Monday's Markets Update (August 26, 2024)

27 Aug 2024 by rate3

On Monday, stocks were mixed, with the Dow hitting a record high while tech stocks fell. Investors anticipate rate cuts and focus on Nvidia's earnings. Durable goods orders rebounded to four-years-high. Internationally, dollar hit its yearly lows as gold and oil surged on Powell's dovish comments and Middle East tensions, again. BTC and ETH declined slightly after hitting their 200 MA.

Details

Manufacturing orders rebounded strongly (+9.9%, the most in 4 years) in July, driven by transportation equipment including defense aircrafts. Overall orders excluding transportation declined slightly. The data challenges recent pessimism about the manufacturing sector. 1Y trend: "Side" (Census)

Crypto

The arrest of Telegram CEO Pavel Durov in France has sparked a worldwide discussion on digital rights, with some criticizing it as an attack on free speech and privacy. Prominent figures have condemned the action, prompting Macron to deny personal involvement, arguing that the arrest is part of a judicial investigation, not a political decision. (source)

World Markets

Nigeria's economy grew faster in Q2, driven by increased oil output. Non-oil sectors also grew steadily. However, quarterly GDP was nearly flat due to a sharp decline in the previous quarter. 1Y trend: "Up" (NS)
The Ifo Business Climate index in Germany fell to its lowest level in six months in August, indicating a worsening economic outlook. Companies are more pessimistic about the current situation and future prospects. 1Y trend: "Side" (IFO)

Currencies

The dollar weakened to 13-months low after Powell hinted at rate cuts. Markets are now expecting a 25 basis point cut in September. The euro and sterling strengthened against the dollar as central banks in Europe and Japan signaled potential rate hikes. 1Y trend: "Side"

Commodities

Crude oil prices jumped on Monday due to Middle East tensions and expectations of lower interest rates. Rising tensions in Middle East have raised concerns about oil supply disruptions. The Fed's potential rate cuts have boosted market sentiment, though concerns about weak energy demand persist. 1Y trend: "Side"
Gold hit a new record high as investors bet on Fed rate cuts. Powell signaled a shift in Fed policy, emphasizing job market risks and inflation decline. Markets are split on the size of the September cut but expect multiple cuts this year. Rising geopolitical tensions also supported gold's safe-haven appeal. 1Y trend: "Up"