Wednesday's Markets Update (February 14, 2024)

15 Feb 2024 by rate3

On Wednesday, PPI came in lower than expected, and stocks rebounded with the Nasdaq climbing more than 1%. Semiconductors and crypto-related stocks, like Nvidia (+2.5%) and Coinbase (+14%), led gains. In the world's markets, the Euro Area reported stagnation, as palladium prices rebounded from a low base. Crypto continued to surge as BTC increased by +4%, surpassing 52K and the $1T market cap mark. On the altcoins side, Avalanche (6%), Cardano (+6%), ETH (+5%), and Polygon (+5%) are leading the pack. In other news, the BlackRock ETF received an additional $0.5B in just one day.

Details

Producer prices (PPI) decreased 0.2% monthly in December 2023, more than initially estimated, while core PPI dropped 0.1%. Excluding food, energy, and trade, producer prices rose 0.2%. The BLS adjusts its seasonal factor annually to account for price movements. November and October figures were unrevised.(source)
Job openings rates fluctuated in several states in December, with some increasing and others decreasing. Nationally, the job market remained relatively stable with little change in job openings, hires, and separations rates.(BLS)

Crypto

Bitcoin ETFs are seeing strong demand, with BlackRock's iShares Bitcoin Trust receiving $493 million in inflows on a single day - this Tuesday - and now managing $5.1 billion in assets. This suggests strong investor interest in gaining exposure to Bitcoin through traditional investment vehicles. (source)

World Markets

Luis de Guindos (ECB VP) speech summary: Economic activity stagnated in Q4 2023, with inflation driven by energy effects. Underlying inflation indicators are declining, reflecting a disinflationary trend. Financial stability concerns arise, especially for highly indebted corporates and real estate sectors. Euro area banking system remains resilient, but vigilance is needed. (ECB)
In Q4 2023, the Euro Area economy stagnated due to high inflation, borrowing costs, and weak demand. Germany contracted by 0.3%, while France's GDP stalled. Spain and Italy saw growth, and the Dutch economy ended its three-quarter contraction. The Eurozone economy advanced by 0.1% year-over-year, and full-year GDP growth in 2023 was 0.5%, a significant decline from previous years.(EuroStat)
Industrial production in the Euro Area rose 2.6% monthly in December 2023, exceeding expectations and marking the largest gain since August 2022. Durable consumer and capital goods output rebounded, but energy, non-durable consumer, and intermediate goods production decreased. Annual industrial activity increased 1.2%, the first yearly rise in ten months.

Commodities

Palladium prices rose above $900/ounce due to bargain buying amid recent price declines. Support also came from Eurozone avoiding recession and industrial production rebounding. Despite a surplus expected this year, major producers - South Africa (80th metric tons), Russia (74th mt.), Canada (17th mt.) and the US (14th mt.) - are maintaining output levels. Declining demand for catalytic converters due to EVs has impacted the market on the downside.