Thursday's Markets Update (August 8, 2024)

08 Aug 2024 by rate3

On Thursday, stocks continued to recover, fueled by better-than-expected jobless claims data. Tech and chip stocks led the gains, with Nvidia, Broadcom, and AMD soaring. In global markets, indexes were in the green in the EU, Latin America, and Africa, while most were in the red in Asia. South Africa's manufacturing sector shrank, and Argentina's industrial production plummeted by more than 20%. BTC outperformed ETH, jumping to $60K, while the latter still lingers around $2.5K.

Details

Jobless claims fell slightly to 230K but remain elevated, suggesting a cooling labor market. While still historically tight, the market has softened from its post-pandemic peak. Continuing claims rose, indicating more people are receiving benefits. 1Y trend: "Up" (DOL)
30-year mortgage rates plummeted to a 15-month low (6.47%), driven by recession fears and falling Treasury yields. This sparked renewed interest in homebuying and refinancing, as purchasing power increased and refinance applications surged. 1Y trend: "Side" (Fred)
Wholesale inventories increased in June, but at a slower pace than in May. Nondurable goods, especially petroleum, drove growth while durable goods, particularly computers, professional equipment, and metals, declined. Overall, inventory growth remains modest compared to the previous year. 1Y trend: "Up

Crypto

A new policy group proposes a BTC tax-free digital zone to boost the economy. The group aims to make the country a global crypto leader by attracting investors and businesses with tax breaks on BTC trading. This move is seen as a way to secure America's financial future. (source)

World Markets

The Reserve Bank of India holds interest rates steady at 6.5%, aligning with market expectations. Inflation rose to 5.08% but remains within target. Economic growth forecast unchanged at 7.2% for the year. RBI maintains cautious stance on inflation, revising projections upward for upcoming quarters. 1Y trend: "Side" (RBI)
South Africa's manufacturing sector is in decline (-5.2% YoY), with production falling sharply for the second consecutive month. Key industries like metals, motor vehicles, and food production are struggling. The overall industrial output also contracted, defying expectations. 1Y trend: "Side" (ZA)
Mexico's inflation spiked in July to 5.57%, driven by soaring food prices. This is the fifth straight month of acceleration. While core inflation eased, overall prices rose faster than expected. 1Y trend: "Side" (MX)
Mexico's central bank unexpectedly cuts interest rates to 10.75% despite rising inflation. Economic growth remains weak, but core inflation eases. Peso weakens and bond yields rise amid global economic slowdown. Central bank aims to reach 3% inflation target by 2025. 1Y trend: "Side" (BM)
Argentina's industrial production plummeted 20.1% in June YoY. This is the sharpest decline since the peak in 2020. Overall, the country's industrial output has been volatile, with highs and lows over the past three decades. 1Y trend: "Down" (AR)