Tuesday's Markets Update (June 11, 2024)

12 Jun 2024 by rate3

On Tuesday, the stock market fluctuated, with the S&P up, the Dow down, and the Nasdaq hitting a new ATH. Technology stocks led the gains, headed by Apple, which rose 6%. On global markets, European stocks declined for the third day due to political concerns. BTC and ETH continued to move south, dragging the rest of the crypto market with them.

Details

Small business confidence ticked up slightly in May, but remained below average. Inflation is still the top concern, though hiring plans are the highest this year. Supply chains seem to be improving, but financing challenges are on the rise. 1Y trend: "Down" (Nfib)

Crypto

The EU's 185 million citizens voted for a new Parliament. The Christian Democrats and Social Democrats fared relatively well, while the pro-business Renew Europe Group, which supports crypto, lost 23 seats. The Greens also suffered losses, while far-right parties made significant gains. (source)

World Markets

European stocks are down for the third day in a row, with the Stoxx 50 and Stoxx 600 declining by 1% due to concerns about political turmoil in France. French President Macron called for a snap election after the far-right's success in the EU election, which could impact his ability to pass legislation. The uncertainty has raised fears about France's fiscal situation, with concerns Macron may resign if his party performs poorly in the election.< 1Y trend: "Up" /li>
Brazil's inflation rose to 3.93% in May, exceeding expectations and reversing a months-long decline. This uptick, driven by food, transportation, and healthcare costs, worries policymakers concerned about rising spending and its impact on prices. 1Y trend: "Side" (source)
Mexico's industrial activity grew 5.1% in April, exceeding expectations after a previous decline. Construction and utilities led the surge, while manufacturing recovered. This increase was on a yearly basis, however monthly data showed a slight decrease. 1Y trend: "Side" (source)

Currencies

The dollar index rose to 105.3, its highest level in a month, as traders reduced expectations for a Fed rate cut. Following a strong jobs report, the chances of a rate cut in September fell to 52.6% from 66.9% the previous week. 1Y trend: "Up"

Commodities

Copper prices fell below $4.45 per pound in June, erasing May's record high of $5.20. Demand is weak, with Chinese imports of copper ore declining 7.1% year-on-year and inventories reaching their highest level since 2020. Despite this, prices are still 13% higher year-to-date due to speculation about looming shortages in the electrification industry. 1Y trend: "Up"