🧧 China partied hard

China’s celebrations bode well for the economy | ASML hit it out of the park | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for January 26th in 3:08 minutes. ❤️ This Valentine’s Day, you’ll want to spend time with the love of your life, the apple of your eye, your one and only portfolio. Join IG’s Martin Harris for [How To Build A Smart Portfolio]( on February 14th, and discover the asset classes you could end up falling for. [Get your free ticket now]( Today's big stories - Stats from China’s holiday season showed that the country's slowly getting back on its feet - Crypto looks like it could be turning over a new leaf – [Read Now]( - ASML’s quarterly results show the firm’s thriving despite the chip slowdown High-Flown Celebrations [High-Flown Celebrations] What’s Going On Here? Data out on Wednesday [showed]( that Chinese families celebrated the Lunar New Year in high style. What Does This Mean? Relaxing Covid restrictions was never going to set China’s economy straight overnight, but there have been some promising signs that the country’s finding its feet again. Just look at the stats for China’s most important holiday, the Lunar New Year: the first four days of the break each notched up an average 24 million journeys by road, rail, air, and water, as Chinese folk packed up en masse and headed home to be with family. And box office takings were also hale and hearty, coming in even higher than pre-pandemic levels – a feat that hotel bookings managed to pull off too. In short, there’s been a mood shift after last year, when the economy grew at its second-slowest pace since the ‘70s, and that suggests China could come back swinging even faster than expected. Why Should I Care? The bigger picture: Feeling flush. China’s holidaymakers weren’t all warming themselves by the family hearth, mind you: some sought more exotic locales, with experts estimating that outbound air travel quadrupled compared to last year, while overseas hotel stays doubled. That’s got analysts hoping that China’s waves of pent-up demand will turn the tide of the global economy and underpin a full-blown recovery. And the country has the ammunition to do it: data out earlier this week showed that Chinese households added a massive $2.6 trillion to the bank last year – the biggest pool of new savings in history. For markets: Infectious optimism. China’s good mood seems to be rubbing off on everyone else: things have been looking up for all kinds of assets since restrictions eased, from shares in mining companies to stock markets in popular tourist destinations. In fact, research from Bank of America [showed]( that investors poured a record-breaking $12.7 billion into emerging-market debt and equity funds in a single week earlier this month. You might also like: [Now could be the time to buy China’s stocks again.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=High-Flown Celebrations&utm_campaign=daily-global-26-01-2023&utm_source=email) Analyst Take Three Reasons To Believe The Crypto Bottom Is Behind Us [Three Reasons To Believe The Crypto Bottom Is Behind Us]( By Jonathan Hobbs, Analyst This year has barely started and it’s already been [good for crypto](, with the overall market [up about 34%](. And sure, [there are caveats]( here (not to mention a chance of volatile pullbacks in the short term). But when I look at the bigger picture, I see [three reasons]( to believe the crypto market has already bottomed out. So, that’s today’s Insight: [three things that suggest the worst is over for crypto.]( [Read or listen to the Insight here]( Finimize x Revolut They say you can’t put a price on knowledge, so we didn’t. Now you can get six free months of [Finimize Premium](, meaning you can sink your teeth into our expert analysts’ Insights without paying a penny. And when you’re ready to put that knowledge to use, you can enjoy three months of [free Revolut Premium]( too. We’ll even send you [£10 or equivalent]( as a thank you for reading this far. SPONSORED BY IG You’re unique – so your strategy should be too You aren’t exactly like anyone else: you have your own background, goals, and limitations. So [your investment strategy]( should be as individual as you are: it should cater to your risk appetite, financial ambitions, and your current set up. Well, now you can [build your ideal investment strategy with IG Academy courses](: you’ll find out how to [craft a hardy strategy](, and discover effective ways to [manage your portfolio](. The course will fit into your lifestyle, even if your schedule is jam-packed: you’ll learn using [short, step-by-step videos]( that you can start and stop at any time. [Discover the strategy that fits you with IG Academy](. [Find Out More]( Your capital is at risk. The value of shares, ETFs, and ETCs can fall as well as rise, which could mean getting back less than you originally put in. Blue Chips [Blue Chips] What’s Going On Here? Chip equipment maker ASML [gave]( a knockout quarterly update on Wednesday. What Does This Mean? The demand for chips in smartphones, computers, and data centers has been dragged down by the sluggish global economy, but ASML has managed to dodge the worst of it so far. See, the company’s the one and only purveyor of the complex machines that chip giants like TSMC, Intel, and Samsung need to make the most advanced chips. And those all-important customers aren’t keen to cut back: after all, the wait time for these machines is actually longer than the expected length of the recession, so they need to make sure they’re well-equipped for the rebound that's predicted to hit later this year. ASML won’t be complaining: the firm reported an unexpectedly strong profit last quarter, and said it expects sales to grow over 25% this year. Why Should I Care? The bigger picture: Bargaining chips. ASML has a $45 billion gold mine of backlogged orders, so that sales outlook doesn’t seem too far-fetched. But every gold mine comes with a few hazards: in this case, there’s the US’s ban on sending cutting-edge chip machines to China. But luckily for ASML, the equipment it ships to Chinese firms is generally less advanced technology that isn’t under embargo, which explains why the firm believes the restrictions will only dent its backlog by 5%. For markets: Shape up or chip out. The chip industry isn’t out of the woods yet, but it looks like it might be heading in the right direction: now that China’s re-opening and artificial intelligence is on everyone’s lips, some analysts [think]( the sector will avoid hitting the lows of a few months ago. And the forward-looking stock market’s cottoned on to that too, with an index that tracks chip colossuses jumping 15% this year. You might also like: [Here’s what’s driving semiconductor stocks.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Blue Chips&utm_campaign=daily-global-26-01-2023&utm_source=email) 💬 Quote of the day “Every improvement in communication makes the bore more terrible.” – (Frank Moore Colby, an American writer) [Tweet this]( 🌍 Finimize Live 🥳 Coming Up Soon… All events in UK time. 📑 [The Risks And Regulations When Investing In Crypto](: 10am, January 27th 📈 [How To Hedge Against Volatility With Crypto](: 5pm, February 2nd 💰[How To Build A Smart Portfolio](: 1pm, February 14th 👩‍💻 [Opportunities For Women In Blockchain 2023](: 12.30pm, February 16th 🎯 On Our Radar - Say cheese. Even scientists are puzzled by [how dimples work](. - Take your own advice. Understanding this paradox can make you [a whole lot wiser](. - Once upon a time. We can help fight climate change with [good old-fashioned stories](. - Panic! This beloved, brooding noughties band [is breaking up](. - The fuzz’s faux pas. 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