Thursday's Markets Update (February 22, 2024)

23 Feb 2024 by rate3

On Thursday, the Wall Street rallies on Nvidia's strong earnings. The S&P 500 hits a new high, and the Nasdaq records its biggest gain since 2023. The Dow Jones breaches 39K for the first time. Nvidia's stock soars 16.4%, and its market cap surpasses $1.9 trillion.

World markets are also fueled by AI optimism, with German DAX hitting ATH and China's stock markets rising on a weekly basis after almost a year of continuous downfall. Nickel prices surged due to geopolitics.

The crypto market was mixed, with BTC and ETH slightly in the red but still holding their record 2-year levels. Some major altcoins, like Polygon, added more than 5%, while others, like Polkadot or Avalanche, closed flat.

Details

The number of people claiming unemployment benefits has decreased, with a low claim count of 201K, below market expectations but with sharp declines in California (-8,584), Kentucky (-3,655), and Michigan (-1,907). Overall, this suggests a strong labor market with low unemployment, giving the Federal Reserve leeway to hold interest rates higher if inflation remains high. (DOL)
The Chicago Fed National Activity Index decreased in January, indicating contraction. Three of four broad categories of indicators decreased, with production-related indicators contributing the most to the decline.(CFed)
DAX 40 hits record high at 17,370, boosted by tech rally post Nvidia forecasts. Mercedes-Benz raises dividend despite sales decline, lower earnings outlook. Delivery Hero drops 6% after terminating Foodpanda sale talks. Germany's private sector contracts in February, led by manufacturing output decline.

Crypto

BlackRock rapidly acquired 122,600 BTC, worth $6.31 billion in six weeks, becoming the 11th largest holder. This strategic move demonstrates broader acceptance of Bitcoin as an asset class. (source)

World Markets

Shanghai Composite flat around 2,988, set for over 4% weekly gain. China's policy measures and monetary easing boost investor confidence. Beijing implements market stabilization measures, PBOC cuts bank reserves and mortgage rates. Chinese tech stocks benefit from AI excitement. Gains from COL Group, Chengdu Hi-Tech, ChongQing Changan. Losses from Wuxi Apptec, PetroChina, Luxshare Precision.
February 2024 HCOB Eurozone Composite PMI increased to 48.9, signaling a slower decline in output. New orders fell as inflation rates rose but employment increased and business confidence improved on expectations of lower living costs and interest rates.(SP)
Euro Area inflation rate stable at 2.8%; core rate at 3.3%. Inflation slowed for food and goods, while energy prices declined less. Monthly CPI dropped 0.4%.(EuroStat)
February's HCOB Flash Germany Manufacturing PMI fell to 42.3, the lowest in four months, showing lower output and new orders. Job losses were high, input prices down, and business sentiment turned pessimistic.(SP)

Currencies

Russian ruble steady near 2-month low (92 r/usd) as EU sanctions and US energy trade restrictions weigh. Tankers pause loading, Ukrainian attacks on refineries impact fuel production. Central Bank slashes current account forecast, key interest rate at 16%. Possible pause in rate hikes due to easing inflation risks.

Commodities

Nickel futures surged above $16,500 per tonne due to sanctions on Russia, boosting supply concerns. However, oversupply projections for 2024 and weak EV adoption dampened the bullish sentiment. Australia introduced stimulus measures to support local nickel producers amid mining plant shutdowns.