Monday's Markets Update (November 25, 2024)

26 Nov 2024 by rate3

On Monday, equities were mixed as economy continued to slow down, as reflected in the decline of manufacturing indexes. Investors welcomed Bessent's nomination, anticipating the Treasury's market-friendly policies. Retail stocks like Macy's and Bath & Body Works saw significant movements. The market is expected to be less active due to the Thanksgiving holiday. The German economy is sliding down, while the Nigerian economy continues to accelerate, with the financial and banking sector expanded by 30%. BTC stumbled and eased to $95K as investors took profits and relocated some assets into secondary coins, leading to ETH's continued rise, reaching $3.6K.

Details

The Chicago Fed National Activity Index declined to -0.40 in October 2024, indicating a weakening economy. This was driven by declines in production, employment, and personal consumption. 1Y trend: "Side" (CFed)
The Dallas Fed Manufacturing Index improved slightly to -2.7 in November, indicating a slightly less severe contraction in Texas manufacturing activity. While the outlook for the future improved, current conditions remain weak, with declining production, new orders, and shipments. Labor market conditions were mixed, and input and output price pressures remained elevated. 1Y trend: "Up" (DFed)
The MOEX Russia index fell to a near-year low of 2,530, driven by geopolitical tensions, capital controls, high interest rates, and weak demand from key trading partners. Russia's escalating conflict with Ukraine and China's slowing economy have negatively impacted the performance of Russian stocks, particularly in the energy and banking sectors. 1Y trend: "Down"

Crypto

Cardano (ADA) has seen a significant price surge, tripling its market capitalization to $37.4 billion in just 17 days. This is driven by several factors, including increased regulatory clarity efforts led by Hoskinson, the integration with BTC through the BitcoinOS Grail Bridge, and the relisting on Robinhood, expanding its accessibility to retail investors. Cardano's growing DeFi ecosystem, with a record-high TVL, further contributes to its positive momentum. (source)

World Markets

The Ifo Business Climate Index for Germany fell to 85.7 in November, indicating a decline in business sentiment. Both current conditions and business expectations worsened. The manufacturing sector experienced a decline, while the services sector showed a sharp drop in sentiment. The retail sector showed some improvement, but overall business confidence remains low. 1Y trend: "Down" (Ifo)
Brazil's consumer confidence index rose to a one-year high in November. Improved consumer expectations boosted the overall index. This positive sentiment could allow the central bank to maintain its current monetary policy stance. 1Y trend: "Up" (source)
Nigeria's economy grew by 3.46% YoY in Q3, accelerating from the previous quarter. The non-oil sector, particularly financial services (+30%), was the main driver of growth. The oil sector also saw an increase, but at a slower pace than the previous quarter. The economy expanded by 10% QoQ, marking a significant rebound. 1Y trend: "Up" (NG)

Currencies

The dollar index fell, retreating from recent highs. The appointment of Scott Bessent as Treasury Secretary eased market concerns about potential economic instability. The dollar weakened against major currencies like the euro, pound, Australian dollar, and yen. Investors are now looking towards upcoming economic data releases and Fed meeting minutes for further guidance on interest rate policy. 1Y trend: "Side"

Commodities

Wheat futures declined towards a 10-week low due to ample global supplies. Favorable weather conditions in the US and France have improved crop prospects. While the International Grains Council lowered its global wheat production forecast, concerns about potential disruptions to Black Sea exports from the ongoing Ukraine-Russia conflict continue to provide some support for prices. 1Y trend: "Side"