SVET Reports
Tuesday's Markets Update (February 4, 2025)
On Tuesday, equities closed in the green, boosted by weaker job openings data and falling factory orders. Gold reached a fresh all-time high due to tariffs and the quantitative easing measures of central banks worldwide. The Indian rupee continues to devalue in response to China's counter-tariffs and capital outflows as the local economy decelerates. The yuan also weakens. BTC, SOL, and ETH are slowly recovering after the flush crash on Feb 2.
Details
Job openings fell to 7.6M in December 2024, missing expectations. Decreases were seen in several sectors, including professional services, healthcare, and finance. Hires increased, while separations rose slightly. 1Y trend: "Down" (BLS)
Manufactured goods orders fell 0.9% to $578.5B in December 2024, worse than the expected 0.7% drop and the sharpest decline since June. Transportation goods sank 7.4%, led by a 45.7% plunge in nondefense aircraft orders, while primary metals dipped 0.5%. 1Y trend: "Side"
Crypto
ETH ETF trading volume surged to a record $1.5B, up 23% from the previous high of $1.22B on Dec. 19, 2024. BlackRock’s ETHA led with $736M, while spot ETH ETFs saw $84M in net inflows, totaling $10B in assets. BTC ETFs faced $235 million in outflows.
Currencies
The offshore yuan fell to 7.32 per dollar as China imposed tariffs on USA imports, including 15% on coal and LNG and 10% on crude oil and cars, retaliating against Trump's levies. 1Y trend: "Up, Depreciating"
The Indian rupee slipped to 87.07 against the USD as China’s retaliatory tariffs fueled trade tensions, weighing on emerging markets. Crude oil's rise and foreign outflows added pressure. Traders await India’s economic data and the RBI’s policy meeting for inflation and currency stability measures. 1Y trend: "Up, Depreciating"
Commodities
Gold reached a fresh ATH above $2,840 per ounce, driven by safe-haven demand amid escalating trade tensions. Trump's tariffs on China and Beijing's retaliation fueled concerns about global growth. Lower interest rate expectations from the Fed, supported by weaker job openings data and falling factory orders, further boosted gold. 1Y trend: "Side"