Thursday's Markets Update (June 6, 2024)

06 Jun 2024 by rate3

On Thursday, stocks paused after recent gains, with investors waiting for clues on interest rates. Internationally, the ECB cut its rate to the expected 4% but raised its inflation forecast. BTC and ETH hold their levels.

Details

Jobless claims rose above expectations to a 2-month high, reaching 229K. This suggests a cooling labor market, potentially leading to Fed rate cuts. The overall trend remains slightly positive with the 4-week average down. (DOL)
Employers announced fewer job cuts in May than in April or the prior year. However, hiring also dropped to its lowest level in a decade, suggesting less movement in the job market. This comes despite overall job cuts being lower year-over-year. 1Y trend: "Up" (CH)

World Markets

The European Central Bank cut interest rates by 25 basis points to 4% for the first time in nine months as inflation eased but remained above target. They lowered rates to fight inflation while keeping an eye on future economic data. Inflation forecasts were actually revised upwards, with growth expected to pick up slowly in the coming years. 1Y trend: "Up" (ECB)
Euro area retail sales did not grow in April compared to the same month last year, despite a small increase in March. This was lower than expected forecasts. 1Y trend: "Side" (EC)
Russian car sales jumped 150% in May, likely due to a low sales base in 2022 following sanctions. 1Y trend: "Up" (Aeb)

Commodities

Oil prices rose over 2% for a second day, reaching $75.6 per barrel. This increase follows the European Central Bank's interest rate cut and speculation of a similar move by the Federal Reserve in September. The Fed rate cut is seen as likely to boost economic activity and oil demand.