Tuesday's Markets Update (June 6, 2023)

07 Jun 2023 by rate3

On Tuesday, the Confidence Index didn't performed as expected, NASDAQ (o:13199, c:13276, +0.5%) corrected a bit up on technicals and BTC (o:25533, c:27080, +6%) soared on whales aggressive entries despite the CoinBase

Details:

The US Economic Confidence Index, as measured by IBD/TIPP, saw a slight uptick in June, moving to 41.7 from 41.6 in May. Market forecasts was 45.2. However, it still remained significantly below the optimism benchmark of 50. Around 51% of respondents believed that the economy was in a recession, the lowest figure since May 2022, but only 25% anticipated an improvement.

Moreover, the support for federal economic policies plummeted by 3.5% to 38.6, reaching its weakest level since last August's eight-year low. This decline could be attributed to the recent debt-ceiling deal, which included an agreement to end the moratorium on most student-loan payments later this summer, after a period of over three years. Concerns about inflation were expressed by 89% of respondents, while only 22% believed that wages were keeping up with inflation.

Other Markets Updates:

Russia: In May of 2023, the overall sales of automobiles in Russia skyrocketed by 112% compared to the previous year, reaching a total of 51,466 units. This substantial surge can be attributed to the impact of the reference year, which coincides with the commencement of the Russian military intervention in Ukraine. Nonetheless, it is worth noting that even with this impressive growth, the current sales volume represents less than half of the comparable figures observed prior to the aggression initiated by Moscow, thereby underscoring the enduring consequences of economic penalties imposed by Western nations on the Russian economy.

Brazil: In May 2023, the combined production of cars, light commercial vehicles, trucks, and buses surged by 27.4% compared to the previous month, reaching 227.9 thousand units. This marked the highest level for May since 2020. Year-to-date, auto production grew by 6.2%, with 942,800 vehicles manufactured from January to May. Annually, auto production experienced a growth rate of 10.7%. May's surge can be partially explained by the announcement of a temporary program by the federal government. The program offered direct discounts to consumers. It aims to reduce car prices by up to R$ 8,000.

South Africa: The economic expansion in the Country experienced a significant deceleration, with year-on-year GDP growth slowing down to 0.2% in the first quarter of 2023. This marked a decline from a downwardly revised growth rate of 0.8% in the preceding three-month period. The growth rate observed in the first quarter of 2023 was the slowest since a contraction was recorded in the first quarter of 2021. The deceleration can be largely attributed to the adverse impacts of extensive power cuts implemented by the state power utility Eskom, which reached record levels.