Monday's Markets Update (February 5, 2024)

05 Feb 2024 by rate3

On Monday, stock indexes closed lower as upbeat PMI data and Fed comments dampened hopes of a March rate cut. Meta declined on profit taking, Boeing dropped due to weaker outlooks after reworking 50 737 Max jets, Nvidia hit ATH while Tesla dropped to a 10-month low. On the global scene, Eurozone PMI rose while PPI dropped 10% YoY. Cocoa continues to reach record highs on lower crops. The crypto market is mostly in red, with BTC declining 1% and ETH remaining flat. Only ChainLink continued to gain, adding another 5%, and Polkadot followed with a 1% increase. Additionally, data showed that the Web3 industry funding rebounded in 2023, with a total of $9 billion.

Details

The January Composite PMI was confirmed at 52.0, up from 50.9 in December, signaling the fastest expansion since July 2023. Growth was driven by services as manufacturing contracted again. New orders increased at the fastest pace in 7 months despite falling export orders. Input price inflation eased to the lowest level since May 2020, while business confidence hit a 20-month high.(SP)
Vehicle sales declined by 6.9% to 15.00 million annualized units in January, down from December's revised figure of 16.12 million. This follows an average of 14.79 million units from 1976 to 2024, with a record high of 21.71 million in October 2001 and a low of 8.48 million in April 2020. (NADA)

Crypto

The Web3 industry rebounded strongly in 2023. Total funding reached $9.043 billion, with enterprise infrastructure and wallets favored. Ethereum's developer numbers grew by 66%, and compliance and social sectors gained importance. HashKey Capital led investments in infrastructure, DeFi, and other sectors in the Asia-Pacific region.(source)

World Markets

The Eurozone Composite PMI rose in January to a 6-month high but still below 50, indicating a slower decline in business activity. Still, France's and Germany's PMI are below 50 and degrading. New orders fell at the slowest rate in 7 months, helping stabilize employment in the eurozone. Both input costs and output prices increased at their fastest pace in 8 months while future growth expectations improved to their strongest in 9 months.(SP)
Euro Area industrial producer prices fell by 10.6% in December 2023, exceeding expectations. Energy prices led the drop with a 27.5% decrease, while intermediate goods and durables also saw price reductions. Excluding energy, producer prices decreased by 0.4%. Month-over-month, producer prices fell by 0.8%, the biggest drop since May.(EuroStat)

Brazil's Composite PMI rose to 53.2 in January 2024, marking the fastest expansion in 15 months. Both services and manufacturing activity accelerated, leading to a sharp increase in sales. Job creation also picked up pace, with manufacturing companies hiring more than service providers. Input cost pressures eased while charge inflation quickened, with services seeing higher inflation rates.(SP)

Commodities

Cocoa futures hit record highs above $5,100 per tonne amid worries that harsh Harmattan winds are severely damaging crops in top producer Ivory Coast, potentially reducing yields for the April mid-crop. Ivory Coast has halted 2024/25 forward sales as shipments so far this season are down 36%. Poor crops in Ivory Coast and Ghana expected to lead to a large 2023/24 global cocoa deficit.