Morning Brew March 3 2025

Good morning,

President Donald Trump announced the creation of a U.S. “Crypto Strategic Reserve” yesterday, aiming to position the U.S. as the “Crypto Capital of the World.” The reserve will include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). This initiative seeks to enhance cryptocurrency legitimacy, encourage institutional adoption, and influence global crypto regulations.

The announcement caused a significant rally in cryptocurrency markets. Bitcoin surged over 10% to $94,069, Ethereum rose 12%, and smaller tokens like Cardano saw gains exceeding 60%. Trump’s executive order directed the Presidential Working Group to establish this reserve, marking a shift from his earlier skepticism about cryptocurrencies.

Further details, including operational mechanisms and funding sources for the reserve, are expected at the White House Crypto Summit on March 7.

The clash between Donald Trump, JD Vance could not upset equity sentiment on Friday, comments were extremely controversial about which side was in the wrong. Ukraine will be one of the topics to dominate this week. As a gauge for  the sentiment, Rheinmetall is seen to open at around 10% higher on the expectation Europe will have to seriously up the ante. Polish PM Tusk stated it made no sense 500 million Europeans ask 300 million Americans to protect them from 140 Russians.

The first month of the Trump administration in power went less stellar than many had hoped. The S&P lost 1.4%, the Nasdaq nearly 4% and the Dow 1.%. Tesla is trading 28% lower, Amazon lost 10%, Microsoft -4.4%, Meta -3% while Nvidia could gain 4% and Apple 2.5%, Meta is the only of the Magnificent 7 up this year. Intel rose 22%- Swiss and German Equities gained 4%  Rheinmetall the star at +33%

Gold gained 1.5% and Silver lost 1.4%, Bitcoin gave up 18%. The US Index fell a little less than 1%, 10 Year Yields fell 40 basis points. Gold had the first negative week this year in what Ole sees an overdue bump in the road to 3000.

Risk sentiment seems strong this morning, Indexes, Gold and Silver are friendly

• France and the UK are suggesting a 1 month ceasefire in Ukraine.
• Will Elon Musk react to Tesla`s share performance in any with sales declining and significant protests, there are mounting coplaints the captain is not even at the helm while the ship is in dangerous sees.
• US Politics - Will the tariffs take effect on Tuesday?
• Earnings: There none of the Top earnings releases but several US retailers will report, including Target, Best Buy, Abercrombie & Fitch, Footlocker, Marvell, Victoria`s Secret, Costco, JD.Com, Kroger and Macy`s
• ECB Rate Decision Thursday
• US Labor data on Friday
• The Crypto Summit on March 7 – expect crypto to be volatile pending details.
  
  

Monday, March 3, 2025

• Global PMI
• U.S.: Construction Spending (Jan), ISM Manufacturing Index (Feb), Vehicle Sales (Feb).
• Japan: Unemployment Rate (Jan).
• Eurozone: CPI Preliminary (Feb).
• Earnings: Sphere, Gitlab,

   

  Tuesday, March 4, 2025

• Australia Current Account
• Eurozone: Unemployment Rate (Jan).
• Earnings: Target, Best Buy, On, Crowdstrike,

   

  Wednesday, March 5, 2025

• Japan & China PMI

• U.S.: ADP Employment Report (Feb), Factory Orders (Jan), ISM Non-Manufacturing Composite (Feb)
  • Earnings: Abercrombie & Fitch, Footlocker, Marvell, Victoria`s Secret,

Thursday, March 6, 2025

• Eurozone: Retail Sales (Jan), ECB Meeting.
• U.S.: International Trade & Initial Jobless claims

          •       Canada: Productivity (Q4).

• JD.Com, Kroger, Macy`s, Broadcom, Costco,

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Friday, March 7, 2025

        •       U.S.: Employment Report (Feb), Consumer Credit (Jan).

        •       Canada: Employment Report (Feb), Capacity Utilization (Q4).

        •       Eurozone: GDP Final (Q4).