The dollar index witnessed a notable surge, reaching its highest level in over two years, marking a pivotal moment as the new trading year commencesInvestors, keenly attuned to the unfolding economic landscape, are bracing themselves for a series of uncertain eventsA statement from HSBC emphasized that virtually every asset class has begun experiencing losses, largely attributed to the hawkish signals emitted by the Federal Reserve during its December meeting.

As evidence of its resilience, the dollar index climbed 0.7%, achieving its highest position since November 2022. Susannah Streeter, head of currency and market analysis at Hargreaves Lansdown, commented on the situation, stating, "Consumers and businesses are learning to adapt to the impacts of high interest rates, while the unemployment rate remains low, contributing to economic growth that exceeds expectations."

In the currency market, the euro experienced a drop of 0.9% against the dollar, settling at 1 euro to 1.0267 dollars, marking its lowest level since November 2022. Likewise, the British pound declined by 1.1%, positioning at 1.2381 dollars, its lowest point in over eight monthsMarket predictions indicate an improvement in European economic growth by 2025, although forecasts for Europe remain pessimistic when contrasted with the U.S., especially given the backdrop of several looming uncertainties.

Recent data revisions signaled stalling growth within the UK's economy during the third quarterEconomists warned that persistent structural issues could weigh heavily on Germany, France, and other Eurozone economies this yearThese forecasts have significantly influenced the currency markets in recent months, with inflation risks from various events poised to lead the Federal Reserve to reduce the magnitude of interest rate cuts by 2025. Meanwhile, the European Central Bank and the Bank of England displayed a slightly dovish stance during their December meetings.

According to Mohamad Al-Saraf, an assistant in foreign exchange and interest rate strategy at Danske Bank, the prevailing bullish sentiment towards the dollar, coupled with waning confidence in the Fed's rate-cut trajectory for 2025, continues to bolster the dollar's strength

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Al-Saraf highlighted crucial data points for assessing the robustness of the U.S. macroeconomy, including initial jobless claims reported on Thursday, the forthcoming ISM manufacturing report, and next week's non-farm payroll figures.

He mentioned that the euro might revert to parity with the dollar in the medium termHowever, he cautioned that market expectations of less than two 25 basis point rate cuts this year could be overly optimistic, and any unexpected negative data from the U.S. economy might trigger a dollar pullback.

Furthermore, both gold and crude oil prices experienced significant gainsNYMEX WTI crude oil rose by 1.95%, priced at 73.12 dollars per barrel, while COMEX gold climbed 1.14% to reach 2671.2 dollars per ounce.

// U.SStock Market Performance //

The U.S. stock market experienced fluctuations on its first trading day of the New Year, with the Dow Jones Industrial Average falling by 151.95 points, closing at 42,392.27, a decline of 0.36%. The S&P 500 Index slid by 0.22%, ending at 5,868.55, while the Nasdaq Composite Index dipped 0.16%, settling at 19,280.79. Notably, the S&P 500 and Nasdaq indices have now witnessed five consecutive days of decline, the longest such streak since April 2024.

Additionally, the Wind U.STechnology Seven Giants Index decreased by 0.3%. HSBC noted that the hawkish messages relayed by the Federal Reserve in December have led nearly every asset class to begin "suffering losses."

Max Kettner, the chief multi-asset strategist at HSBC, commented in a report on Thursday, "The Fed's hawkish pivot has triggered a further rise in yields, placing us in what we term a dangerous zone." This situation indicates that January might remain volatile for almost all asset classes.

Technology giant Apple weighed down the market, witnessing a 2.6% declineTesla's stock plummeted by 6% following a report indicating a drop in annual deliveries for 2024. In contrast, chip manufacturer Nvidia saw a 3% increase, providing some offset to the declines across other major tech stocks.

On Thursday, bond yields experienced fluctuations, with the benchmark 10-year U.S

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Treasury yield surging to nearly 4.6% before retreatingFor investors concerned about stock market valuations, elevated rates may render fixed income investments more attractive.

"If we want to avoid purchasing at historical highs, there's still a lot of cash to be made," remarked Liz Young-Tomas, head of investment strategy at SoFi.

// Apple Launches Discount Mode

On January 2, Apple's official Chinese website announced a New Year promotion set to run from January 4 to 7. During this event, consumers can save up to 800 RMB when purchasing eligible products through specified payment methods, with a limit of two units per product category per customer.

The promotion encompasses a nearly complete range of Apple products, including iPhones, Macs, iPads, Apple Watches, AirPods, and Apple Pencils. According to the official website, purchasing the iPhone 16 Pro or iPhone 16 Pro Max offers a discount of 500 RMB, with the iPhone 16 and iPhone 16 Plus providing 400 RMB savings, and the iPhone 15 and iPhone 15 Plus yielding 300 RMB off

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Meanwhile, buyers of the iPhone 14 or iPhone 14 Plus can save 200 RMB.

In addition, buyers of the 15-inch MacBook Air (M3) will save 800 RMB, while the 13-inch MacBook Air (M3) offers a 700 RMB discount, and the 13-inch MacBook Air (M2) provides a 600 RMB savings.

However, Apple stated that the inventory of participating products in physical Apple Stores is limited: 29300 iPhone devices, 3500 iPads, 530 laptops, 8350 Apple Watches, 2590 AirPods, and 940 Apple PencilsAll items are available only while supplies last.

Reports indicate that when inquired about price adjustments concerning the promotional price, Apple customer service stated that products purchased within 14 days prior to the promotion can be returned and repurchased, effectively allowing some price adjustment.

Despite this promotional strategy, Apple faces challenges in maintaining its market shareIDC reports indicate that Apple fell out of the top five smartphone suppliers in China during the second quarter of 2024. Although there was a recovery in the third quarter, with a market share rebound to 15.6% and a second-place ranking, iPhone shipments in China still reflected a year-on-year decline of 0.3% in the third quarter.

// Nvidia's Strong Support for AI Startups

In 2024, Nvidia's investments have included those in Elon Musk's xAI, along with significant backing for renowned AI model providers such as OpenAI, Cohere, Mistral, and Perplexity

Additionally, Nvidia's Inception startup incubator has fostered the early development of thousands of startups.

Recently, Nvidia completed its acquisition of Israeli company Run:aiOn December 20, 2024, the European Union announced the unconditional approval of Nvidia's proposal to acquire Run:ai, determining that the transaction would not pose competitive issues within the European Economic AreaRun:ai specializes in software that optimizes GPU utilization, enhancing its ability to support AI workloads.

Nvidia's investments span a broad spectrum, encompassing applications across various AI domains, including medical technology, search engines, gaming, drones, chips, traffic management, logistics, data storage and generation, natural language processing, and humanoid roboticsIts portfolio includes startups valued in the billions, such as CoreWeave and Applied Digital.

However, this prolific trading activity has raised concerns regarding Nvidia's influence within the AI sector, particularly in light of ongoing antitrust scrutiny in the United States and EuropeFormer FTC Commissioner Bill Kovacic remarked that competition regulators are closely monitoring this trend of "dominant firms making large investments."

Nonetheless, Nvidia maintains that it is committed to nurturing its ecosystem, supporting exceptional companies, and enhancing its platform. "We compete and win based on our strengths, unrelated to any specific investments," Nvidia asserted.

// X and Google Have Yet to Apply for Malaysia's Social Media Operation License

According to Malaysia's internet regulatory body, as of the recent enforcement of new laws on Wednesday, both X, the social platform owned by Elon Musk, and Google, operator of YouTube, have not applied for a social media operation license.

Malaysia's Ministry of Communications and Multimedia stated that X asserted its user count in Malaysia does not meet the required threshold of 8 million to obtain a license

Efforts are underway to verify this platform's claims.

Simultaneously, Google is in discussions with the Malaysian Communications and Multimedia Commission (MCMC) to resolve concerns regarding its video-sharing capabilities and licensing classificationThe negotiations cover the posed concerns, with assurances that YouTube and its affiliated platforms will understand their responsibilities.

The MCMC further revealed that WeChat and Byte's TikTok have signed the new regulations ahead of other tech giants, while Telegram is nearing the end of its processes.

In July of last year, the MCMC announced that any social media platform in Malaysia with over 8 million users must apply for an operational license by January 1, 2025. This initiative aims to regulate the operations of social media platforms further, safeguarding user rights and cyberspace securityIt forms part of efforts by Malaysian authorities to hold large tech companies accountable for illegal contentThe MCMC indicated that platforms failing to comply with licensing requirements might face investigations or supervision.

// Eli Lilly Officially Launches Terzepatide in China

On January 2, Eli Lilly disclosed that the glucose-dependent insulinotropic peptide (GIP)/glucagon-like peptide-1 (GLP-1) receptor agonist, Terzepatide (trade name: Mufengda), has officially launched in China, covering two indications: type 2 diabetes and weight management

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