Thursday's Markets Update (September 12, 2024)

13 Sep 2024 by rate3

On Thursday, stocks continued to rise, fueled by strong performance in the tech and semiconductor sectors. Economic data, including the PPI, showed signs of easing inflation, supporting expectations for a 25-point rate cut by the Fed. Globally, gold reached a new ATH, while silver surged due to China's revised green technology prospects. BTC and ETH remained at 58K and 2.3K, respectively, suppressed by political uncertainties.

Details

Factory gate prices (PPI) rose slightly in August (0.2%), driven by increases in services costs, particularly guestroom rentals. While goods prices remained unchanged, there were mixed trends within the category. Overall, producer price inflation slowed year-over-year, but core inflation increased to 2.4% from previous 2.3% while 2.5% was expected. 1Y trend: "Side"
The budget deficit soared to $380 billion in August 2024 - biggest in nearly 2 years - reversing previous year's surplus. Spending surged due to increased Medicare and Social Security costs, while revenue grew at a slower pace. The yearly deficit reached $1.897 trillion, with interest payments exceeding $1 trillion for the first time. 1Y trend: "Down (deficit is growing)" (GOV)

Crypto

India has maintained its top position in global crypto adoption, despite strict regulations. Nigeria and Indonesia have also shown significant growth. The US, despite increased media attention, has fallen to fourth place. (source)

World Markets

The ECB lowered interest rates by 25 basis points to 3.5%. Inflation projections remain unchanged, but core inflation is expected to decline. The ECB remains committed to achieving its 2% inflation target, adjusting rates as needed. Domestic inflation pressures are elevated but are being moderated. 1Y trend: "Up" (ECB)

Commodities

Gold prices surged to a new record high (2561), driven by expectations of a Fed rate cut and signs of a slowing economy. Jobless claims rose slightly, while producer prices increased moderately. The ECB also cut rates, reflecting confidence in declining inflation. 1Y trend: "Up"
Silver prices surged on Thursday due to expectations of rate cuts by major central banks. The ECB recently lowered rates, and markets anticipate the Fed to follow suit. Also some traders are re-evaluating China's demand for silver in renewable energy. 1Y trend: "Up"