SVET Reports
Wednesday's Markets Update (March 13, 2024)
On Wednesday, stock markets dip after record highs. The S&P 500 and Nasdaq fell slightly, while the Dow Jones gained. Nvidia, Tesla, and Intel dropped, while Amazon rose. On world markets, silver, soybean, and copper prices surged due to a combined effect of a lower dollar, bad weather, and monopolistic manipulation of pricing. BTC shot above 73K, stimulating the rest of the crypto market with BNB (+10%) and MATIC (+8%) leading the way.
Crypto and AI
MicroStrategy raises $500 million through convertible notes to buy more Bitcoin. These notes mature in 2031 and pay interest twice a year. (source)
The EU passed a law regulating AI. It bans harmful applications like facial recognition databases used for mass surveillance and social scoring. "Deepfakes" must be clearly labeled. High-risk AI in areas like law enforcement and education requires strict oversight, transparency, and human involvement. Citizens have the right to challenge AI-based decisions. (source)
World Markets
Russia's inflation surges to 7.7% in Feb, exceeding forecasts (7.4%) and central bank's target (4%). Food and services prices contribute most. Monthly inflation slows slightly. (ROS)
Currencies
Mexican peso strengthens (near 16.66/USD) on hawkish central bank signals. Policymakers prioritize inflation control and advocate for gradual interest rate adjustments. Strong industrial production growth (2.9%) and lower-than-expected inflation (4.4%) support their stance.
Commodities
Silver surges to $24.7/oz (highest since Dec 2023), mirroring gains in other metals. Expectation of central banks easing rates (Fed, ECB in June, BoE in Aug) fuels the rise. However, Bank of Japan is predicted to tighten policy soon.
Soybean prices climb near 3-week highs (~$11.8/bushel) due to lower supply concerns. Brazil revised production estimates downward due to bad weather in key regions like Argentina. However, prices remain down over 9% for the year due to a 2023 surplus.
Copper prices soar above $4/pound (7-month high). Chinese smelters cut production due to low concentrate prices affecting profitability. Specific limits not set, but adjustments planned. Exploring alternatives like using more copper blister to reduce reliance on concentrate.