Highlights for the morning: Fed expectations, a boom in predictive platforms and new AI investments in the US

Markets remain under the influence of expectations of the Fed rate cut and the possible appointment of Kevin Hassett as the new head of the regulator. This weakened the dollar and supported gold prices, with the precious metal again approaching $4165 per troy ounce. Foxconn is strengthening its presence in the U.S., having received approval to invest $569 million to expand its AI server production in Wisconsin. On these and other topics - in our review of key events for the morning of November 26.

Donald Trump's administration is considering National Economic Council Director Kevin Hassett as a top contender to be the next Federal Reserve chairman, Bloomberg sources report. Hassett is a longtime Trump ally and a proponent of more aggressive rate cuts, making him an attractive candidate for the White House, the agency noted. Hassett said in an interview with Fox News that he would agree to lead the Fed if offered the role. Markets reacted positively to the news: the yield on 10-year treasuries fell below 4% for the first time in a month.

White House press secretary Caroline Leavitt pointed out in a statement that "no one knows what President Trump will do before he does it" and advised to stay tuned, Bloomberg reports.

Meanwhile, Treasury Department head Scott Bessent is wrapping up interviews with the contenders - Hassett, Kevin Warsh, Christopher Waller, Michele Bowman and Rick Reeder remain on the short list, the agency specifies. According to Bessent, Trump could announce the winner in the next month, before Christmas. The US president himself, who has long criticized incumbent Fed chief Jerome Powell for cutting rates too slowly, hinted that he has already made a choice, but did not reveal the name.

Gold prices rose to around $4165 per ounce due to the weakening dollar and growing expectations that the Fed will cut rates as early as December, Bloomberg reported. Falling consumer confidence and slowing retail sales have strengthened forecasts of policy easing, and the possible appointment of Kevin Hassett - a proponent of lowering rates - as the new head of the Fed has strengthened these expectations. The probability of a 25bp December cut was estimated by swap traders at over 80%.

Gold continues to hold above the $4000 mark after correcting from a record high of $4380, remaining on track for its best annual performance since 1979. The rise is supported by active central bank buying and demand from investors moving away from currencies and government debt amid fears of asset value erosion. Silver also rose, while platinum and palladium declined slightly.

Robinhood and Susquehanna have agreed to purchase 90% of the regulated LedgerX exchange from Miami International Holdings, significantly strengthening their position in the rapidly growing prediction-markets market, Reuters reports. After the deal closes, the companies will create a joint futures and derivatives exchange and clearing center, with MIAX retaining a 10% stake. LedgerX was previously owned by bankrupt FTX and was bought out by MIAX in 2023 for $50 million.

Interest in prediction-markets in the U.S. has surged since the lifting of the court injunction on election betting, attracting major players to the market, from Intercontinental Exchange, which has invested up to $2 billion in Polymarket, to Kalshi, valued at $11 billion. New platforms and partnerships are emerging, including sports startup InPlay GlobalH. CME Group and CBOE are also planning to enter the event derivatives market.

Foxconn has received approval from Wisconsin authorities for an additional $569 million investment to expand its Racine County facility to meet growing demand for artificial intelligence servers and strengthen its U.S. supply chain, Reuters reports. The company notes that the need for data infrastructure continues to grow and Foxconn plans to scale production in the United States.

Wisconsin now accounts for nearly a quarter of Foxconn's U.S. workforce, and the new investment will double the company's presence in the state by 2030, creating 1,374 new jobs. Foxconn has already invested more than $2 billion in the region in recent years, including salaries, capital expenditures and taxes.

- The broad Japanese Topix index rose by 1.96%. Benchmark Nikkei 225 - by 1.9%.

- Hong Kong's Hang Seng Index rose 0.4 percent, while mainland China's CSI 300 Index gained 0.7 percent.

- In South Korea, the Kospi index was up 2.6 percent and the Kosdaq was up 2.5 percent.

- Australia's S&P/ASX 200 added 0.81%.

- Futures on the Nasdaq 100 were up 0.5 percent, the S&P 500 was up 0.35 percent and the Dow Jones Industrial Average was up 0.21 percent.

This article was AI-translated and verified by a human editor