The AI leader Nvidia closed at a new high of $138.07, driving the US stock market to another gain. Goldman Sachs believes that Chinese policymakers have "shifted to cyclical policy management and strengthened their focus on the economy," and has raised its outlook for China's GDP. Bitcoin surged from above $62K early yesterday and returned above $66K.
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ToggleGoldman Sachs Raises China's GDP Outlook
Goldman Sachs said in a research report on October 13 that Chinese policymakers have "shifted to cyclical policy management and strengthened their focus on the economy." Evaluating the "more forceful and coordinated" stimulus policies announced in two high-level press conferences last week, Goldman Sachs has raised its forecast for China's actual GDP growth in 2024 from 4.7% previously to 4.9%, and its forecast for China's actual GDP growth in 2025 from 4.3% to 4.7%.
However, Goldman Sachs also warned that its structural view on China's growth has not changed due to the persistent growth challenges, including demographic deterioration, a multi-year debt deleveraging trend, and global supply chain risks.
The Shanghai Composite Index rose 2.07% after volatile trading, while the Hang Seng Index in Hong Kong fell 0.83%.
Bitcoin Returns Above 66K
Bitcoin surged from above $62K early yesterday and returned above $66K. Within 24 hours, $540 million in short positions were liquidated, and the weighted average funding rate of Bitcoin's open interest (OI) also reached 0.012%, a high in months, indicating potential bullish sentiment in the short to medium term.
While a positive funding rate usually indicates a bullish market sentiment, the rapid changes in sentiment in the crypto market still require cautious interpretation.
After all, Bitcoin had broken above the resistance level around $65K at the end of September, but reversed and fell back to around $60K a few days later. Now it seems to be forming a small W-bottom and attempting to rise again. However, there are still significant obstacles above, and whether it can challenge the historical high of $73,798 set in March this year still requires more positive news to drive it.
The focus this week will be on the US retail sales data on Thursday, the interest rate decision meeting in the Eurozone, and China's Q3 GDP and September economic data to be released on Friday.
