Thursday's Markets Update (May 16, 2024)

17 May 2024 by rate3

On Thursday, stocks seesawed and closed in red, still holding near record highs as housing and industrial data hinted on a recession. GameStop and AMC plunged. On world's markets, EU stocks hold around the flatline despite easing inflation as the Japan economy contracted. BTC (-2%) and ETH (-3%) declined.

Details

Building permits dropped 3% in April, missing expectations. Permits for apartments sank to a 4-year low, while single-family permits also declined. Only the South and Northeast saw permit increases, with all other regions experiencing decreases. (Census)
Housing starts rebounded in April (5.7%) but missed expectations (1.42M). High costs continue to dampen the market, with single-family starts dipping. Construction rose in some regions but fell in others. (Census)
Jobless claims fell slightly to 222,000 but remain above average, suggesting a weakening labor market. (DOL)
The Philly Fed manufacturing index fell sharply in May, missing expectations. New orders and shipments contracted for the first time in months. Despite some positive signs in employment indicators, factories are still shedding jobs. Prices remain elevated but below historical averages. Businesses are cautiously optimistic about future growth. (PhilFed)

Crypto

Tokenized treasuries, digital versions of government bonds on blockchains, are surging in popularity. About $1B in treasury notes has been tokenized on blockchain. The launch of a major tokenized treasury fund by BlackRock is seen as a key driver, with data showing a sharp rise in tokenized treasuries since then. (source)

World Markets

Turkey's vehicle sales plunged to a 16-month low of 75,919 units in April, down significantly from March's 109,828. This follows a record high of 158,653 units in December 2023. (Osd)
Italian inflation dipped to 0.8% in April 2024, down from 1.2% in March. This suggests the ECB's policies are working as inflation falls across most goods and services. Energy prices continue to decline, except for regulated energy. (Istat)
Japan's economy shrank more than expected in Q1 2024, contracting 0.5%. Weak consumer spending, down for a fourth quarter, and a drop in capital expenditure led the decline. Despite a quake and production cuts, net trade wasn't a major drag. ()Cao