Wednesday's Markets Update (December 11, 2024)

12 Dec 2024 by rate3

On Wednesday, the Dow declined, while the S&P rose and the Nasdaq reached a new ATH, boosted by a better-than-expected inflation report. Tech stocks, led by Alphabet, Tesla, and Nvidia, fueled the rally. The yuan fall on expectations that China may weaken its currency in response to potential tariffs. Argentina's inflation dropped to a yearly low due to Milei's libertarian reforms. BTC rose above 100K, while ETH reached 3.8K.

Details

Core inflation remained steady at 3.3% in November, meeting market expectations. While prices for services like shelter and transportation slowed, overall core inflation remained elevated. 1Y trend: "Down" Annual inflation rose to 2.7% in November, driven by higher food and energy prices. Overall inflation remains elevated. 1Y trend: "Down" (BLS)
The budget deficit for November reached $367B, a 17% increase from the previous year. This was largely due to calendar adjustments and increased government spending. The cumulative deficit for the fiscal year so far is a record high of $624B. 1Y trend: "Down, Increasing" (TR)

Crypto

Florida's $185.7B pension fund is set to invest $1.85B in BTC, aiming to be a leader in cryptocurrency adoption. This move, backed by state leaders and the Florida Blockchain Business Association, could pave the way for wider use of digital assets in state financial planning. The potential for an additional $1.16B investment from the state's surplus further strengthens Florida's commitment to BTC. (source)

World Markets

Argentina's annual inflation rate decreased to 166% in November (a yearly low), down from 193% in October. While this marks a decline, inflation remains at historically high levels. 1Y trend: "Side" (AR)
The Central Bank of Brazil raised its interest rate by 100 basis points to 12.25% to combat persistent inflation (a year high). The decision was influenced by domestic economic strength and concerns about global economic conditions. 1Y trend: "Side" (BCB)
Net foreign direct investment in the Philippines declined by 36.2% YoY in September. However, equity capital increased, primarily from Japan, the US, and Singapore. For the first nine months of 2024, FDI inflows rose by 3.8%. 1Y trend: "Down (BSP)

Currencies

The offshore yuan weakened as concerns grew about potential tariffs on Chinese goods. China may consider weakening its currency to offset the impact of these tariffs. Investors are also awaiting the outcome of the Central Economic Work Conference for clues on China's economic policies. 1Y trend: "Up"

Commodities

Crude oil prices rose 2.5% due to the EU's new sanctions on Russian oil. However, concerns about weaker global demand, particularly from China, and increased US fuel inventories limited the price gains. 1Y trend: "Side"