Friday's Markets Update (April 19, 2024)

19 Apr 2024 by rate3

On Friday, stocks are deep in the red due to escalating tensions in the Middle East, with tech and communication sectors leading the decline. Geopolitical games have negatively impacted markets worldwide, with gold reaching to its ATH again. Meanwhile, BTC continued its sluggish pre-halving surge, rising to 65.2, with the rest of the crypto market following suit uneasily.

Crypto

A new IMF's study examined BTC's cross-border transactions. It found BTC use is widespread globally, especially in areas with limited traditional financial options. The study also highlights the difference between on-chain and off-chain transactions, with on-chain transactions being larger. Bitcoin's ability to bypass capital controls suggests it will play a role in shaping future regulations. Policymakers need to oversee both traditional and crypto activities. (IMF)

World Markets

Japan's core inflation eased slightly to 2.6% in March but remains above the central bank's target. This comes despite a recent policy shift to raise rates and end negative rates. The weak yen and high global prices keep inflation elevated, and the Bank of Japan is expected to take a cautious approach to further tightening. (StatJP)
Malaysia's economy grew faster than expected in Q1 2024, reaching 3.9%. This is the strongest growth in a year, driven by all sectors, especially services. Construction and manufacturing also improved, while agriculture slowed. However, the economy shrank slightly compared to the previous quarter.
Argentina's trade balance swung dramatically positive in March 2024, reaching a surplus of $2.1 billion. This reverses a trend of deficits and comes mainly from a sharp drop in imports (down 36.7%) due to lower purchasing power. Exports also rose slightly (11.5%) on the back of increased sales of agricultural products and energy. (Indec)

Currencies

The British pound stayed weak around $1.24 due to sluggish retail sales and lingering Middle East worries. Despite lower inflation, strong wage growth keeps the Bank of England from cutting rates. The strong dollar, backed by hawkish Fed, adds pressure.

Commodities

Gold surged above $2.4K , hitting record highs again. This is due to rising tensions in the Middle East, following an Israeli missile attack on Iran. The focus on geopolitics overshadowed recent hawkish comments from the Fed about keeping interest rates high.

On Week 17, GDP, inflation, and earnings reports are key. PMI data will gauge manufacturing and services health in major economies. Consumer confidence and interest rate decisions in several countries will also be watched closely.