Monday's Market Update (June 17, 2024)

18 Jun 2024 by rate3

On Monday, stock markets climbed, with the S&P and Nasdaq hitting new records. Tech stocks led the gains, while investors awaited economic data and Fed speeches for clues on future interest rates. The NY Empire State Manufacturing Index showed some improvement but still indicated a slight decline in activity. Internationally, EU markets renewed their fall as oil prices hit a monthly high. BTC and ETH are holding their levels at 66K and 3.5K, respectively, after a week's downfall, while most of the crypto market continued to correct, with Solana, Polygon, and Algorand falling by 4% or more.

Details

The New York manufacturing sector showed signs of improvement in June, with a smaller decline in activity than previous months. While prices and new orders remained mostly flat, there's cautious optimism for the future as business conditions are expected to pick up in the coming months. Despite ongoing job losses, this is the most optimistic outlook in over two years. 1Y trend: "Down" (NYFed)

Crypto

The TON blockchain's total value locked (TVL) surged to $600 million, a 130% increase in a month. This growth is likely due to rising investor interest and popular mini apps like Notcoin, which has over 35M users. (source)

World Markets

European stocks erased most early gains. Worries about French elections and a potential far-right win overshadowed initial optimism. The broader European market ended flat, while Adidas shares plunged after bribery allegations emerged. 1Y trend: "Up"
China's new home prices are falling at the fastest pace in nearly a decade (by 3.9% YoY), despite government efforts. Prices dropped in 68 out of 70 major cities in May, with some cities like Guangzhou experiencing steeper declines than others. This marks the 11th straight month of decline, raising concerns about the effectiveness of China's real estate rescue plan. 1Y trend: "Down"

Currencies

The British pound is at a one-month low due to upcoming economic data and the Bank of England meeting. The Bank of England might cut interest rates despite inflation meeting their target. This comes amid political uncertainty as Prime Minister Sunak's party struggles in polls before the general election. 1Y trend: "Up"

Commodities

Gold prices fell to $2,320 per ounce despite a recent gain. This drop is likely due to rising interest rates and investor uncertainty about the Fed's plans. Upcoming economic data will be closely watched for clues about the Fed's next move. Weak demand in key markets like China also contributed to the price decline. 1Y trend: "Up"
Oil prices hit a six-week high at nearly $80.3 per barrel
, driven by hopes of summer demand despite economic jitters in China. The rise follows OPEC+ production cuts and Saudi Arabia's promise to manage supply. 1Y trend: "Up"
Aluminum prices fell below $2,500 per tonne in June, a two-month low. This drop mirrors a decline in other base metals due to weak demand and increased supply. Heavy rain in China boosted hydropower, allowing smelters to ramp up production and reach record highs in May. Despite some supply disruptions, overall output rose due to improved conditions in China and weak demand weighed on the market. 1Y trend: "Up"