Monday's Markets Update (April 8, 2024)

09 Apr 2024 by rate3

On Monday, stocks finished flat ahead of a data-heavy week. Investors are awaiting inflation data, consumer sentiment, and Fed clues on rate cuts. Earnings season starts Friday. Tesla surged 3% on robotaxi news, but Apple, Nvidia, and others fell. In the world's markets, Israel held interest rates amidst the war, copper prices rose on EU and China manufacturing resurgence hopes. Both BTC and ETH were in positive territory. Ether was leading the surge with an impressive gain of over 9%, while Bitcoin was up by more than 4%. It feels like traders have started to steer the market preparing for the "sell the news" event after the upcoming BTC halving.

Details

Consumers expect inflation to stay around 3% for the next year, unchanged for 3 months. This is a 3-year low. They anticipate higher costs for necessities like gas, food, and healthcare, but steady home price growth. Long-term inflation expectations are mixed, with 3-year views edging up and 5-year views down. (NEFed)

Crypto

BlackRock and Fidelity's Bitcoin ETFs (IBIT & FBTC) were launched 59 days ago, they've seen continuous investment, outperforming 99.9% of all ETFs ever launched since the market began (1990s). This surge is likely due to growing institutional interest in crypto, inflation concerns, and a desire for alternative investments in a shaky global economy. (source)

World Markets

The Philippines kept interest rates at a 17-year high (6.5%) to fight inflation. Inflation is rising, especially rice prices, but remains within the target range. The central bank upped its 2024 inflation forecast to 4% but left its 2025 view unchanged at 3.5%. (BSP)
Turkey's Industrial output surged 11.5% YoY in Feb, the fastest pace in 2 years. Mining and manufacturing led the gains. Despite a slowdown in electricity production, this marks a strong rebound from January's decline. (Tuik)
Israel held interest rates steady at 4.5% for a second meeting. This aims to boost the economy and control inflation despite war-related uncertainties. While current inflation is within their target range, future expectations are rising. Policymakers are cautious due to war, a weakening shekel, and rising oil prices. GDP growth is still projected at 2% for 2024 and 5% for 2025.

Commodities

Copper prices soared to a 14-month high (over $4.25/lb) on strong global manufacturing data. Positive PMI readings from Germany, China, and the US signaled rising demand for copper. Supply disruptions in Africa and production cuts by Chinese smelters further boosted prices.