Tuesday's Markets Update (September 24, 2024)

25 Sep 2024 by rate3

On Tuesday, markets edged up, lifted by Nvidia's surge, despite consumer confidence dipping to a 3-year low and the Richmond manufacturing sector dropping to its lowest level since May 2020. Internationally, Chinese stocks skyrocketed thanks to lavish CCP stimulus. Silver prices also soared over 5%, catching up to gold as investors look for a safe haven. BTC and ETH remain largely unchanged, continuing to demonstrate some upward potential.

Details

The manufacturing sector in the Richmond 5th District contracted further in September. It is the steepest decline since May 2020, with shipments, employment, and new orders all declining. However, firms remained optimistic about future prospects, expecting improvements in shipments and new orders in the coming months. Prices paid increased while prices received decreased slightly. 1Y trend: "Down" (RFed)
Home prices rose 5.9% in July, slowing from June but still above 5% for the ninth straight month. New York, Las Vegas, and San Diego saw the biggest increases, while Portland and Denver had the slowest growth. 1Y trend: "Up" (SP)

Crypto

The crypto exchange Exodus donated $1.3M to Stand With Crypto (SWC), a crypto advocacy group, to support their efforts in the upcoming elections. SWC has endorsed 21 candidates and believes that this year's election is crucial for the future of crypto. With this donation, the total donations to SWC reached $2.79 million. (source)

World Markets

The PBoC has taken several drastic steps to stimulate the economy, including cutting interest rates and reserve requirements. These measures aim to boost lending, lower borrowing costs, and increase investment. The central bank hopes to achieve the government's growth target of around 5% despite recent economic weakness.

Currencies

The Chinese yuan appreciated to 16-month-low after the People's Bank of China announced a series of stimulus measures. These measures included interest rate cuts and reductions in reserve requirements. This economic boost is expected to help China achieve its 5% GDP growth target for 2024. 1Y trend: "Down (Strengthened)"

Commodities

Silver prices soared over 5%, reaching levels not seen since May. This spike was driven by rising tensions in the Middle East and expectations of further US interest rate cuts. Investors sought safe-haven assets like silver amid fears of a renewed Iran-Israel conflict and China's economic stimulus measures. 1Y trend: "Up"