Wednesday's Markets Update (March 6, 2024)

07 Mar 2024 by rate3

On Wednesday, stocks rebound after Powell's comments and data. Fed not rushing to cut rates, labor market strong, Nvidia, Meta, Broadcom up and Apple falls for 6th day. On world's markets, gold surged to the new ATH on Powell's comments and weak job reports, while wheat dropped on oversupply and oil continue to rise. Crypto market was in deep green as all major coins recovered from Monday's crash to their 2 years height. BTC kept above 65K.

Details

Private businesses added 140K jobs in February, below expectations of 150K. Most new jobs were in service sectors, especially leisure and hospitality. Most jobs shed were in mining (-4K) and information (-2K). (ADP)
Job openings fell to 8.86 million in January, the lowest in 3 months and below expectations. The decline was broad-based across most sectors except nondurable goods manufacturing. Job openings also decreased in most regions except the Northeast. (BLS)

Crypto

El Salvador's BTC holdings surpass $150 million, reflecting a $50M profit since adopting it as legal tender in 2022. President Bukele's daily 1 BTC buying strategy has grown their stash to 2,380 BTC, currently valued at $164.7 million. (source)

World Markets

In February 2024, the HCOB Eurozone Construction PM increased slightly to 42.9, indicating a continued but softer decline in activity, with housing remaining weak. New orders fell sharply, affecting purchasing, while employment declines slowed, and future outlook slightly improved. Input costs rose at a slower rate. (SP)
Euro area retail sales fall further in Jan 2024, down 1.0% YoY (1.3% expected) after -0.5% decline in Dec. This marks the 16th consecutive month of contraction. (ES)
Brazil's industrial output surges 3.6% YoY in Jan 2024, exceeding expectations (2.8%) and marking the 6th straight month of growth. (IBGE)
Egyptian stocks surge to record high (32150) on surprise central bank move: 600bps rate hike, currency floatation. Loan rates hit record highs (28.25%), pound weakens towards 50/$1.
Hong Kong's Hang Seng rebounds 1.7% to 16,438 after a drop, driven by hopes of China's stimulus measures (5% GDP target, support by during the annual National People’s Congress) and rising US futures. Tencent, JD.com, and other tech giants lead gains.

Commodities

Wheat prices plummet 5% to 3.5-year low on falling global prices, abundant supply from major exporters like Russia and Ukraine, and slightly increased global wheat production.
US oil prices jump over 2.5% to near 4-month high as lower-than-expected inventory rise, Fed's wait-and-see stance, and OPEC+ cuts support demand. Geopolitical tensions add further pressure.