Market Review: Global Economy Insights and Investment Outlook

Market Performance Overview This Week

The dollar index experienced fluctuations this week, influenced by mixed US employment and inflation data. Meanwhile, gold continued its record-breaking rise, while silver prices also saw significant gains.

Gold and Silver: Historic Highs

Gold prices surged to new record highs, surpassing previous peaks set in 1980. This surge is attributed to several factors, including concerns about inflation and global economic uncertainty. Silver also experienced a notable increase, driven by industrial and investment demand.

Foreign Currencies: Mixed Movements

Foreign currency exchange rates saw mixed movements this week. The Euro, British Pound, and Australian Dollar rose against the US Dollar, while the US Dollar depreciated against the Japanese Yen. This divergence reflects market expectations regarding the monetary policies of different central banks.

Oil: Surge Driven by Geopolitical Risks

Oil prices rose due to renewed geopolitical risks in the Middle East, in addition to the European Union's plans to impose new sanctions on Russia. These factors led to increased concerns about supplies, pushing prices higher.

Stock Markets: New Highs in the US

Major US stock indexes hit new record highs this week, driven by strong performance from technology companies. However, it should be noted that this rise may not necessarily reflect the true global economic situation, and there may be a correction in the future.

Insights and Analysis from Leading Investors

Leading investors and financial institutions provide valuable insights into market trends and future prospects:

• Morgan Stanley: Sees increasing interest from US investors in the Chinese market.
• Goldman Sachs: Indicates that global hedge funds increased their net purchases of Chinese stocks in August.
• Interest Rate Forecasts: Morgan Stanley anticipates consecutive interest rate cuts by the Federal Reserve, while other banks expect less frequent cuts.
• Gold Price Forecasts: ANZ Bank raised its gold price target for the end of 2025.

Key Events This Week

• US Inflation and Employment Data: Mixed economic data influenced market expectations regarding the Federal Reserve's decisions.
• Changes in the Federal Reserve: The Federal Reserve experienced changes in leadership positions, raising questions about data independence.
• Israeli Attack on Qatar: The attack led to escalating geopolitical tensions in the region.
• NATO Downs Russian Drones: This incident represents a potential escalation in tensions between NATO and Russia.
• Changes in the Gold Market: Tightening rules in China, lifting restrictions in Vietnam, and expansion in the United States.
• Argentinian Elections: The electoral defeat of President Milei led to turmoil in Argentinian financial markets.
• Cambricon's Success in Raising Capital: The company will use the funds for AI chip projects.
• Oracle's Stock Surge: The company's stock surged after signing a major deal with OpenAI.
• Alibaba Launches 'Street Sweep' Map: The company pledged not to politicize the map.
• ECB Holds Interest Rates Steady: Is the rate cut cycle over?
• 'Block France' Protests: The new French President faced widespread protests.
• Death of Trump Political Ally: Charlie Kirk was killed in a shooting.
• Apple Launches iPhone 17: Is the new device a 'disappointment'?