Thursday's Markets Update (March 14, 2024)

15 Mar 2024 by rate3

On Thursday, stocks fall after inflation data raises concerns. Higher yields and mixed economic data (strong producer prices, weak retail sales) cause investor jitters. The energy sector rises with strong oil prices. Internationally, the South African manufacturing sector is experiencing slow growth due to rising energy prices. BTC corrected sharply following stocks, bringing down the rest of the crypto market, while some coins such as Polygon and Stellar dropped more than 5%.

Details

Producer prices (PPI) jump 0.6% in Feb, highest since Aug 2023. Exceeds expectations (0.3%). Goods surge 1.2% (energy +4.4%, food +1.0%). Services rise 0.3% (transportation +0.9%, trade -0.3%). Core inflation slows to 0.3% (Jan: 0.5%) but tops estimates (0.2%). Yearly inflation hits 1.6% (Jan: 0.9%), exceeding forecasts. (BLS)
Jobless claims drop below expectations: 209th in the week ending March 8th (vs. expected 218th). (DOL)

Crypto

Major banks are creating digital tokens (crypto) for real-world assets like bonds and deposits ($108 trillion+). This tokenization is being explored cautiously. Regulators in the US and Hong Kong are involved, with the Fed allowing some exploration by member banks. Banks are primarily using private, permissioned blockchains endorsed by regulators, not fully public ones. (source)
Blockchain gaming surges: daily active wallets jump 20% in February. Play-to-airdrop campaigns and rising crypto game token prices are seen as key drivers. This trend suggests growing interest in this sector. (source)

World Markets

South Africa's manufacturing sector surges 2.6% YoY in January, exceeding expectations. This marks the fourth month of consecutive growth, driven by chemicals, wood products, textiles, and others. (STATSA)

Currencies

Stronger dollar (above 103) reflects persistent inflation. Higher producer prices, lower jobless claims, and weaker retail sales data raise concerns. Reduced hope for Fed rate cuts in 2024 (56.7% chance for June cut, down from 58.2%).

Commodities

Oil prices surge to highest since November ($81.26/barrel) due to several factors: IEA predicts higher global oil demand in 2024; oil inventories unexpectedly declined last week; attacks on Russian refineries and ongoing conflicts add uncertainty; OPEC+ decision to limit supply strengthens prices.