SVET Reports
Friday's Markets Update (September 6, 2024)
On Friday, stocks plunged due to concerns about a weakening labor market and tech sell-off. Major tech companies and chipmakers suffered significant downside. The August jobs report and Fed comments further fueled market anxiety, leading to the worst weekly performance since early 2023. Globally, oil dropped to its yearly lows on global economy slowdown concerns. BTC and ETH were followed stocks preparing to test 50K and 2.0K, correspondingly, again. That is added by Ethereum Fundation starting to selling ETH in unseen earlier volumes.
Details
The unemployment rate decreased to 4.2% in August from 4.3% in a prior month, matching expectations. The number of unemployed people remained stable, with a slight decrease in temporary layoffs. Long-term unemployment persisted, accounting for over 20% of the unemployed. 1Y trend: "Up" (BLS)
Crypto
The Ethereum Foundation has substantial ETH reserves ($650 million worth of funds) but has been selling some (1K ETH just today) to fund operations and support the ecosystem (~100M USD yearly). This has caused controversy within the community. Vitalik has also been selling Starknet tokens for similar reasons. (source)
World Markets
The FAO Food Price Index declined in August, primarily due to lower cereal and sugar prices. Wheat prices fell amid weak demand and increased competition from Black Sea exports. Sugar prices dropped due to improved production prospects. Meat prices also decreased slightly. However, vegetable oil prices rose due to higher palm oil costs. Dairy prices increased due to strong import demand and limited supplies. 1Y trend: "Side" (FAO)
Commodities
WTI crude oil prices fell sharply this week due to OPEC+ delaying production increases, weak economic data in China and the U.S., and potential supply increases from Libya. However, a significant drop in U.S. oil inventories provided some support. Overall, oil prices experienced their worst weekly decline in months. 1Y trend: "Side"
On Week 37, global investors will be closely watching local inflation data as well as that from Euro Area, China, Mexico, Brazil, Russia, and India. Other important releases include ECB interest rate decision as well as trade data, consumer confidence surveys, GDP growth, and unemployment rates in various countries.