Tuesday's Markets Update (December 24, 2024)

24 Dec 2024 by rate3

On Tuesday, equities rose during the shorter trading session on Christmas Eve, led by Nvidia, Tesla, and Amazon, despite a slightly improving regional manufacturing situation (Richmond) as the market anticipates a pause in interest rate hikes by the Fed. The Brazilian real, South African rand, and New Zealand kiwi weakened against the dollar. New Zealand currency was further impacted by its economy entering a technical recession. BTC and ETH continued to edge higher as some traders tried to regain the New Year rally spirit.

Details

The Richmond Fed Manufacturing Index improved slightly in December, rising from -14 to -10. New orders and shipments stabilized, while employment remained positive. Business optimism increased, with firms expecting stronger future activity. 1Y trend: "Down" (RFed)

Crypto

On of largest cryptocurrency exchanges, saw a 683% surge in Gen Z users after the 2024 presidential election. Trump's pro-crypto policies and market growth fueled this increase. Gen Z, representing 53.8% of new users, is increasingly influential in crypto, driven by their digital-native mindset and openness to alternative finance. This trend has global implications for cryptocurrency adoption. (source)

World Markets

Car sales in Thailand continued to decline sharply in November, falling 31.34% YoY (reaching to lowest points of 2020, 2008 and 2000). This marks the 18th consecutive month of decline, driven by rising household debt and tighter lending conditions. The FTI revised its car sales and production forecasts for 2024 downward. 1Y trend: "Down" (Tai)

Currencies

The South African rand weakened to a multi-month low against the US dollar. The Fed's hawkish stance and stronger dollar increased pressure on emerging markets. While South Africa's inflation remains low, economic growth has slowed, and political uncertainty persists. 1Y trend: "Side"
The New Zealand dollar remained weak near a 2-year low. Expectations of further interest rate cuts by the RBNZ, following weaker-than-expected economic data, weighed on the currency. GDP contracted by 1% QQ after -1.1% in the previous period, officially pushing the country into recession. A slight easing of the US dollar provided some brief support. 1Y trend: "Down"

Commodities

Rice futures fell to a 3-year low amid expectations of increased supply. India's record rice reserves could boost exports and lower prices. The USDA slightly lowered global rice supply and consumption forecasts for 2024/25, with India's higher reserves contributing to increased ending stocks. 1Y trend: "Down"