Second trading week 2024. Seemingly calm, the waves are quiet, but the undercurrent is surging!

The US CPI data for December, which will be released this week, has attracted much attention. Last month, the US core CPI growth rate in November remained flat at 4% year on year, with no signs of cooling down, while the November CPI rose 3.1% year on year, and the increase slowed slightly. The analysis points out that inflation in the service sector is still high, while commodity deflation continues. Although price pressure has receded, a strong labor market continues to drive consumer spending and the overall economy. The market's focus is on whether the Federal Reserve can effectively resist inflation in the last mile, with a particular focus on the performance of the service sector.

On Friday, the December non-farm payroll report released by the US showed that the number of employed people surged 216,000, the unemployment rate remained low at 3.7%, and hourly wage growth accelerated. However, the December ISM service data released after the market unexpectedly plummeted to 50.6, which almost came to a standstill, causing concerns and fluctuations in the market. These two sets of data are in opposite direction, causing a “violent roller coaster” in the US bond market, and investors sit on the sidelines when uncertain about the Federal Reserve's interest rate path.

Furthermore, the Bitcoin ETF approval process has also become the focus of market attention. According to reports, the SEC requires issuers seeking to list Bitcoin ETFs to submit a final rule change proposal. Among them, BlackRock expects its Bitcoin spot ETF to be approved on January 10, and ETFs from other asset management companies are also expected to be approved. This news raised the market's expectations for digital asset ETFs.

Overall, this week will be a critical time for investors to keep a close eye on developments in the US economy and financial markets.

======= I am a dividing line =======

Welcome to register for the first Caiyou Dao sharing session in 2024