Friday's Markets Update (October 18, 2024)

19 Oct 2024 by rate3

On Friday, equities rose, fueled by strong tech performance. This week, the S&P 500 is up 0.2% and the Dow is up 1%. Gold reached a new ATH, while silver is at its highest in 12 years. BTC touched $69K and is set to make a new ATH, at last, while ETH, still at $2.6K, is lagging far behind.

Details

Building permits down (2.9%) in September, not fitting expectations. Regional decreases: Northeast (-13.1% to 126 thousand), the Midwest (-2.9% to 200 thousand), and the South (-6.1% to 765 thousand); Increases: the West (10.9% to 337 thousand). 1Y trend: "Down" (Census)

Crypto

AI meme coins are becoming a new trend in cryptocurrency, sparking conversations about institutional investment. The integration of AI into these coins is viewed as a potential advantage, though skepticism remains about the viability of many mid-tier projects.

World Markets

In August, Euro Area construction output fell 2.5% YoY. From 1996 to 2024, it averaged -0.2%, peaking at 44% in April 2021 and hitting a low of -31.1% in April 2020. 1Y trend: "Down" (EU)

Currencies

The euro is up ($1.086) and set for its 3-rd weekly decline as markets expect more cuts from the ECB. The bank has lowered rates three times this year, citing improved inflation control and weaker economic conditions. Lagarde's comments led to expectations of a 25 basis point cut at each meeting until mid-2025, with a December cut fully anticipated. In contrast, strong economic data has lowered expectations for aggressive Fed cuts. 1Y trend: "Up (Depreciating)"

Commodities

Silver prices rose to $33 per ounce, the highest in nearly 12 years, following gold's increase amid safe-haven demand due to US election uncertainty and Middle East tensions. Market forecasts favor Trump slightly against Harris. Positive data from China and the ECB's rate cut also influenced trading. 1Y trend: "Side"
Gold surged past $2,710 per ounce, hitting a record high due to strong demand for safe-haven assets and recent interest rate cuts by central banks. Tensions in the Middle East and concerns over China's economy further boosted prices, though US economic data tempered gains. 1Y trend: "Side"
WTI crude oil down 2% ($69.2) - the biggest since early September (-8%). This was due to lower demand, slowing China and signs of easing in the Middle East. 1Y trend: "Side"

On Week 43, the earnings season brings Tesla, Coca-Cola, 3M, General Motors, and Verizon releasing quarterly reports. Also, PMI data, durable goods orders, and home sales reports will be featured. Investors will also watch Germany's Ifo index and confidence figures for various countries, along with PMI data for Australia, Japan, India, France, Germany, and the UK. Canada will focus on the Bank of Canada's interest rate decision and retail sales. Additionally, South Korea will release its Q3 GDP growth rate.