Data is bearish, interest rate cut expectations are canceled, and Trump's 'new imperialism' remarks have caused market panic, leading to a significant drop.
Last night, U.S. employment data was better than expected, and inflation in the service sector accelerated. In November, U.S. JOLTS job openings unexpectedly increased by 259,000 to 8.098 million. The ISM non-manufacturing PMI rose from 52.1 in November to 54.1, and the price index rose from 58.2 in November to 64.4, hitting an 11-month high, suggesting that inflationary pressures still exist. These two data points lowered market expectations for an interest rate cut, with the market expecting a more than 95% probability that the Federal Reserve will not cut rates in January, causing Bitcoin to drop significantly.
Next, Trump announced several shocking plans during a one-hour press conference last night, which American media referred to as new imperialism. He stated that he does not commit to avoiding the use of military force to seize Greenland and the Panama Canal. If Denmark does not give Greenland, he will impose 'very high' tariffs on Denmark, using economic means to absorb Canada as part of the United States. A series of outrageous remarks caused market panic, leading to a significant drop. Senior political commentator Jonathan Chait analyzed that 'new Trump imperialism' has a strong 'performative' nature, aiming more to pressure allies through this kind of 'bluffing' approach and to cater to the ideas of a large number of ordinary voters.
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