This week, Nickel, used in stainless steel and electric-vehicle batteries, surged as much as 250% in just two days to trade briefly above $100,000 a ton, in what otherwise can only be described as a parabolic move.
Xiang Guangda a.k.a 'Big Shot' -- who controls the world’s largest nickel producer, Tsingshan Holding Group Co. was the main culprit behind the move, having amassed a short position on the London Metal Exchange (LME) is in the region of 100,000 tons of nickel.
We look at the mechanics behind the short squeeze and explain how the LME ring works, and whether market manipulation and governance issues plague the last remaining open outcry floor in Europe.
Also up for discussion, is the 20-for-1 stock split announced by mega-cap tech stock Amazon, its first split since 1999 and fourth since Amazon’s IPO in 1997. Find out how a stock split works in practice, why companies choose to do it, and what it means for the share price.
Finally, we talk about fixed-income fund manager PIMCO, who is reported to have billions of dollars riding on the economic fallout from Vladimir Putin’s invasion of Ukraine, after amassing a wager worth at least $1bn in derivatives markets that the country will NOT default. We explain how Credit Default Swaps (CDS) work and why sanctions on Russia may have unintended consequences on the West.
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EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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