Limit Up! 27th February 2025

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Overnight

Bank of Japan's inflation measure, ex food and energy, moves up in line with Tokyo and Japan's readings.

Big news was, of course, NVIDIA results which were good and temporarily, at least, helped buoy up a nervous market.

Nvidia sales grow 78% on AI demand, company gives strong guidance [CNN]

Lots of talk of equity markets going down, bubble bursting etc etc. Yesterday, at least, this wasn't the case.

Breaking

Trump says EU tariffs announcement coming 'very soon' [BBC]

US House passes budget resolution to cut taxes and spending by trillions [FT]

Taiwan catches Chinese-owned ship in act of cutting subsea cable [FT]

Precious Metals

Gold consolidating, maybe a bull flag forming. Indonesia's announcement of newly created bullion banks marks the start of hoarding by countries, institutions and individuals.?

President Prabowo launches Indonesia's first bullion banks [Reuters]

Bonds

The headlines say

• Stock market bubble bursts
• Bitcoin smashed
• Gold goes illiquid as London goes bust
• Is the US Gold actually in Fort Knox?
• Tariffs on everybody

But the only chart that matters is the US 10 year yield. That yield is still dropping and that is the measure of how confident the global capital markets are that Scott Bessent knows what he doing, and that the US can forge a path to pay down the debt.

Foreign Exchange

The Aussie had been doing well, consolidating in the bear flag but a confirmed break of 0.6285 will probably see it test 0.6130 and maybe back to the spike low of around 0.6100.

New Trump tariff threat to Australia over ‘plundering’ of tech giants [AFR]

Bitcoin

The hack at Bybit was the straw that broke the camel's back. Along with no news about Trump's Bitcoin Special Reserve and general risk-off sentiment. A 30% retrace puts us at 76,000 which is a well signalled level already. Expect either an immediate reversal (market oversold) or a continuation to flush out all weak hands below 70,000. Whatever the outcome the volatility starts here.

Equities

While US equity markets remain volatile, the Hang Seng is the star performer.

Interesting

China to Inject at Least $55 Billion of Fresh Capital Into Several Big Banks [Bloomberg]

Economic Indicators Today