SVET Reports
Monday's Markets Update (November 4, 2024)
On Monday, equities fell amid a weakening manufacturing sector, with major tech stocks leading the decline as some traders exited the markets prior to the elections. However, after-hours trading presented a mixed picture. Palantir soared on strong earnings, while NXP Semiconductor plunged due to a weak outlook amid broader economic concerns. The dollar and gas prices fell, while gold rose as uncertainties continued to prevail. BTC (66K) and ETH (2.4K) are down but remain stable.
Details
Factory orders declined in September, continuing a downward trend. Both durable and non-durable goods sectors saw decreases, indicating a weakening manufacturing sector. This aligns with other economic indicators showing a slowdown. 1Y trend: "Side" (Census)
Crypto
Michigan's State Retirement System has diversified its crypto investments. It has increased its holdings in ETH ETFs, particularly Grayscale's ETH Trust and ETH Mini Trust. This move, especially after the recent SEC approval of BTC ETFs, signifies growing institutional interest in ETH. (source)
World Markets
The Eurozone manufacturing sector continued to contract in October, but at a slower pace than in previous months. While production, sales, and job losses decreased, the rate of decline slowed. However, business confidence reached a one-year low. 1Y trend: "Up" (PMI)
Currencies
The dollar weakened as polls showed a tighter presidential race. This eased concerns about inflationary policies and led investors to reduce positions benefiting from higher interest rates. The Fed is expected to cut rates on Thursday, balancing inflation and economic slowdown risks. 1Y trend: "Side"
Commodities
WTI crude oil futures rose 3% to $71.50 per barrel after OPEC+ postponed output increases by a month, extending cuts of 2.2M bpd into December due to falling prices and weak demand. Concerns about potential Iranian retaliation against Israel are also influencing the market. Attention is on the upcoming presidential, and economists expect a 25 bps interest rate cut from the Fed on Thursday amid China's plans for economic stimulus. 1Y trend: "Side"
Gold prices stabilized around $2,740 per ounce on Monday after two days of decline, supported by a weaker dollar as markets prepared for the presidential election and Fed decisions. Polls show a tight race, and the Fed is expected to announce a modest 25 bps interest rate cut this week, amid rising tensions in the Middle East boosting gold's safe-haven appeal. 1Y trend: "Up"
Natural gas prices dropped due to several factors: lower geopolitical tensions in the Middle East, record-high domestic production, and milder weather forecasts. These factors reduced demand and increased supply, leading to the price decline. 1Y trend: "Up"