Wednesday's Markets Update (September 11, 2024)

12 Sep 2024 by rate3

On Wednesday, stocks rallied, led by tech stocks, as inflation eased. The S&P and Nasdaq surged, with chipmakers driving the gains. However, core inflation rose, suggesting a smaller Fed rate cut. Internationally, the British economy stagnated for the second month in a row as Chinese stocks approached their yearly lows. Meanwhile, BTC and ETH continued to dip after Trump's lackluster performance during the debate.

Details

Inflation slowed in August to a 3-year low of 2.5% (from 2.9). Energy prices fell, while food and transportation inflation eased. However, shelter costs rose. Core inflation remained steady, but monthly core inflation increased slightly. 1Y trend: "Down" (BLS)

Crypto

Polymarket experienced significant changes in the betting odds for the upcoming election between Donald Trump and Kamala Harris following their recent debate. Trump's odds dropped from 52% to 49%, while Harris’s rose from 47% to 50%, giving her a brief lead. The odds eventually evened to 49% each, with Trump slightly regaining a 50% lead. This shift also caused a flash crash in Trump-themed tokens, with some losing up to 30% in value. (source)

World Markets

The British economy stagnated (0%) in July for the second consecutive month, falling short of expectations. The services sector grew slightly, while manufacturing and construction declined. Despite this, the economy expanded by 0.5% over the three months to July. 1Y trend: "Up" (UK)
Argentina's consumer prices rose by 4.2%, exceeding expectations (3.9%). While annual inflation eased to 236.7%, it remains high. Housing, transportation, and food costs rose more rapidly, while healthcare and restaurant prices increased at a slower pace. 1Y trend: "Up" (Indec)

Currencies

The Japanese yen strengthened to yearly highs (142) as interest rate differentials between Japan and the Fed widened. A Bank of Japan official indicated continued rate hikes to combat inflation. The Fed is expected to cut rates soon. Japanese manufacturing sentiment fell in September due to weak Chinese demand. 1Y trend: "Side"

Commodities

Crude oil prices rebounded after a sharp decline, driven by OPEC's reduced demand forecast and slowing Chinese imports. Inventories rose less than expected, but demand concerns remain due to electric vehicles and hurricane threats. 1Y trend: "Side"
Natural gas prices rose to a two-month high (2.27) due to increased demand, record LNG exports, and China's growing gas use. Despite record production, rising demand and potential supply disruptions could tighten the market and push prices higher. 1Y trend: "Side"