Friday's Markets Update (August 9, 2024)

09 Aug 2024 by rate3

On Friday, stocks rose marginally, with no major economic reports or earnings announcements. Notable movers included Expedia, which surged nearly 9% after strong earnings. Globally, China's inflation increased, driven by Beijing's stimulus efforts, while its vehicle sales fell. BTC reversed its gains slightly after a record surge the previous day, remaining above 60K, while ETH continued to linger around 2.5K.

Crypto

In a Zoom meeting 20 crypto industry executives - DEM supporters - confronted White House officials regarding the Fed and SEC's stringent regulations. The discussions aimed to shape future crypto policies amid a tough crackdown by the Biden administration. While an adviser to Kamala Harris, was present, she chose to remain silent during the discussion. (source)

World Markets

Turkey's industrial production plummeted 4.7% in June, marking the third straight decline. Manufacturing led the drop, while mining and energy sectors grew. This contraction is the steepest since early 2023. 1Y trend: "Side" (TSI)
Italy's annual inflation rose to 1.3% in July, up from 0.8% in June. Prices increased for food, drinks, clothing, and services like restaurants and hotels. However, inflation eased for housing, utilities, and communications. Monthly inflation reached 0.4%. 1Y trend: "Down" (IST)
Brazil's inflation rose for the third straight month in July, reaching 4.5%. This is near the central bank's target but sparks concerns about rising prices. Housing and transportation costs increased, while food prices eased slightly. 1Y trend: "Side" (IBGE)
In July, China's vehicle sales fell 5.2% year-on-year to 2.49 million units, a larger decline than the previous month's 2.7%. However, new energy vehicle sales surged by 27%. To address the downturn, the Chinese government announced cash subsidies for vehicle purchases would be doubled to CNY 20,000, retroactive to April. From January to July, vehicle sales rose 4.4%, a slowdown from 7.9% in the same period of 2023, aided by a 31.1% increase in new energy vehicles. 1Y trend: "Up" (CAAM)
In July, China's inflation rate rose to 0.5% from 0.2% in June, surpassing the expected 0.3% and marking the highest level since February. This increase followed six consecutive months of consumer inflation rise, driven by Beijing's stimulus efforts. Food prices stabilized after a year of declines, while non-food prices continued to rise. Core consumer prices, excluding food and energy, rose by 0.4% year-on-year, the smallest increase in six months. The CPI also saw its first monthly gain since April. 1Y trend: "Side (CST)

Currencies

The British pound rose to $1.276, but is still set to decline for the fourth consecutive week, its longest losing streak since September. The Bank of England's interest rate cut and potential for further cuts have put pressure on the pound. Weak US economic data and UK unrest have also weighed on the currency, causing market uncertainty and fears of more rate cuts. 1Y trend: "Up"

On Week 33, investor's focus will be on inflation, Fed speeches, and retail trends. Europe releases key economic indicators like GDP and inflation. Asia reports on growth, inflation, and consumer sentiment. Central banks in New Zealand, Philippines, and Norway set interest rates.