Friday's Markets Update (December 6, 2024)

07 Dec 2024 by rate3

On Friday, equities rose, with the S&P and Nasdaq setting new records. A stronger-than-expected jobs report for November increased expectations of a Fed rate cut. Tech stocks led the rally, while healthcare stocks declined due to the death of a major industry executive. The unemployment rate increased to the second highest level in three years, while consumer sentiment reached a five-month high, continuing to confuse bears. The EU GDP growth rate increased but remained below 1%. The world's food price index reached a ten-month high, driven by vegetable oil and dairy products. BTC rose above $100K again, with ETH surging above $4.1K and poised to challenge its ATH. Spot BTC ETFs have surpassed Satoshi's holdings.

Details

The unemployment rate rose to 4.2% in November - the second highest in 3 years - as the labor force participation rate declined. 1Y trend: "Up. The broader U-6 unemployment rate, which includes discouraged workers and underemployed individuals, rose to 7.8% in November. 1Y trend: "Up (BLS)
Consumer sentiment rose to a five-month high of 74 in December. Current conditions improved significantly, driven by perceptions of favorable buying conditions for durables. However, future expectations declined slightly. Inflation expectations increased for the year ahead but decreased for the five-year outlook. 1Y trend: "Down. (SCA)

Crypto

Spot BTC ETFs have surpassed Satoshi Nakamoto as the world's largest Bitcoin holder, accumulating over 1.1 million BTC. This milestone highlights the growing institutional interest and adoption of BTC. (source)

World Markets

The FAO Food Price Index rose 0.5% in November, reaching a 10-month high. Vegetable oil prices surged, while dairy prices increased slightly. Cereal and sugar prices declined, and meat prices edged down. 1Y trend: "Up" (FAO)
The Eurozone GDP grew 0.9% YoY in Q3, marking the best performance since Q1 2023. 1Y trend: "Up" (ES)

Currencies

The Indian rupee remained near record lows around 84.6. The RBI maintained the key repo rate but lowered the cash reserve ratio to ease liquidity and support growth. Despite this, the rupee is pressured by a strong dollar and concerns over India's slowing economy. The central bank also lowered its GDP growth forecast and raised its inflation forecast. 1Y trend: "Up"

On Week 50, key economic indicators will be released globally. Inflation data will be published, while central banks in the Euro Area, Australia, Canada, Brazil, and Switzerland will announce their monetary policy decisions. Other key data releases include inflation figures from various countries, China's economic indicators, Germany's trade data, UK's GDP and industrial production, and Australia's labor report and business confidence. Japan will release the Tankan manufacturing index.