Friday's Markets Update (December 27, 2024)

28 Dec 2024 by rate3

On Friday, equities fell, led by declines in major tech stocks. Despite weekly gains, rising Treasury yields reaching yearly highs and concerns about the Fed's changed rate-easing policy are weighing on investors. Profits for China's industrial firms declined. EU gas prices increased notably due to geopolitical factors. BTC and ETH continued to edge down, following the decline in stocks. BlackRock's ETF was reported to hold over 1M ETH.

Details

The 10-year Treasury yield rose above 4.6%, driven by Fed's sudden policy reversal to seeing inflation as a greater threat to the economy than a slowing labor market. 1Y trend: "Up"

Crypto

BlackRock's ETH ETF now holds over 1M ETH, worth over $3.5B. This indicates growing institutional investor confidence in ETH, despite its recent price struggles compared to BTC. The ETF allows investors to gain exposure to ETH without directly holding the cryptocurrency. (source)

World Markets

Profits of China's industrial firms declined by 4.7% YoY in the first 11 months of 2024. Weak demand, deflation risks, and the property downturn weighed on profits. Profits fell across various sectors, including ferrous metals, chemicals, and cars. Monthly profits shrank 7.3% in November, on track for the sharpest annual decline on record. 1Y trend: "Down" (CN)
Retail sales in Spain grew 1% YoY in November, slower than expected. Growth slowed in both food and non-food categories. On a monthly basis, retail sales declined 0.6%. 1Y trend: "Up" (INE)

Commodities

WTI crude oil prices rose 1.4%, supported by a larger-than-expected decline in oil inventories. However, concerns about lower Chinese demand and increased non-OPEC+ supply weighed on prices. Uncertainty surrounding energy policies under the new administration also impacted market sentiment. Despite geopolitical jitters, oil prices has remained uncharacteristically stable for a fourth month in a row, pointing at World's economic stagnation. 1Y trend: "Side"
European natural gas futures rose 2% due to concerns over potential disruptions to Russian gas supplies. The current transit agreement with Ukraine expires this year, and negotiations for a new deal face challenges. A potential loss of Ukrainian gas could increase Europe's reliance on other sources. 1Y trend: "Up"
Steel rebar futures in China declined by 17% in 2024, driven by weak demand amid the country's economic slowdown. The property crisis and sluggish construction activity have significantly impacted demand for steel. Despite government support measures, economic activity remains weak, and the manufacturing sector continues to contract. 1Y trend: "Down"