Friday's Markets Update (June 7, 2024)

07 Jun 2024 by rate3

On Friday, stocks are mixed as higher unemployment surprised markets renewed fears of a slowdown. Internationally, Eurozone's GDP growth continued to slow, showing a marginal increase of 0.4%. Both BTC and ETH dropped by approximately 3% and 4% respectively due to technical sales. The rest of the crypto market tumbled, with Polygon, Uniswap, Polkadot, Algorand, and Cosmos down 7% and more.

Details

The unemployment rate unexpectedly rose to 4% in May, the highest since January 2022. This is a sign of a weakening labor market as both employment levels and labor force participation declined. 1Y trend: "Up" (BLS)

Crypto

DeFi's total value locked jumped 17% in May to $192B, the highest since February 2022, due to rising crypto prices and trading activity. However, despite this growth, fewer users participated, with the number of active wallets dropping 21%. (source)

World Markets

Eurozone's GDP grew modestly at 0.4% compared to previous year, picking up pace after a sluggish period. 1Y trend: "Down" (EC)
Brazil's car production dropped sharply in May, down 24.9% from April and 26.8% from a year ago. This is the second lowest production month this year. (rezko - means "sharply" in Russian, which best captures the significant drop). 1Y trend: "Side" (AN)
Mexico's inflation rose to 4.69% in May, the highest in four months. Food and transportation prices increased the most. However, core inflation, which excludes volatile items, continued to decline to a 16-month low of 4.21%. 1Y trend: "Up" (Inegi)

On Week 12, the Fed rate decision and inflation numbers are key, while Europe and Asia report on growth, industrial output, and trade. China, India, Brazil, and Russia also reveal inflation data. Watch for business confidence in Australia and a rate call from Japan's central bank.