Thursday's Markets Update (June 27, 2024)

27 Jun 2024 by rate3

On Thursday, stocks edged higher, propelled by sluggish economic growth data and lower bond yields on hopes of future rate cuts. The consumer discretionary and communication services sectors led gains, while staples and financials lagged. In global markets, the EU's economic sentiment indicator declined, and steel prices reached a two-month low due to China's construction slowdown. BTC and ETH moved up slightly, while key coins such as Solana, Polkadot, and Avalanche jumped by more than 8%.

Details

Q1 GDP grew 1.4% - the lowest growth since the first half of 2022 - with slow consumer spending (1.5%). Investment rose (4.4% non-residential), exports grew faster than expected (1.6%), and imports were revised lower (6.1%). 1Y trend: "Down" (BEA)
Durable goods orders edged up 0.1% in May, defying expectations of a decline. This four-month growth streak was fueled by strong demand for transportation equipment (up 0.6%) and computers (up 1.3%). However, orders for business investment (excluding aircraft) fell 0.6%, suggesting some caution from companies. 1Y trend: "Side" (Census)
Jobless claims dipped to 233K (down from 243K), but remain high compared to this year. This suggests a slight easing in the tight labor market, though it's still tougher for unemployed workers to find jobs. 1Y trend: "Up" (DOL)
Pending Home Sales dropped 6.6% YoY in May, showing a slight improvement from the previous month's decline. This follows a long-term average of a small decrease but remains below the peak in April 2021. 1Y trend: "Up" (NAR)
Manufacturing activity weakened in June. The Kansas Fed Index dropped to -8, down from -2 in May. This is still above the historic low of -30 in April 2020, but lower than the average of the past few decades. 1Y trend: "Side" (KFed)

Crypto

Hackers switched targets in Q2 2024, focusing on centralized finance (CeFi) which suffered a massive 984% increase in stolen funds, while DeFi's ones decreased by 25%. (source)

World Markets

The Euro Area's economic sentiment indicator fell to 95.9 in June, missing forecasts. Businesses across various sectors, including services, industry, retail, and construction, reported worsening sentiment, driven by concerns over demand and inventory levels. Consumer confidence also weakened slightly. However, expectations for selling prices improved in some sectors, including construction and retail. 1Y trend: "Down" (EC)
The French stock market (CAC 40) is down for a third day (7,531). Inflation worries ahead of key reports and the upcoming France elections continue to weigh on investors, 1Y trend: "Up"
Spain's retail trade grew 0.2% YoY in May, slower than the 0.3% growth in April. Non-food spending rose 2%, up from 1.1% in April, while food spending decreased 0.6%, following a small increase in April. On a monthly basis, retail sales fell 0.6% in May, after a 0.8% rise in April. 1Y trend: "Side" (INE)

Commodities

Steel rebar prices in China plunged to a two-month low (CNY 3,360) due to worries about a construction slowdown. Falling home prices, slumping developer sales, and weak government efforts to boost the market all point to lower demand for steel, a key metal in construction. 1Y trend: "Down"