Tuesday's Markets Update (August 20, 2024)

21 Aug 2024 by rate3

On Tuesday, stocks fell, after breaking a 20-year record streak of higher highs, as investors await clues from the Fed regarding rate cuts. Tech and consumer stocks led the gains, while energy and materials declined. Internationally, inflation in the Eurozone rose unexpectedly, and gold reached a new ATH as global investors face increased economic and political risks. BTC and ETH remain unchanged, staying within their ranges of $59K-$60K and $2.5K-$2.6K, respectively.

World Markets

Eurozone inflation rose to 2.6% in July, exceeding expectations. Energy and non-energy industrial goods prices surged, while food inflation eased slightly. Core inflation held steady at 2.9%. France and Germany saw higher inflation compared to Italy. (Eurostat)
China kept interest rates unchanged, despite earlier cuts. The central bank is shifting focus from quantitative targets to interest rate tools to stimulate the economy. This follows recent comments about avoiding drastic measures. 1Y trend: "Down"
Commodities

Gold prices hit a new record high as investors anticipate interest rate cuts from major central banks. Slower inflation fuels expectations of Fed rate reductions, while other central banks, including the ECB, BoE, and Riksbank, also signal easing monetary policy. Global economic uncertainties and geopolitical tensions boost gold's safe-haven appeal. 1Y trend: "Up"
Oil prices steadied after a sharp drop, driven by hopes for a Middle East ceasefire and rising Libyan production. However, concerns about China's economy and potential US interest rate cuts are weighing on prices. 1Y trend: "Up"