Wednesday's Markets Update (October 23, 2024)

24 Oct 2024 by rate3

On Wednesday, equities declined, with the Dow and S&P falling about one percent, and the Nasdaq decreasing by about two percent. Rising Treasury yields affected stocks as the Q3 earnings season progressed and cautious outlook from Fed officials. Consumer confidence in the EU rose. Japan's manufacturing decreased for four consecutive months. BTC rebounded marginally after three red days, while ETH continued to oscillate in a narrow range between 2.5K and 2.7K, averaging 2.6K for about three months.

Details

Existing home sales fell 1% to an annualized rate of 3.84 million, the lowest since October 2010, and below forecasts. Sales decreased in the Northeast, Midwest, and South, while the West saw a 4.1% rise. The median home price dropped to $404,500 from $414,200. 1Y trend: "Down" (NAR)
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances in the US held steady at 6.52%, near two-month highs. After hitting a two-year low of 6.13% in September, mortgage rates have increased recently due to rising Treasury yields. 1Y trend: "Down" (MBA)

World Markets

Consumer confidence in the Euro Area rose by 0.4 points to -12.5 in October 2024, the highest level since February 2022, but still below the long-term average. 1Y trend: "Up" (EU)
The au Jibun Bank Japan Manufacturing PMI dropped to 49.0 in October 2024, down from 49.7 in September and below the forecast of 49.9. This marks four consecutive months of contraction and the strongest decline since March. Output and new orders also shrank significantly, with exports experiencing faster declines. Employment fell for the first time since February, and purchasing decreased for the first time in three months. Business sentiment hit a 2.5-year low, with mixed signs on inflation. 1Y trend: "Up"
The Bank of Canada reduced its key interest rate by 50 basis points to 3.75% in October 2024, signaling more cuts if the economy follows expected trends. This move follows three previous 25 basis point reductions, responding to a significant slowdown in inflation, which fell to 1.6% in September, below the 2% target. The bank noted a slowdown in consumption and a rise in the unemployment rate above 6.5%. It anticipates GDP growth of 1.2% this year and 2.1% next year. 1Y trend: "Down"

Commodities

Aluminum futures climbed to $2,660 per tonne, nearing the four-month high of $2,685 from October 2nd, despite declines in other base metals. Steady demand and rising supply concerns, particularly from China’s slowing factory output, helped stabilize aluminum prices, which are vital for electric vehicles and solar panels. Aluminum stocks at Chinese ports fell by 20% since March. Meanwhile, bauxite prices surged as Guinea ceased exports, further tightening supply for Chinese smelters amid decreased output from Australia and Jamaica. 1Y trend: "Up"