Wednesday's Markets Update (December 27, 2023)

27 Dec 2023 by rate3

On Wednesday, the manufacturing activity continued to decelerate, while the Nasdaq index rose, contributing to a 45% growth this year. This surge is primarily attributed to the resurgence of the seven largest technology companies and the hysteria surrounding artificial intelligence. Shares of Bit Digital, a prominent BTC miner, experienced an 18.5% increase as the company plans to double its mining fleet by 2024. In the crypto market, both BTC and ETH exhibited growth, with ETH taking the lead with an increase of more than 5%.

Details

In December, Richmond's Manufacturing Index dropped to -11, a 10-month low. Shipments, orders, and employment declined, while backlogs reduced. Vendor lead time improved, and prices and expected price changes increased, maintaining overall pessimism in future local business conditions.

Commodities

Uranium prices nearly doubled to $91/lb in 2023 due to increasing demand and risks to supply, as 22 countries, led by China, announced plans to triple their nuclear power generation by 2050. The surge in prices was driven by volatile fossil fuel prices and decarbonization goals, but faced threats from the invasion of Ukraine, a potential US ban on Russian uranium imports, and supply disruptions in Niger and Canada.

Carbon permit prices rise to €80/tonne, rebounding from a 14-month low. Eurozone manufacturing declines, but firms show optimism for the year ahead. European natural gas market becomes more volatile due to weather, Red Sea disruptions, and ship rerouting.

Canola futures near CAD 640/lb amid low crude oil prices and increased rival oilseed availability. Weak crude oil and strong corn production in the US lowered demand for Canadian rapeseed in biofuel feedstock. Canola exports decreased 23% due to improved weather in rival seed-oil regions.