Precious metals hit new highs, U.S. stocks continue to rise! Google's parent company Alphabet makes a big move in energy infrastructure

Under the influence of multiple positive factors, global asset trends are showing divergence but overall upward momentum. Among them, the precious metals market performed the best, with gold, silver, and copper prices all hitting record highs, indicating a cautious attitude in the market towards economic prospects. At the same time, the US stock market has risen for three consecutive days, and Google’s parent company Alphabet’s announcement of a large-scale energy infrastructure acquisition reflects strategic importance placed by tech giants on future power supply.

Precious Metals Market Fully Upward, Breaking Multiple Records

Supported by multiple factors such as rising geopolitical uncertainties, the further fermentation of Federal Reserve (Fed) rate cut expectations, and a softening US dollar index, the precious metals sector rose across the board.

Gold increased by 2.43%, breaking through the $4,400 mark, with a high of $4,449 per ounce; silver rose by 2.82%, reaching a new high in over a year at $69.44, approaching the psychological level of $70; London copper futures once rose to $11,996.18 per ton, up 1.01%; spot palladium refreshed its high for the third year in a row, reaching a maximum of $1,800.85 per ounce, up 4.86%; spot platinum also hit a new high, rising to $2,096.81 per ounce at one point, an increase of 6.07%.

US Stocks Rise for Three Days, Tech Stocks Lead

Thanks to the market’s optimistic sentiment before Christmas, the VIX fear index fell 5.5% to a more than one-year low, and the three major US stock indices achieved their third consecutive day of gains. The Dow Jones Industrial Average rose 0.47%, the S&P 500 increased by 0.64%, and the Nasdaq Composite gained 0.52%, while the China Golden Dragon Index rose 0.58%.

Tech stocks performed prominently, with NVIDIA closing up 1.5%, Tesla up 1.6%, Oracle rebounding 3.3%, and Micron Technology rising 4%. European stocks showed a correction, with the UK FTSE 100 down 0.32%, France’s CAC 40 down 0.37%, and Germany’s DAX 30 down 0.02%.

Alphabet Spends $4.75 Billion to Acquire Clean Energy Developer

Google’s parent company Alphabet announced on Monday that it has reached a final agreement to acquire US clean energy developer Intersect Power for $4.75 billion in cash, along with assuming its related debts. CEO Sundar Pichai stated that this acquisition will help Alphabet expand energy capacity and reimagine energy solutions.

Intersect Power currently has $15 billion worth of operational or under-construction assets, with an expected total installed capacity of about 10.8 gigawatts by 2028, more than 20 times the power generation of Hoover Dam. As generative AI continues to drive electricity demand soaring, large tech companies are increasing investments in energy enterprises, and Alphabet’s move is a strategic layout to adapt to industry development trends.

Fed Officials Speak, Rate Cut Expectations Support Risk Assets

Federal Reserve officials stated that if the Fed does not continue to cut rates next year, there may be a risk of triggering an economic recession, and emphasized that rising unemployment should prompt officials to maintain an accommodative policy. The official believes that changes in unemployment data should lead market participants to a dovish shift, implying that the rate cut process is expected to continue.

Global Forex and Commodity Markets

The US dollar index fell 0.48% to 98.24, USD/JPY declined 0.44%, and EUR/USD rose 0.45%. WTI crude oil increased by 2.49%, trading at $57.95 per barrel.

In cryptocurrencies, Bitcoin’s 24-hour decline was 0.06%, quoted at $88,587; Ethereum’s 24-hour increase was 0.25%, quoted at $3,008. The US 10-year benchmark Treasury yield is approximately 4.16%, up 2 basis points from the previous trading day.

Hong Kong night session index futures: Hang Seng Index night session futures closed at 25,909 points, up 95 points; China Enterprises Index night session futures closed at 8,976 points.

IMF Data Shows Decline in US Dollar Reserves Share

Data released by the International Monetary Fund shows that in the third quarter, the share of US dollar in global currency reserves decreased to 56.92%, down from 57.08% in the second quarter. During the same period, euro-denominated reserves quietly increased to 20.33%, and yen-denominated reserves rose from 5.65% to 5.82%.

This data reflects adjustments by global central banks in reserve asset composition, with the dominance of the US dollar in global reserves showing a slow but steady decline.

Important Economic Events Today

Australia’s RBA monetary policy meeting minutes, Canada’s October GDP monthly rate, US Q3 real GDP annualized quarterly initial estimate, US Q3 real personal consumption expenditures quarterly initial estimate, US Q3 core PCE price index annualized quarterly initial estimate, US October durable goods orders monthly rate, US November industrial production monthly rate, US December Conference Board consumer confidence index, US December Richmond Fed manufacturing index, Canada’s RBA monetary policy meeting minutes, and US API crude oil inventories for the week ending December 19 are all upcoming releases.