Wednesday's Markets Update (June 26, 2024)

27 Jun 2024 by rate3

On Wednesday, stocks closed slightly higher ahead of an economic report. Amazon and Tesla rose, while Nvidia remained volatile. In global markets, French stocks are down due to Le Pen's projected win, and the Japanese yen depreciated to 1986 levels. BTC and ETH are holding their levels at 61K and 3.3K, respectively, after Monday's plunge and a slight rebound.

Details

New single-family home sales dropped 11.3% in May, reaching an annualized rate of 619K. High prices and mortgage rates are affecting affordability. Sales fell across all regions, with the Northeast experiencing the largest decline. The median price was $417.4K, lower than last year's $421,200, while the average price was $520,000. There were 481K homes listed for sale, representing a 9.3-month supply. 1Y trend: "Up" (Census)
Building permits fell 2.8% to 1.399 million in May, the lowest since June 2020. Multi-family permits dropped 5.2% to a 10-year low, while single-family permits decreased 2.1% to a 10-month low. Permits declined in the Northeast and South, but increased in the Midwest and West. The total number of permits was revised higher than initially reported. 1Y trend: "Up" (Census)

Crypto

NFT trading plunged 45% in Q2 to $4.1B, despite a Q1 rise. Wash trading, where investors inflate prices, is a major concern, making up over half of all NFT transactions. (source)

World Markets

French stocks (CAC 40) are down as worries rise about the upcoming election. Polls suggest Le Pen might win, but without a majority, forcing a coalition with Macron. 1Y trend: "Up"
France's unemployment spiked in May, adding 2.8 thousand jobs. The jobless rate is now 2.8 million. This is misleading information though, as the unemployment rate (2.8 million) is the total number of unemployed people, not the increase in unemployment. The monthly increase was 40.9 thousand. 1Y trend: "Down"
Russia's industrial sector surged 5.3% in May, exceeding forecasts (2.5%) and accelerating from April's growth (3.5%). Manufacturing led the way (9.1%), offsetting a slight decline in mining (-0.3%). 1Y trend: "Up" (RS)

Currencies

The Euro fell near a two-month low on expectations of more ECB rate cuts and weak economic data from Europe. Investors are also cautious ahead of key inflation reports and the French election, which could cause market swings depending on the outcome. 1Y trend: "Side"
The Mexican peso is weakening beyond 18.2, nearing a 15-month low. This is due to a stronger dollar and investor wait-and-see approach before Mexico's central bank meeting. Despite high inflation, Mexico's economic activity is supporting the peso somewhat. 1Y trend: "Up"
The Brazilian real hit a new low (5.5) in June due to high inflation and a strong dollar. Inflation above 4% raised concerns about government spending and its impact on prices. This could prevent the central bank from raising interest rates to fight inflation. Additionally, weaker demand from China and lower commodity prices hurt Brazil's export forecast. 1Y trend: "Up"
The Indian rupee hit a new low near 83.6 per USD due to a broad weakness in Asian currencies and a stronger dollar. China's weakening economy added pressure. Despite India's strong growth outlook, the RBI couldn't intervene heavily to support the rupee as it risked hurting exports. 1Y trend: "Up"
The Japanese yen hit a 38-year low against the US dollar, pressured by the Bank of Japan's easy money policy compared to the Federal Reserve. Despite warnings and intervention efforts, the yen continues to weaken, raising concerns for Japan's economy. 1Y trend: "Up"