Monday's Markets Update (May 13, 2024)

13 May 2024 by rate3

On Monday, stocks paused as investors wait for inflation data. Apple surged on news of a potential integration with ChatGPT. Globally, copper prices continued to rise on demand expectations, while the Euro keeps depreciating against the dollar on expectations of ECB cuts. BTC surged above 63K on sudden buying, while ETH remains under 2.9K. The rest of the crypto market is mixed, with Solana adding 2% while Avalanche dropped 1%.

Details

Consumers expect prices to rise faster in the next year, with inflation forecasts hitting a 6-month high of 3.3%. This applies to everyday items like groceries and gas, as well as housing and education. Long-term inflation views are mixed, while wage growth expectations dipped and job security worries rose. (NyFed)

Crypto

Financial advisors rarely talk about crypto with clients (only 1%) due to legal worries. Even though most (89%) have never given crypto advice, a large portion of crypto owners (67%) want professional guidance, especially those looking to grow their holdings or hedge against inflation. As younger, tech-comfortable investors enter the market, demand for crypto and other digital assets is likely to grow. (source)

World Markets

India's yearly inflation dipped to a new low of 4.83% in April, staying within the central bank's target. Housing and clothing costs slowed, but food prices rose. This suggests the central bank might keep interest rates steady. (Mospi)
Angola's inflation hit a 7-year high in April 2024, reaching 28.2%. This ongoing surge is linked to a weaker currency and rising food prices. The government's efforts to control foreign exchange haven't helped either.

Currencies

The dollar dipped to 105 as investors awaited US inflation figures that could impact Fed interest rate decisions. Fed officials signaled a wait-and-see approach on rate cuts, despite rising inflation expectations. With mixed economic data, markets are looking to April's inflation report for clues on future rate changes.
The Euro is strengthening as investors wait for economic data that will influence central bank decisions. The European Central Bank is expected to cut rates sooner than the US Federal Reserve, which might keep the Euro strong. The Bank of England might also follow suit with a rate cut later this year.
The Chinese yuan weakened against the dollar due to a mix of factors. Inflation is rising slightly, while other economic data is weak. The US tariff announcement added pressure. China's central bank may cut rates to counter this, independent of US actions.

Commodities

Copper prices continue to surge in May (4.76 per pound), hitting a two-year high due to strong demand for electric vehicles, renewable energy and automation. Growing concerns about future shortages fueled the rise as mine production struggles to keep pace. China, a major consumer, continues to import copper despite high prices, while limited supplies squeeze smelters. This trend could lead to a 10% drop in global copper output in 2024.

Comment: It's Wrong Every Way

From the plains of Ukraine to the seas of the Philippines, from Brazilian jungles to Middle Eastern deserts, from the ice lands of Finland to the grass plains of Africa, we can see that Boomer policy to create a worldwide elite bureaucracy, supported by aviacarriers, to rule the entire world has backfired massively.

We have authoritarians after authoritarians going public and promising us not a better future for ourselves or our children, but a war without borders, sense, or end - a war unleashed for a whole bench of weirdly wrong reasons.

Although everyone on the planet from Gen X, Millennials, and Gen Z, except of course some outlayers, do not want that future for themselves. The majority of Gen X, Millennial, and Gen Z have embraced new communication technologies since birth or young ages, and now all three generations have accumulated enough personal experience of communicating with total strangers from other parts of the world to not believe in Boomers' nonsense about "nationalities" and "separate paths to a bright future in an underground bunker".

There is no such thing. Humans have always been cross-pollinating, both physically and mentally, like crazy. In twenty-first century it makes "nationality", "state", or "border" purely inventions of megalomaniacs who use the primal fears of crowds to gain and maintain power no matter what.

Instead of what we are proposing is not "multi-polarity" (which means the several authoritarians and their families ruling us for eternity), but decentralization - meaning that we, the three generations, rid ourselves of megalomaniacs in power and govern ourselves with the tools we have created.

Yes, there may be wars, and they may even be bigger ones, but they will not result in the incredible misery and enslavement that Boomer-led governments promise us.

Eternal War or Decentralized Resistance. You choose!