Monday's Markets Update (March 4, 2023)

05 Mar 2024 by rate3

On Monday, stocks indices closed lower as investors awaited economic data releases and Powell's congressional testimony for insights. Meanwhile, on world markets, gold hit a record high, while Japanese manufacturing continued to expand and Chinese production slowed down slightly. Bitcoin almost reached an ATH but retreated due to spontaneous profit-taking. The rest of the crypto market also performed well, with some major coins such as Dogecoin (+12%) seeing double-digit percentage increases.

Crypto

The second milestone for the Ethereum ETF application passed the Sunday. Analyst predicts 70% chance of approval by May. BlackRock filed for an Ethereum ETF. Futures-based products exist but lack attention. (source)

World Markets

South Korea's GDP grew 2.2% in Q4 2023, up from 1.4% in Q3, with an average annual growth of 6.95% from 1961-2023, peaking at 20.8% in 1969 and hitting a low of -7.3% in 1998.(BOK)
The au Jibun Bank Japan Services PMI rose to 52.9 in February 2024, marking 18 months of sector growth, driven by a significant increase in new business from tourism and product launches. Employment surged, but growth was mainly domestic as foreign demand stagnated. Input cost inflation eased, while output cost inflation grew. Business sentiment dipped but stayed optimistic about future investment and expansion.(SP)
The Caixin China General Service PMI fell to 52.5 in February 2024, marking the slowest expansion since November. Despite increased export orders, overall new work and employment dropped. Higher input prices led to increasing output prices, and business sentiment hit a four-month low. (SP)
Turkey's 10-year bond yield reached 26% amid rising inflation and upcoming elections. Annual inflation hit 67% in February, with expectations of it surpassing 70% in May. Concerns persist about potential lira depreciation and looser fiscal policies post-elections.

Currencies

Euro surges to 1.085, highest since February, as investors anticipate ECB meeting for clues on future interest rates. Inflation eases but core rate remains high, suggesting cautious approach from ECB.

Commodities

Gold hit a record $2,115 per ounce as investors predicted FED interest rate cuts. This follows data showing a 16-month contraction in US manufacturing and weak consumer morale.