Tuesday's Markets Update (July 18, 2023)

18 Jul 2023 by rate3

On Tuesday, retail sales was up less than expected, and industrial production decreased for 2nd month. Nasdaq went down 0.4% on an opening, as traders assimilated corporate results and economic data. BTC is still edging down on a continuing correction after XRP-led short-term price explosion.

Details: Retail sales rose 0.2% in June, below forecasts but still signaling resilient consumer spending. Core retail sales surged 0.6%.

Comments: The detailed retail sales report showed that retail sales rose 0.2% month-over-month, below forecasts of a 0.5% rise. However, the core retail sales, which exclude automobiles, gasoline, building materials, and food services, surged 0.6%. This suggests that consumer spending remains resilient, even in the face of rising inflation.

Commodities
Oil: Prices rose above $75 per barrel on Tuesday, recovering from two straight sessions of losses. The rise was driven by signs of tightening US oil supplies, as well as the resumption of production at two Libyan oil fields.

Comments: It is too early to say whether the rise in oil prices will be sustained. However, despite weaker Chinese economic growth, the factors that drove the rise (such. f.e. as tightening oil supplies) are likely to remain in place for the foreseeable future, which could lead to further price increases.

Tin: Prices hit a 5-month high on supply concerns. Mining to be suspended in Myanmar, Indonesia to ban tin ingot exports.

Comments: The recent rise in tin prices is being driven by supply concerns. The demand side for tin is also somewhat uncertain. Global semiconductor sales have been declining, which could lead to lower demand for tin soldering. However, other sectors, such as packaging and electronics, are still growing, which could offset some of the decline in semiconductor demand. Overall, the outlook for tin prices is uncertain. The supply concerns are likely to keep prices elevated in the near term. However, the demand side could weigh on prices in the longer term.