SVET Reports
Friday's Markets Update (July 12, 2024)
On Friday, stocks recovered on technicals, closing near record highs. Hopes for a rate cut, boosted by the latest economic data, are mixed with fears of significant overbought markets, especially in big tech. The Dow continued to rally, closing above 40000 again. Internationally, Indian industrial production surged unexpectedly. BTC and ETH oscillated near two-month lows as traders remain uncertain about economics and politics.
Details
Core producer prices surged 3% YoY in June, exceeding forecasts and marking the highest jump since April 2023. 1Y trend: "Down" (source)
Michigan Consumer confidence dropped again in July, hitting a 7-month low of 66. This is the fourth month in a row of decline. People are worried about inflation and the upcoming election. Even expectations for future inflation are down slightly. 1Y trend: "Up" (SCA)
Crypto
Germany sold a big chunk of its BTC (down to 6,894 BTC). El Salvador keeps buying (now at 5,808 BTC) and could soon have more BTC than Germany if Germany keeps selling. (source)
World Markets
India's industrial production in May exceeded expectations, surging 5.9% YoY. This is the highest growth since October 2023. Manufacturing, especially pharmaceuticals and metals, led the increase. Output also grew in mining and electricity. 1Y trend: "Side" (Mospi)
Brazilian industrial confidence index (ICEI) falls to 14-month low in July, reflecting pessimism about the economy. 1Y trend: "Side" (source)
Currencies
The South Korean won weakened to 1.38 due to rising global tensions. South Korea is taking a strong stance against North Korea with new laser weapons and is maintaining high interest rates to fight inflation. However, the central bank might cut rates later this year to align with the Fed. 1Y trend: "Up"
On Week 29, big companies like GS and Netflix report earnings, while the Fed and China's economic data are in focus. Inflation, unemployment, and trade figures will be released globally, with consumer confidence data coming from the UK.