Monday's Markets Update (March 11, 2024)

12 Mar 2024 by rate3

On Monday, stock market sees mixed performance. The Dow ticks up slightly, while the S&P 500 and Nasdaq dip. Tech sell-off hits Nvidia, AMD, and other tech stocks. However, materials, energy, and consumer stocks rose. Investors anticipate key inflation data before the Fed meeting on March 20. Internationally, Japan managed to avoid entering a recession, and steel prices reached a 9-month high. BTC reached a new ATH at $72.4K, leading the rest of the market, with ETH closing above $4K again. Many altcoins, including XRP (+20%), Litecoin (+17%), Avalanche (+15%), and Algorand (+14%), significantly outperformed two leading coins.

Details

Consumers inflation expectations stay put at 3% for next year, matching a 3-year low. Gas prices expected to rise slightly, while some sectors like medical care, education, and rent see inflation dip. Long-term inflation outlooks inch up slightly. (BoNY)

Crypto

Bitcoin price skyrockets to a new high above $72K, jumping over 70% this year with its total market cap above $.14 trillion. This surge pushed BCT total value above silver's $1.382 trillion for the first time. (source)

World Markets

Japan barely avoided a recession. GDP grew slightly (0.1%) in Q4, revising previous estimates. Capital spending surged, exports rose, and net trade helped offset weak consumer spending and government cutbacks.
Japanese big manufacturers turn gloomy. Business sentiment tumbles (survey index -6.7%) despite economic growth. Concerns over global issues and potential rate hikes weigh on sentiment. (Esri)
Germany's inflation dips to 2.5% (lowest in 2 years), beating expectations. Food and energy slow down, core inflation steady. Monthly price increase falls short of forecast. (Des)

Currencies

China's currency strengthens (past 7.2 yuan/dollar) on inflation data. Consumer prices unexpectedly rose in February, sparking mixed signals for future stimulus. Producer prices remain low, suggesting economic recovery may be fragile.

Commodities

Steel prices in China drop to a 9-month low (CNY 3.5K/tonne) on worries about weak demand. Imports fall 8.1% year-on-year, while steelmakers ramp up iron ore purchases. Investors wait for China's loan data to gauge future demand.