Round up of today’s market news

North American News

US Stock Indices Extend Gains for Fourth Consecutive Day, NASDAQ Leads

Market Summary:
Broader US stock indices continued their upward trajectory for the fourth consecutive day, with significant gains driven primarily by the NASDAQ index. Following sharp declines last week, both the NASDAQ and S&P indices have posted substantial recoveries this week.

Key Indices Performance:

• NASDAQ Index: Up 174.15 points or 1.00% at 17,569.68. The index has surged by 5.27% this week, recovering from a -5.77% drop last week.
• S&P 500 Index: Increased by 41.63 points or 0.75% at 5,595.76, rebounding by 3.46% this week after a -4.25% decline last week.
• Dow Industrial Average: Rose by 235.06 points or 0.58% to 41,096.77.
• Russell 2000: Gained 25.58 points or 1.22% at 2,129.42.

Notable Movers:

• Nvidia: Up by 1.91%.
• Dell: Rose by 3.08%.
• Meta Platforms: Increased by 2.69%.
• Amazon: Gained 1.34%.
• Alphabet: Rose by 2.34%.
• Microsoft: Increased by 0.94%.

Summary:
The broader US stock indices have shown resilience with a strong performance this week, particularly led by the NASDAQ. This rebound comes after notable declines last week, reflecting renewed investor confidence and a positive shift in market sentiment.

US Treasury auctions off $58 billion of 30 year bonds at a high yield of 4.015%

• WI level at the time of the auction 4.001%

The US treasury auctioned off $58 billion of the 30 year bonds.

High yield: 4.015%

• Previous 4.314%
• six-month average 4.460%

WI level at the time of the auction: 4.001%

Tail: 1.4 bps

• Previous: 3.1 basis points
• 6-month average: 0.3 basis points

Bid to Cover: 2.38X

• Previous: 2.31X
• 6-month average: 2.39X

Dealers: 15.7%

• Previous: 19.2%
• 6-month average: 15.9%

Directs: 15.7%

• Previous: 15.5%
• 6-month average: 18.6%

Indirects: 68.68%

• Previous: 65.3%
• 6-month average: 65.5%

US PPI final demand MoM for August YoY 1.7% vs 1.8% estimate. MoM 0.2% vs 0.1% est.

• The PPI details for August 2024

• Prior month 2.2% YoY. Revised to 2.1%
• PPI final demand YoY 1.7% vs 1.8% estimate
• PPI final demand MoM 0.2% vs 0.1% estimate. Prior 0.1% revised to 0.0%
• PPI Ex food and energy YoY 2.4% vs 2.5% estimate. Prior 2.4% revised to 2.3%
• PPI Ex food and energy MoM 0.3% vs 0.2% estimate. Prior 0.00% revised to -0.2%
• PPI food and energy and trade YoY 3.3% vs 3.3% prior (revised to 3.2%). MoM 0.3% vs 0.3% prior.

Final Demand Services:

• Prices rose 0.4% in August after a 0.3% decline in July
• 60% of the increase is due to a 0.3% rise in final demand services less trade, transportation, and warehousing
• Margins for final demand trade services increased 0.6%
• Final demand transportation and warehousing services decreased 0.1%

Product Detail:

• Guestroom rental prices rose 4.8%, a major factor in the August advance
• Other price increases:
  • Machinery and vehicle wholesaling
  • Automotive fuels and lubricants retailing
  • Residential real estate loans (partial)
  • Professional and commercial equipment wholesaling
  • Furniture retailing
• Price decreases:
  • Airline passenger services (0.8%)
  • Food and alcohol retailing
  • Membership dues, admissions, and recreational facility use fees (partial)

Final Demand Goods:

• Prices were unchanged in August after a 0.6% rise in July
• Breakdown by category:
  • Final demand goods less foods and energy: +0.2%
  • Final demand foods: +0.1%
  • Final demand energy: -0.9%

Product Detail:

• Price increases:
  • Non-electronic cigarettes: +2.3%
• Chicken eggs
• Gasoline
• Diesel fuel
• Drugs and pharmaceuticals
• Price decreased
  • Jet fuel: -10.5%

Other categories that decreased:

• Meats
• Electric power
• Hay, hayseeds, and oilseeds
• Nonferrous scrap

US weekly initial jobless claims 230K vs 230K expected

• The latest data released by the Department of Labor – 12 September 2024

• Prior 227K; revised to 228K
• 4-week moving average 231K
• Prior 230K
• Continuing claims 1.850M vs 1.850M expected
• Prior 1.838M; revised to 1.845M

Looking at the details, the largest increases in initial claims for the week ending August 31 were in Massachusetts (+2,230), Wisconsin (+820), Ohio (+806), Pennsylvania (+724), and Washington (+399). Meanwhile, the largest decreases were in Texas (-1,396), New York (-1,185), North Dakota (-919), California (-833), and Indiana (-796).

US August budget deficit -$380 billion versus estimate -$317.3 billion deficit

• Budget deficit data for the US released early

• US August 2024 budget deficit $-380 billion versus $-317.3 billion estimate
• August 2023 surplus was $89 billion
• Fiscal 2024 year-to-date deficit $1.897 trillion versus comparable fiscal 2023 of $1.525 billion deficit.
• US August budget outlays $687 billion versus $194 billion in August 2023. Big increase in outlays.
• Receipt came in at $307 billion versus $283 billion in August 2023. Modest increases.
• Interest costs on public that top $1 trillion for the first time for 2024 fiscal year to date.

US household net worth rose to record $163.8 trillion in Q2 2024

• Real estate values rose by $1.8 trillion

Underscoring some analysts view that the US economy will not go in to a prolonged recession and may continue to have the soft landing. The Federal Reserve is reporting that US household net worth rose to a record $163.8 trillion in Q2 2024.

• Stock market values rose by $0.7 trillion in Q2
• Real estate values rose by $1.8 trillion in Q2

On the debt side:

• The total nonfinancial debt rose by 4.7% annualized rate in Q2.
• Household debt rose by 3.2% annualized rate in Q2
• Nonfinancial business that rose by 3.8% annualized rate Q2
• Federal government that rose by 6.3% annualized rate in Q2
• State and local government that rose by 6.0% annualized rate in Q2

US housing costs rose last year but rent burden was unchanged – Census

• The latest findings shared by the Census Bureau on the rent and housing situation

The data shows that real median rental costs increased by 3.8% last year while real median home values rose by 1.8%, via data released as part of the American Community Survey. Meanwhile, the Census Bureau data itself shows that renter households spent 31.0% of their income on housing costs at the median last year. And that is unchanged from 2022.

Citi moves underweight equities

• A note from Citi cited in a CNBC report

Citi cited concerns over economic growth:

• Moving underweight equities as growth dims further
• Economic growth indicators continue to decline
• Hard-landing fears have set-off rising cross-asset volatility
• Inflation moves back to long-term targets
• Our model moves slightly short equities from max-long and overweight commodities (ex energy)

Canada Building permits for July 22.1% vs 7.1% estimate

• Canada Building permits for the month of July

• Prior month -13.9% revised to -13.0%
• Building permits 22.1% vs +7.1% estimate

Commodities

Gold Reaches Record High as Fed Rate Cut Bets Soar

Market Overview:
Gold surged to an all-time high of $2,552 on Thursday, driven by increasing expectations of a Federal Reserve interest rate cut. The yellow metal gained 1.67% from its daily low of $2,511, bolstered by recent US economic data that supports a likely rate reduction.

Key Developments:

• Gold’s Record High:
  Gold prices soared above $2,550 after data indicated that the Federal Reserve is likely to lower interest rates at its upcoming meeting. The precious metal’s appeal increases in a low-rate environment, where it becomes more attractive compared to interest-bearing assets.
• US Economic Data:
  • Jobless Claims: Initial Jobless Claims for the week ending September 7 rose to 230K, slightly above the previous week’s 228K.
  • Producer Price Index (PPI): August’s PPI rose by 1.7% year-over-year, just below the 1.8% forecast. Core PPI increased from 2.3% to 2.4%, missing expectations of 2.5%. Monthly increases were observed with headline PPI rising by 0.2% and core PPI by 0.3%, both surpassing forecasts.
• Market Reactions:
  The US Dollar Index (DXY) fell by 0.29% to a daily low of 101.44 following the data, while US Treasury yields saw a rise, with the 10-year T-note reaching 3.689%. The shift in sentiment is partly due to expectations of a 25 basis point Fed rate cut, now priced at an 85% probability by the CME FedWatch Tool.
• European Central Bank (ECB) Influence:
  The ECB’s recent rate cut by a quarter percentage point further impacted the US Dollar’s value, as it supported the EUR/USD rally.

Outlook:
Investors will closely watch the University of Michigan’s Consumer Sentiment survey due Friday for additional insights into economic conditions and potential impacts on future Fed decisions.

Summary:
Gold’s record high reflects strong investor confidence in a forthcoming Federal Reserve rate cut, with recent US job and inflation data reinforcing this view. As expectations shift towards a lower interest rate environment, gold remains a favored asset in the current economic climate.

Silver Surges 2.0% Following Mixed US PPI Data

Market Overview:
Silver prices spiked by over 2.0% on Thursday, trading in the $29.30 range after the release of mixed Producer Price Index (PPI) data. The precious metal’s rally is attributed to a weaker US Dollar and expectations of increased inflationary pressures.

Key Developments:

• Silver’s Performance:
  Silver surged above $29.30, breaking out of a recent consolidation zone. The metal’s strong performance is reflective of investor sentiment reacting to the latest inflation data.
• Producer Price Index (PPI):
  The PPI for August revealed mixed results:
  • Monthly PPI: Increased by more than expected, suggesting higher costs at the factory gate.
  • Annual PPI: Rose less than anticipated, coming in below forecasts with significant downward revisions to July’s figures.
• US Jobless Claims:
  The number of people claiming benefits ticked up, which contributed to a broader market reaction favoring safe-haven assets like silver.
• Market Reactions:
  Following the data release, the US Dollar (USD) experienced a decline. As silver and other precious metals are typically negatively correlated with the USD, their prices benefited from the Dollar’s weakness.

Outlook:
The mixed PPI data and the uptick in jobless claims underscore potential inflationary pressures, which could continue to support precious metals in the near term. Silver’s recent rally may signal ongoing investor interest amid broader economic uncertainties.

Summary:
Silver’s 2.0% gain highlights market reactions to mixed inflation data and a weaker US Dollar. As PPI data suggest rising costs at the factory level, silver remains a strong choice for investors looking to hedge against inflation and currency fluctuations.

IEA warns that China slowdown will continue to weigh on global oil demand growth

• The agency maintains a bleak assessment of the oil market

The IEA kept their forecasts for global oil demand broadly unchanged, seen at 900k bpd this year and 950k bpd for next year. That said, these numbers are way more pessimistic than other forecasters. 

In keeping with their forecast, IEA warns that oil demand growth is “slowing sharply” and it owes much to China’s economic growth slowing down. In their report, they highlighted how Chinese demand contracted for a fourth straight month and that Beijing’s oil imports have fallen to the lowest in almost two years.

EU News

Higher close for European major indices

• Spain’s Ibex up 1.08%

The major European indices are closing higher in the day led by Spain’s Ibex which is higher by 1.08% today:

• German DAX, +0.97%
• France’s CAC +0.52%
• UK’s FTSE 100 +0.57%
• Spain’s Ibex +1.08%
• Italy’s FTSE MIB +0.84%

ECB cuts deposit rate by 25 bps in September monetary policy decision, as expected

• ECB announces their latest monetary policy decision – 12 September 2024

• Deposit facility rate 3.50% vs 3.50% expected
• Prior 3.75%
• Main refinancing rate 3.65% vs 3.65% expected
• Prior 4.25%
• Marginal lending facility 3.90%
• Prior 4.50%
• It is now appropriate to take another step in moderating the degree of monetary policy restriction
• Recent inflation data have come in broadly as expected
• Inflation is expected to rise again in the latter part of this year due to base effects
• Core inflation projections for 2024 and 2025 have been revised up slightly
• Core inflation seen at 2.9% in 2024, 2.3% in 2025, and 2.0% in 2026
• Economic projections revised slightly downwards
• Economy to grow by 0.8% in 2024, 1.3% in 2025, and 1.5% in 2026
• To continue to follow a data-dependent and meeting-by-meeting approach

Spain August final CPI +2.3% vs +2.2% y/y prelim

• Latest data released by INE – 12 September 2024

• Prior +2.8%
• HICP +2.4% vs +2.4% y/y prelim
• Prior +2.9%

Housing market in UK shows signs of recovery – RICS house price best since January 2020

• Royal Institution of Chartered Surveyors (RICs) UK house price balance

Data from the Royal Institution of Chartered Surveyors (RICs) in the UK, its house price balance (this measures the difference between surveyors seeing falls and rises in house prices) for August 2024.

Came in at +1, the strongest since January 2020

• expected -14
• prior -18

Highlights of the ECB press conference for September 2024

• ECBs Lagarde leads the ECB press conference.

• Recovery is facing headwinds
• Expect the recovery to strengthen.
• Fading monetary policy restrictions should support economy.
• Labor market remains resilient.
• Surveys point to further moderation and demand for labor
• Goods inflation and services inflations move in opposite directions.
• Negotiated wage growth will remain high and volatile for the rest of 2024. Overall labor cost growth moderating.
• Unit labor costs to continue declining owing to lower wage growth in recovery and increased productivity
• Risks to growth remain and are skewed to the downside
• Growth could be higher if inflation comes down quicker than expectations., or the world economy grows stronger than expectations.
• Wages/profits/trade tensions potential for upside risks for inflation.
• Extreme weather events and global warming could drive up food prices.

Q&A begins:

• The decision to cut the deposit rate by 25 basis points was unanimous.
• Data comforts us that we are heading to targets
• We expect inflation to the client toward are to present target.
• Given our inflation expectations it was prudent to cut our deposit facility rate by 25 basis points.
• We expect inflation to return to 2% by the end of 2025. Has reinforce our confidence in solidity, robustness of projections.
• Declining path for rates pretty obvious.
• September will likely deliver a low inflation reading due to energy.
• However inflation to rise again in Q4.
• We are not just looking at one indicator but a whole range of data.
• ECB path on rates is not predetermined. No commitment of any kind about October meeting (which is six weeks away).
• Need to be attentive to risk of below target inflation.
• Services inflation is clearly the component of prices that require monitoring. Holiday packages, insurances are leading the rise in the services inflation.
• Expects services inflation to decline in 2025 due to wage moderation growth.

UK pay awards drop to lowest level in two years

• UK employers granted pay settlements of 4.0% in the three months to July, the lowest since August 2022,

UK Incomes Data Research survey of wage growth:

• median pay settlement awarded by major employers dropped to 4.0% in the three months to July, the lowest since August 2022 and down from 4.8% in the three months to June

Subdued wage growth, if a 4& quarterly gain can be so described, keeps the Bank of England on track for further rate cuts.

Nomura forecasts a 25bp cut by the European Central Bank today, Thursday, September 12

• That 25bp rate cut is widely expected

The European Central Bank meet on Thursday, September 12. A rate cut is widely expected.

Nomura anticipates a 25bp cut by the ECB, which is already priced into the market. The key focus will be on the ECB’s statement, press conference, and updated forecasts to assess the potential for a more dovish stance and faster rate cuts.

Key Points:

• Market Expectations:
  • A 25bp rate cut is fully expected by both the market and economists.
  • The ECB’s statement and press conference will be crucial in gauging the likelihood of a faster pace of rate cuts.
• Impact on EUR:
  • Broad EUR underperformance is anticipated due to softening growth and risks of a faster pace of rate cuts.
  • September’s meeting might not significantly deviate from recent messaging, with any downward revisions in forecasts likely insufficient to alter rate cut expectations substantially.
• President Lagarde’s Comments:
  • Lagarde is expected to maintain a balance in her comments, focusing on data dependence without committing to a specific future path.
  • An October rate cut is priced at around 40%, but significant movement in this pricing would require explicit commentary on negative growth momentum and weaker wage growth.
• Trading Strategy:
  • Short EUR/JPY: Given the potential for broad EUR underperformance and the current environment, Nomura suggests considering a short position in EUR/JPY.

Conclusion:

Nomura forecasts a 25bp cut by the ECB, with the market focusing on potential dovish signals from the statement, press conference, and forecasts. A significant downward shift in EUR is not expected unless more explicit dovish commentary is provided. Trading strategies may favor shorting EUR/JPY given the anticipated broad EUR underperformance and potential global recession fears.

Asia-Pacific-World News

China reportedly to cut interest rates on $5 trillion mortgages as soon as this month

• Bloomberg reports, citing people familiar with the matter

This is mainly to further reduce borrowing costs and to try and bolster consumption activity. Domestic demand conditions in China have suffered greatly ever since the Covid pandemic and there hasn’t been much of a revival in that area despite the world returning back to normal.

The report says that some banks are already making final preparations for the adjustments on mortgage rates. And the change could go into effect as early as some this month. According to one of the sources, some homeowners may enjoy up to 50 bps of immediate rate reduction.

PBOC sets USD/ CNY mid-point today at 7.1214 (vs. estimate at 7.1219)

• PBOC CNY reference rate setting for the trading session ahead.

In open market operations (OMOs):

• PBOC injects 161bn via 7-day RR, sets rate at 1.7%
• 63bn mature today
• thus a net injection of 98bn yuan

Chinese car industry is still struggling, car sales -5% y/y in August (prior -5.2%)

• EVs still selling well

Follow-up numbers from the China Association of Automobile Manufacturers (CAA) were released on Wednesday. Car sales in August dropped by 5.0% y/y

• July was -5.2%
• June was -2.7%

Sales of ICE vehicles plunged, sales of new energy vehicles (NEVs), including battery EVs and plug-in hybrids, surged.

US firms optimism in China has fallen to its lowest level ever

• A survey published by the American Chamber of Commerce in Shanghai.

Political tensions, China’s slowing economic growth, poor domestic demand, deflation, and fierce domestic competition are the backdrop to the results of this survey,

• Only 47% of US firms optimistic on 5-year outlook
• US firms profitable in China down to 66% in 2023
• Geopolitical tension rated as biggest challenge

Reuters has more.

Australia inflation expectations are slowly, slowly chipping lower, still way above target

• Melbourne Institute Survey of Consumer Inflationary Expectations

The Melbourne Institute Survey of Consumer Inflationary Expectations for Australia shows a drop to 4.4% in September

• prior 4.5%

The Reserve Bank of Australia target band is 2 to 3% for inflation.

Former Reserve Bank of Australia Governor Fraser says the RBA should cut its cash rate

• Fraser says the current RBA board is excessively focused on inflation and risks the jobs market

A former Reserve Bank of Australia Governor, Bernie Fraser, says the current RBA board is excessively focused on inflation:

• Fraser says the Board should cut the cash rate
• Fraser cited looming “recessionary risks”, that would be devastating for the jobs market

New Zealand data – Food Price Index (August) +0.2% m/m (prior +0.4%)

• While core inflation is usually the most focus, the FPI in New Zealand can give the kiwi $ a bit of a wiggle from time to time.

New Zealand Electronic Card Retail Sales (MoM) (Aug)

• Actual: 0.2%
• Previous: -0.1%

New Zealand Electronic Card Retail Sales (YoY) (Aug)

• Actual: -2.9%
• Previous: -4.9%

BOJ’s Tamura says expects a gradual path for interest rate hikes

• Bank of Japan board member Naoki Tamura:

• Japan’s neutral rate is likely to be around 1% at the minimum
• the path towards ending easy policy is still very long
• Will carefully examine the pros and cons of exiting easy policy

• Must push up short-term rates at least to around 1% by latter half of our long-term forecast period through fiscal 2026, to stably achieve 2% inflation target
• must raise short-term rates in several stages while scrutinising how economy, inflation respond to such steps
• will keep close eye out on financial market moves and their impact on economy, prices
  must raise rates at appropriate timing and in several stages
• pace at which markets expect BOJ to hike rates is very slow, hiking at such pace could further heighten upward inflation risk

• Expect consumption to rise moderately thanks in part to reversal of one-sided, sharp yen falls
• Likelihood of Japan sustainably achieving BOJ’s price target heightening further
• Personally see upward inflation risk heightening

BOJ’s Tamura says pace of rate hikes is likely to be slow

• Further remarks on the day by BOJ hawk, Naoki Tamura

• No preset idea on the pace of further rate hikes
• But unlike US and Europe, rate hikes are likely to be slow for Japan
• Exact timing on when rates can reach 1% will depend on economic, price conditions at the time
• Data so far shows economy moving in line with forecast from July meeting
• When markets are quite fragile, need to set a period to ensure it markets cool down
• Big and rapid market volatility is undesirable
• Upside risk to inflation has subsided somewhat when compared to USD/JPY being at 160
• A weak yen is being reversed somewhat
• But rise in import costs seen earlier this year will affect inflation with a lag

Japan Business Survey Index for Q3 2024 4.5% (prior -1.0%)

• Solid improvement

Japan Business Survey Index for Q3 2024: 4.5%

• prior -1.0%

Japan PPI (August) -0.2% m/m (expected +0.0%) and +2.5% y/y (expected +2.8%)

• The PPI is also referred to as the Corporate Goods Price Index, its published by the Bank of Japan.

• -0.2% m/m for a miss

• expected 0.0%, prior 0.3%
• 2.5% y/y, also a miss
• expected 2.8%, prior 3.0%

Falling m/m wholesale inflation and lower than previous y/y. The rising yen may well have played a role in these results – check out the graph on the right, the import index.

At the margin these data are a slight negative for the yen.

Reuters Japan Corporate Survey – firms wary of 50bp interest rate rise

• The latest poll of business in Japan from Reuters

Reuters poll:

• Three out of 10 firms see rate hike to 0.5% affecting fundraising plans
• Japan firms want next PM to tackle rising prices, fiscal reform (The ruling Liberal Democratic Party is set to hold an election on September 27 to pick its next leader who will become the prime minister)

Japan Foreign Investments in Japanese Stocks

• Actual: -902.3B
• Previous: -824.4B

Japan Foreign Bonds Buying

• Actual: -222.6B
• Previous: 1,640.5B

Cryptocurrency News

Coinbase Launches cbBTC on Base and Ethereum, Enhancing Bitcoin Exposure in DeFi

Market Overview:
Coinbase has unveiled its new wrapped Bitcoin token, cbBTC, on both its Layer-2 network, Base, and the Ethereum blockchain. This launch aims to integrate Bitcoin liquidity into decentralized finance (DeFi) ecosystems.

Key Developments:

• Launch of cbBTC:
  Coinbase introduced cbBTC, a wrapped Bitcoin token pegged 1:1 with Bitcoin. The token is designed to provide DeFi users with Bitcoin exposure, allowing them to utilize BTC for various financial activities such as yield farming, lending, and liquidity provision. cbBTC will be backed by Bitcoin reserves to ensure its 1:1 price peg.
• Automatic Conversion:
  Users transferring Bitcoin from Coinbase to Base or Ethereum wallets will benefit from automatic conversion to cbBTC, streamlining the process and enhancing user experience.
• DeFi Integration:
  Several prominent DeFi protocols on Ethereum, including Curve Finance, Aave, Sky Protocol, Aerodrome, Compound, Maple, Moonwell, and Morpho Labs, have already integrated cbBTC into their platforms. This integration aims to expand Bitcoin’s utility within the DeFi space.
• Availability and Regional Restrictions:
  cbBTC is available to users in the UK, Australia, Singapore, and the US, excluding New York.

Background and Context:

• Controversy with wBTC:
  The launch of cbBTC comes in the wake of criticism directed at wBTC issuer BitGo. Concerns were raised about BitGo’s attempt to transfer token management to Bit Global, a move viewed with skepticism due to the controversial reputation of Bit Global’s co-founder, Justin Sun. This controversy led to discussions within the MakerDAO community about reducing debt limits for wBTC.

Summary:
Coinbase’s introduction of cbBTC represents a significant step in integrating Bitcoin into DeFi platforms, offering users a seamless way to leverage Bitcoin’s liquidity and functionality. The automatic conversion feature and DeFi integration highlight Coinbase’s commitment to expanding Bitcoin’s role in decentralized finance.

XRP Surges 4% as Grayscale Launches XRP Trust

Market Overview:
XRP experienced a notable rally on Thursday following the announcement of Grayscale Investments’ new XRP Trust. The announcement generated significant excitement among investors, leading to a surge in the altcoin’s price.

Key Developments:

• Grayscale XRP Trust:
  Grayscale, a major player in crypto asset management, revealed the creation of a single-asset investment fund focused on XRP. This new fund aims to attract institutional investors and provide exposure to XRP, which is known for its role in facilitating cross-border payments through the XRP Ledger.
• Price Movement:
  XRP saw a dramatic price increase, rallying as much as 10% earlier in the session to reach $0.5884. However, the price has since corrected and is currently trading at $0.5602, reflecting a 4% gain on the day.

Daily Market Movers:

• XRP Performance:
  XRP surged to $0.5884, marking a 10% gain from the September 11 close of $0.5348, before stabilizing at $0.5602.
• Grayscale’s Role:
  With $26 billion in assets under management as of January 10, 2024, Grayscale’s announcement is expected to significantly boost institutional interest and capital inflows into XRP. Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, emphasized the real-world use case of XRP in transforming traditional financial infrastructure.

Summary:
Grayscale’s launch of the XRP Trust has energized XRP traders, driving the altcoin to notable gains. While XRP initially spiked by 10%, it has settled with a 4% increase, reflecting strong market interest and the potential impact of institutional investment on the altcoin’s future.

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