IG Group: The outlook for Hong Kong stocks before 2025 is full of challenges, and US stocks may experience increased volatility
IG Group released its 2024 market review and 2025 investment outlook, pointing out that despite the rebound of the Hang Seng Index, the outlook for Hong Kong stocks remains challenging. Analyst Hebe Chen mentioned that political uncertainty in the United States could impact economic recovery. U.S. stocks face heightened volatility in the post-election year, with historical data showing weak performance in that year. IG is optimistic about Bitcoin and gold, expecting Bitcoin prices to reach between $110,000 and $125,000 next year, while gold is expected to challenge the $3,000 high
According to the Zhitong Finance APP, UK-listed company IG Group released its 2024 market review and 2025 investment outlook, stating that although the Hang Seng Index successfully broke a four-year decline this year and recorded a strong rebound, the outlook for the Hong Kong stock market remains challenging. IG market analyst Hebe Chen pointed out that the incoming U.S. President Trump will return to the White House early next year, bringing more uncertainties for economic recovery and regional stability.
In terms of U.S. stocks, senior market analyst Christian Henke indicated that the U.S. stock market may face challenges of policy adjustments and increased market volatility next year, especially in the post-election year (the first year after the election). Historical data shows that post-election years are typically the weakest in the U.S. presidential cycle, with an average increase of only 4.8% for the index.
Additionally, IG is optimistic about Bitcoin and gold next year. IG stated that the cryptocurrency market has steadily grown this year and is expected to achieve new breakthroughs next year. The appointment of the new chairman of the U.S. Securities and Exchange Commission (SEC) is expected to bring more moderate cryptocurrency regulatory policies, rebuilding market confidence. The active participation of institutional investors and capital inflows further support Bitcoin's upward potential. It is anticipated that in January to February next year, Bitcoin prices could reach $110,000 to $125,000, with a target price for Ethereum set at $3,800 to $4,000.
Furthermore, against the backdrop of global economic uncertainty and geopolitical risks, gold, as a traditional safe-haven asset, will continue to be favored by investors. IG predicts that gold prices are expected to challenge the historical high of $3,000 next year