

Dubai is launching a cashless strategy which is set to reshape how transactions are handled in both the government and private sectors. The goal is for 90% of transactions to be fully digital by 2026. This initiative is a part of a larger vision to establish Dubai as a global powerhouse in the digital economy. This strategy signifies economic benefits with projections indicating AED 8 billion annually to Dubai's economy. Under this plan, Fintech is expected to flourish. Dubai is fostering innovation, streamlining processes, and making the financial system efficient, by reducing the dependency on cash. What do you think about this? Let us know in the comments! Source: https://lnkd.in/gNUG_yxd

The markets saw mixed performance last week, with the S&P 500 and Nasdaq posting slight gains while the Dow Jones remained relatively flat. Investors were focused on economic data, particularly jobs and inflation reports, which fueled ongoing concerns about the Federal Reserve's interest rate policy. Tech stocks, particularly in AI and semiconductors, showed resilience, while energy stocks rose on the back of higher oil prices.    Key Highlights:   -All About Jobs – as 254K jobs are added in September against the expected 140K delivering the strongest result in 6 months.  -August job numbers also revised upwards by 72K with unemployment dropping to 4.1%. -2-Year yield rose to 3.92% on Friday after job data. It was 3.70% on Thu and 3.56% last week.  -Oil jumped 9% for the week to nearly $75/barrel on the escalating tension in Middle East. -Energy also happened to be the most profitable sector in S&P 500 with 7% gain for the week. -Factset estimates 4.2% increase in earnings for Q3 as banks gear up to lead the season. -CPI data release is scheduled for Thursday after the rate cut to check if the recent cooling off also continued in September. August data showed inflation slowing down to 2.5% from July’s 2.9%, the lowest since Feb 2021.

Secure your family’s future and legacy with trusts. It’s the smart move for safeguarding significant wealth. #WealthManagement #EstatePlanning #HNWI #UHNW