Thursday's Markets Update (November 28, 2024)

29 Nov 2024 by rate3

On Thursday, markets are closed for Thanksgiving. EU economic indicators continue to worsen as Brussels bureaucrats pump the money supply to an all-time high, while Brazilian equities dipped due to the government's increase in taxes. Chinese stocks fell on expectations of restrictions on chip imports. BTC lost some momentum and didn't rise above 95K, while ETH corrected slightly to 3.5K. Overall, crypto markets are waiting for a catalyst to push further up into the 'New Year rally."

Crypto

The Financial Stability Board (FSB) has identified JPMorgan Chase as the world's sole "too big to fail" bank, placing it in "bucket 4," which requires an additional 2.5% equity of its risk-weighted assets. Meanwhile, Bank of America has been downgraded from bucket 3 to bucket 2, lowering its capital requirement from 2.0% to 1.5%. Established to monitor global systemically important banks post-2008 financial crisis, the FSB highlights the ongoing regulatory framework initiated to stabilize large financial institutions. (source)

World Markets

Spain's annual inflation rate rose to 2.4% in November, 3-rd month in a row, driven by higher energy prices. Core inflation eased slightly. Monthly inflation slowed, and EU-harmonized inflation remained stable. 1Y trend: "Side" (ES)
The Euro Area's M3 money supply increased by 3.4% YoY in October, reaching a record high of 16.577T. This marks an acceleration from the previous month's growth. 1Y trend: "Up". The Euro Area Economic Sentiment Indicator increased slightly in November. While confidence in industry and retail trade improved, it declined in services and consumer sectors. Germany and Italy saw a decrease in sentiment, while other major economies experienced improvement. 1Y trend: "Side". Consumer confidence in the Euro Area declined in November, reaching a five-month low. Consumers have a pessimistic outlook on the overall economy and their personal finances. While their past financial situation is stable, future expectations are weak. However, there's a slight improvement in major purchase intentions. 1Y trend: "Up" (EU)
The Ibovespa fell 2.4%, reaching a multi-month low. Investors reacted negatively to Brazil's new fiscal package, which raised concerns about its impact on the budget deficit and economic growth. Financial stocks and other sectors were significantly impacted by the news. 1Y trend: "Side"
Chinese stocks fell, with the Shanghai Composite and Shenzhen Component declining. Increased US-China trade tensions and potential US semiconductor export restrictions dampened investor sentiment, especially in the technology sector. 1Y trend: "Side"