Thursday's Markets Update (December 5, 2024)

06 Dec 2024 by rate3

On Thursday, equities closed lower as investors awaited the key November jobs report. While the S&P and Nasdaq declined slightly, tech stocks like Tesla and American Airlines saw gains. Jobless claims increased, and expectations for a Fed rate cut strengthened. Fresh EU construction data confirmed the worsening economy. International arrivals to Vietnam skyrocketed, driven by an inflow of tourists from all over the world, led by China and Russia. Construction PMI fell. BTC reached 100K for the first time in human history after Chinese traders joined the efforts on yesterday's evening session and then corrected sharply in the morning as traders engaged in 'selling the news.' ETH touched 4K and dropped like a rock to 3.4K, following BTC. The crypto market capitalization is nearing $4 trillion.

Details

Employers announced 57,727 job cuts in November, primarily driven by the automotive sector. This marks a year-to-date increase in job cuts, with challenges such as potential tariffs, competition from Chinese EV manufacturers, and leadership changes contributing to the automotive sector's struggles. 1Y trend: "Up" (CH)
Initial jobless claims rose to 224K in the week ending November 30. While this is an increase, the overall labor market remains strong. The four-week moving average rose slightly, but non-seasonally adjusted claims decreased. 1Y trend: "Up" (DOL)
The trade deficit narrowed to $73.8B in October, as both exports and imports declined. Exports decreased due to lower sales of industrial supplies and consumer goods, while imports fell for items like computers, automobiles, and crude oil. The deficit narrowed with major trading partners like China, Mexico, Canada, and the EU. 1Y trend: "Down, Increasing" (BEA)
International arrivals to Vietnam surged 38.8% YoY in November, reaching a five-year high. Visitors from Asia (mainly led by China (68%), South Korea (26%), Japan (21.4%), and Taiwan (25.5%)), America (specifically from the US (16.5%)), Europe (particularly from Russia (89.1%), the UK (20.3%), and France (30.4%)), Australia, and Africa all increased. 1Y trend: "Up" (GSO)

Crypto

The total cryptocurrency market capitalization is nearing $4T, driven by BTC's surge past $100K. Increased institutional adoption and positive regulatory developments are fueling this growth.

World Markets

The Eurozone Construction PMI fell to 42.7 in November, indicating a worsening contraction in the sector. New orders declined sharply, leading to job cuts and reduced input buying. While cost pressures increased, business confidence remained subdued. 1Y trend: "Up" (PMI)
Euro Area retail sales increased 1.9% YoY in October, slightly above expectations. 1Y trend: "Up" (EU)
Spain's industrial production increased by 1.9% YoY in October, exceeding expectations. Capital goods output rebounded strongly, while growth in other sectors eased. 1Y trend: "Up" (ES)
The French Construction PMI rose slightly to 43.7 in November 2024, but remained below the 50-point threshold, indicating continued contraction. While residential construction showed some improvement, commercial and civil engineering work declined. Input costs increased, and business confidence remained pessimistic. 1Y trend: "Up" (PMI)
The German Construction PMI fell to a 2.5-year low of 38 in November. Housing and commercial activity declined sharply, and new orders fell due to fewer opportunities and high prices. Input costs rose, but subcontractor rates declined. Employment continued to fall, and business sentiment worsened. 1Y trend: "Up" (PMI)
UK new car registrations fell 1.9% YoY in November. While electric vehicle registrations increased, sales of petrol and diesel vehicles declined. 1Y trend: "Down" (SMMT)