Monday's Markets Update (February 26, 2024)

27 Feb 2024 by rate3

On Monday, the Dow, S&P 500, and Nasdaq closed slightly down, with utilities, communication services, and real estate leading the decline. Amazon joined the Dow, replacing Walgreens Boots Alliance. On the world's arena, Xi supported dwindling Chinese markets by encouraging consumers' goods producers. Oil rebounded on Lebanon's supply cuts. The dollar was steady as traders waited for new macroeconomic data. Crypto markets were in deep green as BTC rose over 54K, entering its Oct 2021-Jan 2022 range, and ETH shot above 3.1K. The market was led by Monero (+6%), Solana (+5%), Polygon (+5%), and Cosmos (+5%).

Details

Building permits in January fell by 0.3% to 1.489 million. Approvals for buildings with five or more units decreased, while single-family authorizations increased. Declines in the South, increases in the West, Midwest, and Northeast regions. (CB)
The Federal Reserve Bank of Dallas manufacturing index improved to -11.3 in February 2024, from -27.4 in the previous month. Production, new orders, capacity utilization, and shipments increased, while employment and future indices also improved. Wage and input costs rose, while selling prices were unchanged.(DF)

Crypto

Japan's cabinet, led by PM Kishida, approved a bill to allow more flexibility for venture capital firms and investment funds in dealing with cryptocurrencies. This aligns with Kishida's focus on supporting Web3 firms and marks a shift from strict regulations, reflecting Japan's aim to stay competitive in the digital landscape.(source)

World Markets

The Hang Seng fell 0.54% on Monday, led by financials, consumers, and tech, as uncertainties persisted both at home and abroad. Chinese President Xi Jinping's remarks on boosting consumer product sales capped the decline.
Japan's January inflation rate fell to 2.2% from 2.6% YoY, the lowest since March 2022, mainly due to slower food price increases. Core inflation dropped to 2.0%, exceeding expectations but remaining within the Bank of Japan's 2% target. Prices fell for fuel and certain services, while transport and education costs rose. On a monthly basis, prices remained stable. Despite this, Japan's economy entered a technical recession in Q4, losing its third-largest global ranking to Germany.(StatJap)
European stocks were lower, with the STOXX 50 and STOXX 600 declining after reaching record highs. Traders await key economic indicators and Fed policymaker appearances, while the energy sector underperformed and basic materials outperformed.
Russian stocks surged 2% on Monday as sanctions on Russian companies and individuals were less severe than expected, with key commodity exporters escaping penalties.

Currencies

The dollar index held steady near 104 as investors await key inflation data, including the personal consumption expenditures price index, which could guide Fed monetary policy.

Commodities

WTI crude futures rebounded to $77/barrel after a 2.5% drop, driven by strengthening US markets, Libyan exports disruptions, and high refinery margins. Foreign buyers are turning to American crude due to shipping issues in the Red Sea.