A sense of unease has washed over European stock futures, mirroring a downturn in Asian markets.

This synchronized slide comes in the wake of a Chinese economic conference that failed to ignite the hoped-for investor enthusiasm.

The meeting, which was expected to reveal fiscal stimulus details, left the markets wanting, particularly in its lack of specifics regarding consumption boosts.

As traders recalibrate, risk appetite has notably weakened, casting a shadow over the week’s financial landscape.

Euro Stoxx 50 contracts fell by 0.2%, with the global stock barometer on track to record its most significant weekly drop in nearly a month.

This decline is compounded by the fact that S&P 500 index contracts only saw a slight uptick on Friday following Thursday’s Wall Street sell-off, fueled by concerns over US jobless claims and producer price data.

China’s ambiguous signals and bond market tumult

The economic landscape in Asia was particularly turbulent.

China and Hong Kong’s stock markets led regional declines, as the Central Economic Work Conference concluded without unveiling concrete fiscal stimulus plans, despite the government’s promise to bolster consumption.

While the commitment to lowering policy rates and banks’ reserve ratios was made, the move triggered an unprecedented slide in Chinese 10-year government bonds, falling below 1.8% for the first time in history.

Jason Chan, Senior Investment Strategist at Bank of East Asia, told Bloomberg, “The market may have some hope that the CEWC would give more details on consumption stimulus and property inventory clearance packages, but the turnout was a bit disappointing. Investors may need to wait for more fiscal policy rollout in the first quarter.”

Dollar strength and mixed signals from global economies

The dollar index remained stable, holding onto gains accumulated over the previous five sessions, bolstered by rising Treasury yields.

This surge in the dollar’s value reflects a broader market sentiment shaped by varied economic indicators.

In Japan, confidence among large corporations remained high, which broadly aligned with the Bank of Japan’s stance ahead of its next policy meeting.

However, analysts remain divided on the probability of an impending rate hike.

Meanwhile, South Korea’s equity benchmark saw a momentary recovery following President Yoon Suk Yeol’s failed attempt to impose martial law.

A report from local newspaper Munhwa Ilbo suggested that more than eight members of the ruling People Power Party support Yoon’s impeachment, the minimum number needed for approval.

In a somewhat more sobering turn, shares of DigiCo Infrastructure REIT plummeted as much as 10% on their Sydney debut, attributed to valuation concerns.

Adding to the patchwork of global economic narratives, Indian government data revealed that the country’s inflation had cooled last month, providing a sigh of relief to its newly appointed central bank chief.

Central banks and the rate cut jigsaw puzzle

The narrative of global financial markets is further complicated by the varied actions of central banks.

The European Central Bank, aligning with expectations, trimmed borrowing costs by 25 basis points, signaling further cuts in future meetings.

The Swiss National Bank went a step further, implementing a more substantial 50 basis point cut, outpacing market forecasts.

On the other hand, the US economic data released on Thursday presented a muddled picture of the American economy.

Although jobless claims rose more than anticipated, producer price data gave mixed signals.

US wholesale inflation accelerated in November, due to the steep rise in egg prices, a rather unusual factor.

Despite this confusing mix of data, expectations for a US rate cut next week remained steadfast.

Swap market pricing showed that a 95% level of confidence exists that the central bank will reduce borrowing costs by 25 basis points at its December meeting.

Commodities in the crosshairs: oil, gold, and Bitcoin

The commodities market saw its own share of drama.

Oil prices are on track for a weekly advance, as concerns about stricter US sanctions against Iran and Russia offset worries about a looming global glut next year.

Gold prices rebounded, partially recovering from a 1.4% drop on Thursday.

Bitcoin continues to make headlines, trading around the $100,000 mark, further underscoring the volatility and fascination surrounding the cryptocurrency markets.

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MercadoLibre stock price has suffered a harsh reversal in the past few weeks as it moved into a technical correction. MELI has fallen by over 13.5% from the year-to-date high of $2,158 as concerns about its credit business slowdown continued. So, is it safe to buy the MELI stock?

MercadoLibre is a dominant player in Latin America

MercadoLibre, a Brazilian company, has become one of the fastest-growing company in Latin America. Its annual revenue has grown from over $2.2 billion in 2019 to over $14.4 billion in the last financial year.

This growth happened as more customers continued signing up to its platform, and as the company added more countries into its ecosystem. In addition to Brazil, the company has become a major player in other countries like Argentina, Columbia, and Mexico.

MercadoLibre has also added more services into its portfolio. For example, it has become a major player in the fintech industry, through Mercado Pago, a solution that lets users save money, take loans, buy insurance, send money, and handle other transactions easily. 

This growth has transformed MercadoLibre into one of the biggest companies in the Latin American region with a market cap of over $96 billion. 

Why MELI stock has retreated

MercadoLibre stock price has retreated after the company published the last financial results.

These numbers showed that its gross merchandise value (GMV) rose by 14% in the third quarter to over $12.9 billion. This growth happened as the company sold 455.9 million items.

Consequently, the net revenue jumped by 35% to $5.3 billion, a figure that was higher than the full amount it sold in 2020. Its net income rose to $397 million, representing a 7.55 margin. 

MercadoLibre’s growth was spread across all its division. For example, its fintech business had over 56.2 million monthly active users, a big increase from the 41.5 million who used its service in the same period last year.

Assets under management rose to $7.6 billion, while its credit portfolio rose to $6.06 billion. The later explains why the MELI stock has retreated as the net interest margin after losses continued falling, reaching 24.2% in the last quarter. It had a net interest margin of 39.8% in the same period last year. Therefore, analysts expect that this division will continue slowing in the coming months.

Read more: MercadoLibre stock has surged to a record high: still a buy?

MercadoLibre and its valuation

The other reason why the MercadoLibre stock price has crashed is that investors believe that it is a highly overvalued company. Data shows that it has a forward price-to-earnings ratio of 56.58, much higher than the sector median of 18.

Other popular e-commerce companies have a smaller valuation metric than that. For example, Amazon, the biggest player in the industry, has a forward P/E of 45, while eBay has a multiple of 13.

MELI is also highly valued than other companies that are growing faster than it. For example, NVIDIA, a company that is having double-digit growth rate has a forward P/E ratio of 47. 

Also, the MELI stock has dropped as investors anticipate that the ongoing tightening by Brazil’s central bank will affect demand.

MercadoLibre stock price analysis

MELI stock chart by TradingView

The daily chart shows that the MELI share price formed a double-top pattern at $2,155. This is one of the most popular bearish patterns in the market. 

The stock has moved below the 50-day and 100-day Exponential Moving Averages (EMA). Oscillators like the Relative Strength Index (RSI) and the MACD have all pointed downwards.

Therefore, the stock will likely continue falling as sellers target the key support level at $1,700. This is an important level that connects the lowest swings since January last year. A break below that level will point to more downside.

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Indian equity markets witnessed a steep sell-off on Friday, with the benchmark indices Sensex and Nifty shedding over 1%.

The Sensex dropped 1,147 points, or 1.41%, to 80,142, while the Nifty50 lost 337 points, or 1.37%, touching 24,211, as of 10:35 am, India time.

Investors were spooked by weak global cues, higher domestic inflation, and persistent uncertainty over China’s economic stimulus measures.

The sell-off wiped ₹6.5 lakh crore from the total market capitalization of BSE-listed companies, now at ₹451.65 lakh crore.

Interest rate-sensitive sectors also saw significant losses.

The Nifty Bank, Auto, Financial Services, PSU Bank, and Realty indices dropped between 1.5% and 2.7%.

Meanwhile, India VIX, a measure of market volatility, spiked 9.9% to 14.5, signalling heightened investor anxiety.

China stimulus ambiguity drags down metal stocks

The Nifty Metal Index was the worst performer of the day, slumping 5% as uncertainty loomed over China’s economic policies.

Steel Authority of India (SAIL) and NMDC led the decline with over 4% losses, while Tata Steel, JSW Steel, and Hindustan Copper shed more than 2%.

China, a key driver of global metal demand, has signaled potential economic stimulus, including interest rate cuts and adjustments to banks’ reserve requirements.

However, the lack of clarity on the timing and scale of these measures has dampened investor sentiment, triggering profit booking across metal stocks.

“The metal rally seen after China’s initial stimulus announcements in September has fizzled out as the broader market sentiment remains weak,” said Gaurang Shah, Head Investment Strategist at Geojit Financial Services.

Rising inflation adds to market pressure

India’s retail inflation eased to 5.48% in November, falling within the Reserve Bank of India’s (RBI) target range.

However, rural inflation surged to 9.10% from 6.68% in October, and urban inflation rose to 8.74% from 5.62%.

The spike in inflation levels, particularly in rural areas, has raised concerns over its potential impact on monetary policy decisions.

Higher inflation could compel the RBI to maintain a cautious stance in its upcoming policy review, potentially delaying rate cuts that many investors are hoping for.

Stronger dollar deters foreign investments

The US dollar continued its ascent, with the dollar index rising 0.13% to 107.1.

A stronger dollar erodes the attractiveness of emerging markets like India, as it increases the cost of foreign debt and reduces the appeal of local equities.

“The rising dollar is a concern since it can lead to imported inflation,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Outlook remains cautious

The combination of global uncertainty, domestic inflation concerns, and weak metal demand has created a challenging environment for Indian markets.

While some relief could come from clarity on China’s economic policies, analysts expect near-term volatility to persist.

“Investor confidence may only return with tangible stimulus measures from China and a clear signal from the RBI on interest rates,” said Jeff Ng, Head of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation.

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Digital assets appear ripe for 2025 growth as president-elect Donald Trump promises a money-making environment for crypto enthusiasts.

Meanwhile, the industry already displayed optimism, with Bitcoin skyrocketing past $100K following Trump-driven rallies.

Such sentiments have seen many individuals hunting for profitable projects, and iDEGEN appears to stand out.

The AI cryptocurrency is witnessing renewed interest from investors, testified by its fast-paced ICO.

The project has raised over $4.7 million, with approximately 1 billion coins sold.

That underscores confidence and loyalty in iDEGEN.

Let’s check what experts expect from the market in 2025 and whether that would keep iDEGEN elevated after its January official launch.

Bad players out of the crypto market

The digital assets sector seems to have seen everything, from losing billions to fraudsters to ‘billionaires’ collapsing their empires due to greed.

However, the latest events have also cleansed the industry.

We’ve witnessed malicious individuals like Sam Bankman-Fried jailed and scam platforms eliminated.

Also, the former Binance CEO admitting his wrongdoings and serving his time opens the doors for the industry’s purification and recovery.

Upcoming regulatory clarity

The crypto market braces for regulatory changes to ensure clarity for investors, the public, and businesses.

While Gary Gensler’s SEC leadership dented the digital assets sector in the past two years.

Meanwhile, progressive developments such as Europe’s MiCA framework are shaping the industry.

Donald Trump has already picked Gensler’s replacement, a pro-crypto entrepreneur.

Also, Ukraine’s decision to regulate cryptocurrencies early next year paints a bullish picture for digital assets.

Trends set to dominate

Specific narratives, such as meme coins, RWA, DePIN, and AI, have proven to outperform during broad-based bull runs.

For instance, the latest bull rally saw meme tokens like PEPE flying to new all-time highs as old coins broke their nearest resistances.

However, themed tokens have faced criticism lately, which could see crypto players switching to stable technologies such as AI.

The latest developments have signaled increased integration between crypto and artificial intelligence.

iDEGEN appears ready to dominate the AI crypto industry in the upcoming years with its unique approach and pricing model.

What is iDEGEN and why it could drive markets in 2025

Experts believe AI will be among the top narratives in the cryptocurrency space in the upcoming months and years.

iDEGEN is an innovative experiment that’s grabbing the attention of crypto investors with its never-seen-before performance.

The project has raised over $4.7 million less than 20 days after its launch.

Moreover, its price has soared by 21,000% to $0.0233 at press time.

iDEGEN is an AI crypto project that uses data from the digital assets community to learn everything.

It will post hourly on X (formerly Twitter) “with no moderation or training guardrails” and reply to each tweet.

The upcoming year presents lucrative opportunities for the crypto market through enhanced regulations and technological innovations.

Enthusiasts will likely be watching trends that will shape the much-awaited altcoin season.

With AI expected to dominate cryptocurrency trends, iDEGEN’s performance sets it for massive surges after its official launch in January.

However, research remains crucial when navigating through the markets.

The digital assets market remains volatile, with assets presenting wild price actions.

You can visit their official website for more info about the viral AI project.

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The German economy, long considered a powerhouse of global trade, experienced an unexpected setback in October, with exports declining more than anticipated.

This downturn casts a shadow on hopes for a swift recovery in external demand, signaling a potential delay in the much-anticipated rebound.

According to data released by the federal statistics office on Friday, German exports contracted by a significant 2.8% compared to the preceding month.

This figure surpassed even the most pessimistic forecasts, exceeding the 2% drop predicted by a Reuters poll, underscoring the depth of the slowdown.

Trade surplus shrinks amid global demand weakness

The decline in exports had a direct impact on Germany’s trade balance, which saw a marked contraction in October.

The foreign trade balance recorded a surplus of 13.4 billion euros ($14.02 billion), a notable decrease from the 16.9 billion euro surplus in September and a sharp fall compared to the 18.9 billion euros recorded in October of the previous year.

This shrinking surplus highlights the challenges facing Germany’s export-oriented economy amidst weakening global demand.

The data from the statistics office revealed that exports to EU countries experienced a modest 0.7% decrease, while those to third countries saw a more substantial decline of 5.3%.

US and China lead export declines, UK bucks the trend

Examining the regional breakdown of exports reveals a nuanced picture of Germany’s trade relationships.

While the United States remained the primary destination for German goods in October, exports to the US experienced a sharp decline of 14.2% compared to the previous month.

This significant drop suggests a weakening demand from a key trading partner.

Similarly, exports to China also decreased by 3.8% in the month.

On the other hand, exports to the United Kingdom bucked the trend, witnessing a modest increase of 2.1%.

This geographical variance underscores the complex and evolving nature of global trade dynamics impacting Germany’s export landscape.

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