Monday's Markets Update (December 18, 2023)

18 Dec 2023 by rate3

On Monday, stocks extended their winning streak to 7 weeks, led by energy sector gains. Nasdaq rose, Apple shares dipped on patent issues. Investors expect lower rates, despite mixed views from policymakers. BTC and ETH declined on a pre-market but then surged back during a day remaining in a rising pattern.

Details

In December, the NAHB/Wells Fargo HMI improved to 37 from 34 (lowest in a year), beating predictions. First rise in 5 months due to declining mortgage rates, raising buyer interest and sales expectations. Sub-indexes for sales and buyers also grew.

Crypto

On-chain data: Digital asset investment products saw minor outflows of $16m, ending an 11-week streak of inflows. Trading activity remained high at $3.6bn, suggesting profit-taking rather than a shift in sentiment. Altcoins saw $21m of inflows, with Solana, Cardano, XRP, and Chainlink being the main beneficiaries.

Commodities

Gasoline futures surged above $2.18/gallon, rising with oil amid supply threats and higher crude prices. Red Sea attacks and longer export routes contributed to the increase. Anticipated multiple rate cuts by the Fed and softer dollar amplified the price rise, while gasoline stocks rose unexpectedly.

World Markets

Shanghai Composite and Shenzhen Component dropped to their lowest levels in over a year, driven by economic uncertainties in China. Mixed economic data and lackluster policy plans from top officials dampened market sentiment. Investors now look to the People’s Bank of China’s loan prime rate decisions.