Tuesday's Markets Update (June 4, 2024)

04 Jun 2024 by rate3

On Tuesday, stock indexes were uncertain after mixed economic data. Job openings fell sharply, but factory orders rose. Real estate and consumer staples led the gains, while energy stocks fell due to lower oil prices. On global markets, the Indian rupee weakened after initial election results suggested a tighter win for Modi's party. BTC and ETH pushed up slightly, while some of the major coins such as Uniswap (+22%) outperformed.

Details

Job openings in the dropped to an 18-month low in April, falling below expectations. The decline was widespread across most regions and industries, except for the South and private education. 1Y Trend: "Down" (BLS)
Economic optimism dropped to a 6-month low in June (40.5). This index has been negative for over 2 years. Consumers feel worse about their finances (47.9) and government economic policies (36.7). However, there's a slight improvement in the perceived short-term outlook (36.8). Investors are slightly more optimistic than non-investors. 1Y Trend: "Down" (Techno)

Crypto

Thailand approved its first Bitcoin ETF, allowing wealthy investors to invest locally. This follows a recent rule change permitting investment in foreign Bitcoin ETFs through private funds. The new ETF, launched by One Asset Management, is set to begin trading soon. (Source)

World Markets

Germany's unemployment stayed at a high 5.9% in May, the sixth month in a row. This is worse than expected, with the number of unemployed rising by 25,000 to 2.76 million. This continued increase points to a struggling German economy. 1Y Trend: "Down" (Stat)
India's stock market experienced a dramatic drop, reversing Monday's gains, as early election results cast doubt on a strong win for Prime Minister Modi's party. The key market index plunged nearly 6%, its worst one-day performance in years. This uncertainty about future policies could impact India's recent economic boom. 1Y Trend: "Up"
South Africa's economy grew at a slower pace than expected in Q1 2024, expanding by 0.5% compared to a year ago. This follows a previously reported higher growth rate of 1.4% in the last quarter. 1Y Trend: "Down" (Stat)
Brazil's GDP grew at an average annual rate of 2.45% over the past three decades. This year's Q1 growth was 2.5%, but it fluctuated significantly, reaching a high of 12.4% in 2021 and a low of -10.1% in 2020. 1Y Trend: "Side" (Ibge)

Currencies

Indian currency weakened after initial election results suggested a tighter win for Prime Minister Modi's party. Investors worry a weaker majority could stall economic reforms and raise spending, jeopardizing India's strong fiscal position. Despite the currency dip, India's GDP growth for the latest quarter exceeded expectations. 1Y Trend: "Up"
Brazil's currency weakened due to worries about government spending. Despite economic growth, high spending on social programs raised concerns about inflation. This, along with a trade deficit, caused the Brazilian real to fall to its lowest point in almost a year. 1Y Trend: "Up"