Tuesday's Markets Update (October 22, 2024)

23 Oct 2024 by rate3

On Tuesday, equities finished mostly flat, with the SP and Dow slightly down, while the Nasdaq rose. Concerns over interest rates and mixed earnings results persisted. Treasury yields reached a high of 4.22% before easing, reflecting traders' reassessment of the Fed's future actions. Key stock movements included General Motors rising, while Verizon and Lockheed Martin fell. Investors are monitoring upcoming earnings from Tesla, Coca-Cola, and Honeywell. The IMF reduced its global growth forecast to 3.2%. BTC continued to correct, reaching 67K, while ETH remained at 2.6K.

Details

The Richmond Fed Manufacturing Index was -14, showing less pessimism than September's -21 but marking a year of negative activity. New orders declined at a slower rate (-17 vs -23), while shipments fell (-8 vs -18) and backlogs decreased (-14 vs -16). Capital expenditures and employment continued to drop, though wages increased slightly (16 vs 15). Input costs slowed down (2.7 vs 3.4), but output prices rose more sharply (1.7 vs 1.6). 1Y trend: "Down" (Rich)

World Markets

The International Monetary Fund reduced its 2025 global growth forecast to 3.2%, down 0.1 percentage points from July, while keeping this year's estimate steady at 3.2%. The IMF cited rising risks from conflicts and trade protectionism but commended central banks for managing inflation. US GDP is now projected to grow 2.8% in 2024, up from 2.6%. The Euro Area's growth forecast fell to 0.8%, while China's and Japan's forecasts were also lowered. The UK’s GDP estimate increased to 1.1%, and India's remains at 7%. 1Y trend: "Side"

Commodities

Newcastle coal futures are currently at $145 per tonne, down from a one-year high of $153 on October 7th, as strong domestic supply and alternative energy sources temporarily reduced demand for thermal coal. China's coal output rose 4.4% in September, supported by increased production capacity after safety inspections ended. Despite economic concerns, thermal power generation in China increased nearly 10% YoY, with imports hitting a record 47.6 million tonnes, keeping futures 27% above March's low. 1Y trend: "Up"