The US dollar slid in European trade on Monday to a six-week low on track for the third loss in a row as concerns about aggressive US sanctions on Colombia faded. 

The currency is also pressured by the steep drop in US 10-year treasury yields before the Federal Reserve’s first meeting in 2025, expected to hold rates steady.

The Index

The dollar index fell 0.4% to 107.06, the lowest since December 18, with a session-high at 107.81.

On Friday, the index lost 0.6% following grim US data.

The index lost 1.8% last week, marking the heftiest weekly loss since November 2023 on renewed hopes for multiple US rate cuts this year. 

Tariffs

Colombia agreed to receive US military transfers of illegal immigrants after US President Donald Trump threatened sanctions if they refused.

US Yields

US 10-year treasury yields fell 2.6% on Monday, plumbing six-week lows at 4.498% and pressuring the greenback.

It comes after remarks by Trump on supporting interest rate cuts, with less focus on tariffs in his latest speeches. 

The Fed

The Federal Reserve is convening this week to decide on policies, expected widely to maintain rates unchanged. 

At the World Economic Forum in Davos, US President Donald Trump announced plans to pressure the Federal Reserve to cut rates, and called for other countries worldwide to take similar steps.

US Rates

Following Trump’s speech, the odds of a 0.25% Fed rate cut still stood at 1% in January, but rose to 36% in March.

The German IFO Business Climate index rose to 85.1 in January from 84.7 in the previous reading, beating estimates of 84.9.

Silver prices fell in European trade on Monday away from a six-week high on profit-taking amid concerns about Chinese demand after grim data. 

The data showed a sudden contraction in manufacturing and services sectors in January, in yet another sign of weakness in the Chinese economy.

Prices

Silver prices fell 1.6% today to $30.11 an ounce, with a session-high at $30.62.

On Friday, silver rose 0.5%, the first profit in three days, with a six-week high at $31.03.

The white metal rose 0.8% last week, marking the third weekly profit in a month as both the dollar and US yields dropped.

Chinese Demand

Earlier Beijing data showed the manufacturing PMI dipped to 49.1 in January from 50.1 in December, missing estimates of no change.

The services PMI fell to 50.2 in January from 52.1 in December, missing estimates of 52.2.

It shows the urgent need of the Chinese economy to receive more monetary and fiscal stimuli from authorities. 

The Fed

The Federal Reserve is convening this week to decide on policies, expected widely to maintain rates unchanged. 

 At the World Economic Forum in Davos, US President Donald Trump announced plans to pressure the Federal Reserve to cut rates, and called for other countries worldwide to take similar steps.

US Rates

Following Trump’s speech, the odds of a 0.25% Fed rate cut still stood at 1% in January, but rose to 36% in March.

1. Middleby price target raised to $192 from $155 at Canaccord

Canaccord analyst Brian McNamara raised the firm’s price target on Middleby (MIDD) to $192 from $155, keeping a Buy rating on the shares. The move follows reports that Garden Investments has accumulated a 5% stake, planning to renew the company’s focus on core commercial foodservice. The new target reflects a sum-of-the-parts valuation approach.

2. Tian Lun Gas Announces Leadership Transition and Board Restructuring

Tian Lun Gas Holdings Limited (HK:1600) announced a major leadership change effective January 27, 2025. Chairman Zhang Yingcen resigned due to health reasons, replaced by new Chairman Xian Zhenyuan. Ms. Zhang Baixuan joins as an executive director, and board committees are also restructured to align with the company’s strategic goals.

3. Amerant Bancorp price target raised to $27 from $25 at Keefe Bruyette

Keefe Bruyette raised Amerant Bancorp’s (AMTB) price target to $27 from $25, maintaining a Market Perform rating. The firm cites strong Q4 results for the upgrade, reflecting continued improvement in Amerant’s financial metrics and performance outlook.

4. Tian Lun Gas Announces Board Composition and Committee Roles

Tian Lun Gas Holdings Limited (HK:1600) detailed its board composition and committee assignments, naming members across Audit, Nomination, Remuneration, and ESG committees. This update provides transparency into the company’s governance structure, potentially impacting stakeholder confidence in its leadership approach.

5. MOG Digitech Approves New Share Subscription Agreement

MOG Digitech Holdings Limited (HK:1942) held an Extraordinary General Meeting on January 27, 2025, approving a subscription agreement with Valiant Warrior Limited. The issuance of 212,121,212 new shares at HK$0.99 each could bolster the company’s capital base, supporting growth in the digital technology sector.

6. AEON Stores Expands Retail Operations with New Lease Agreement

AEON Stores (Hong Kong) Co., Limited (HK:0984) revealed a significant lease deal for its subsidiary AEON GD in Guangdong Province, China, for over ten years. Valued at RMB17.9 million, the agreement aims to expand AEON’s retail footprint in the region, further strengthening its operations in consumer goods.

7. Atlas Energy Solutions Acquires Moser Energy Systems

Atlas Energy Solutions (AESI) has agreed to acquire Moser Energy Systems in a $220 million transaction. The move diversifies Atlas’s offerings in distributed power solutions, with the deal expected to close by Q1 2025. Hilltop Holdings also announced plans to sell its interest in Moser, indicating further consolidation in the energy services sector.

8. Vivic Announces Leadership Change and Appointment

Vivic (VIVC) announced that Board member Tse-Ling Wang resigned on January 25, 2025, without disagreements regarding company policies. Concurrently, Kun-Teng Liao was appointed Chief Operating Officer, having previously served as director and secretary of Vivic. His agreement includes non-disclosure and non-compete clauses, and he will receive shares as part of his compensation.

9. JD.com Proposes Acquisition of Dada Nexus at 42% Premium

Dada Nexus (DADA) received a preliminary non-binding buyout offer from JD.com to acquire all outstanding shares not already owned by JD. The proposed $2.0 per ADS represents a 42% premium to recent trading. Dada’s board formed a special committee to evaluate the proposal, while no final decision has been made and no binding commitment is in place yet.

10. Renewi plc Reports Change in Major Shareholder Holdings

Renewi plc (GB:RWI) disclosed a change in significant holdings, as JPMorgan Chase & Co. disposed of voting rights, causing its stake to fall below a key threshold. This move could affect Renewi’s governance dynamics, highlighting the fluid nature of institutional shareholdings and market perception.

11. Zotefoams PLC Announces Change in Major Shareholder Voting Rights

Zotefoams (GB:ZTF) reported that Schroders Plc disposed of a portion of its voting rights in the company, dropping from 15.99% to 14.98%. This reflects adjustments in Schroders’ investment strategy and might influence shareholder dynamics and overall market sentiment regarding Zotefoams’ advanced cellular materials business.

12. B. Riley remains bullish on nuclear energy amid Nvidia concerns

B. Riley analyst Yuan Zhi reaffirmed a Buy rating on Mirion (MIR), highlighting nuclear energy’s growth potential despite recent questions about AI spending and Nvidia’s (NVDA) GPU demands. The analyst believes cost efficiencies and improved compute power could accelerate AI integration, which ultimately benefits players in the nuclear industry like Mirion.

13. DeepSeek V3 ‘bullish’ for Nvidia, would buy on weakness, says Cantor Fitzgerald

Cantor Fitzgerald views DeepSeek’s latest large language model as a positive development for Nvidia (NVDA) and overall compute demand. Despite market jitters over possible oversupply and peak GPU spending, Cantor sees advanced AI prompting greater investments in computing power. The firm maintains an Overweight rating and a $200 price target on Nvidia, suggesting any related pullback is a buying opportunity.

14. American cruise passenger volume to see slower growth in 2025, Reuters says

According to a Reuters report citing AAA forecasts, nearly 19M Americans will take cruises this year, but passenger growth is expected to cool to 4.5% in 2025, down from 7.7% last year. Industry players Carnival (CCL), Norwegian Cruise Line (NCLH), and Royal Caribbean (RCL) may see a moderation in post-pandemic demand booms.

15. Collective Mining commences drilling at San Antonio Project in Colombia

Collective Mining (CNL) began a 2,500-meter drill campaign at its San Antonio Project in Caldas, Colombia, testing three large gold-copper porphyry targets. The program is part of a fully funded 60,000-meter 2025 drill schedule. Five rigs are currently active, with two more planned to start in late January and February.

16. Ocugen announces IND in effect after FDA review

Ocugen (OCGN) stated the FDA has cleared its Investigational New Drug application for OCU500, an inhaled mucosal COVID-19 vaccine candidate. A Phase 1 clinical trial, sponsored by the NIAID, is set to begin in Q2, focusing on safety, tolerability, and immunogenicity via two delivery methods—lung inhalation and nasal spray.

17. Hilltop Holdings to sell its interest in Moser Energy Systems to Atlas Energy

Hilltop Holdings (HTH) announced that its subsidiary, Hilltop Opportunity Partners, will sell its approximately 30% stake in Moser Holdings to Atlas Energy (AESI) as part of a $220M deal. Moser Acquisition is expected to be fully acquired by Atlas, and the transaction includes cash and about 1.7 million shares of Atlas common stock.

18. Mizuho says buy data centers on DeepSeek fears

Mizuho believes DeepSeek’s AI breakthroughs could momentarily weigh on data center stocks due to speculation of reduced big AI spending. However, the firm advises buying the dip, especially in Digital Realty (DLR) and Equinix (EQIX), given robust pricing power and strong pre-leased development pipelines heading into fiscal 2025.

19. Kinross Gold double upgraded to Buy at BofA with many concerns addressed

BofA analyst Lawson Winder upgraded Kinross Gold (KGC) from Underperform to Buy, raising the price target to $12.75 from $9.25. The firm sees concerns around mine life and maintaining 2M gold-equivalent ounces annual production being resolved, lifting estimates for 2026 output and boosting EPS forecasts.

20. Cameco announces production has resumed at JV Inkai

Cameco (CCJ) received word that JV Inkai, its partnership with National Atomic Company Kazatomprom, has restarted uranium production. Both firms are evaluating the impact on 2025 production guidance. Cameco holds a 40% interest in Inkai, while Kazatomprom owns 60%.

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