Tuesday's Markets Update (April 23, 2024)

23 Apr 2024 by rate3

On Tuesday, stocks rose led by communication services, industrials, and healthcare while PMI data signaled a slowdown in manufacturing and services sectors. Internationally, gold continued to slide on a dollar strength and on media's geopolitical news lessened negativity. BTC and ETH chilled above 66K and 3.2K while the rest of the crypto market mostly flat-lined.

Details

Service sector weakened in April (according to the Richmond Fed) with falling revenue and spending. However, demand rebounded and firms remain optimistic about the future, despite rising costs. (RFED)
Building permits fell again in March to a 6-month low, despite a small rise in the West. This drop reflects continued weakness in the housing market due to high borrowing costs. Single-family permits also declined. (Census)
Private sector barely grew in April according to a key SP PMI survey. Both manufacturing and services slowed down, with new orders falling and employment declining for the first time in almost 4 years. This suggests rising interest rates and inflation are hurting the economy.(SP)

Crypto

A group in Switzerland is proposing a law change to add Bitcoin to the Swiss National Bank's reserves. This would require collecting signatures for a public vote and potentially changing the country's constitution. It's a way for citizens to propose changes to laws or the constitution. People collect signatures on a petition, and if enough are gathered, the proposal goes to parliament for a vote. (source)

World Markets

Germany's manufacturing PMI edged up slightly in April but remains in contraction. New orders fell sharply, and demand remains weak. However, there are signs of improvement, with slower production declines and rising optimism. (PMI)
France's factory activity contracted for the 15th month in April, worse than expected. New orders plunged, output fell, and employment continued to decline. Manufacturers are also facing rising input costs and are pessimistic about the future. (PMI)
India's business activity grew at the fastest pace in nearly 14 years in April. Both manufacturing and services boomed, with record highs in new orders and foreign sales. Employment rose slightly, and businesses remain optimistic about the future. However, inflation continues to be a concern. (PMI)

Currencies

Dollar weakened after data showed a slowdown in manufacturing and services sectors, renewing expectations of interest rate cuts by the Federal Reserve later this year. Investors are watching key economic data this week for confirmation.
The Japanese yen hit a new 34-year low (154.8) against the dollar, raising concerns about excessive weakness. Finance Minister Suzuki warned of potential intervention, while BOJ Governor Ueda left the door open for future rate hikes to combat inflation. Investors are watching the BOJ's policy meeting this week for further clues.

Commodities

Gold prices plunged to a three-week low below $2,300 per ounce. Easing tensions in the Middle East and a strong dollar fueled the decline. Investors are waiting for key US economic data for further clues on rate cuts.