Monday's Markets Update (May 6, 2024)

06 May 2024 by rate3

On Monday, stocks rose at the start of the week, extending gains on hopes of a Fed rate cut in September, still fueled by Friday's weak jobs data. Investors will look for clues from Fed officials and earnings reports. Internationally, copper reached a two-year high, while China's economy sends mixed signals. BTC and ETH drifted sideways, while most of the major alts were in the red, with Polkadot and Polygon sliding by about 2%.

Crypto

A 2030 forecast by Vodafone predicts a massive rise in both smartphones (8B) and crypto wallets (5.6B), potentially reaching 70% of the world's population. Despite financial challenges like Vodafone Idea's debt situation, Vodafone Group has partnered with Microsoft on AI services in 2024. (source)

World Markets

The Eurozone service sector grew faster in April than any time in almost a year, with rising sales and hiring. Backlogs grew slightly for the first time in months, but business confidence stayed high. Prices rose a bit, but remained subdued overall. (SP)
Eurozone producer prices continue to fall, down 7.8% YoY in March. Energy prices led the decline, while inflation for other goods slowed. Monthly prices also fell slightly. (EC)

Currencies

China's offshore yuan weakened past 7.22 per dollar after a strong dollar and anticipation of rate comments. The Chinese central bank is trying to stabilize the currency, while some economic data showed mixed signals: manufacturing improved slightly, but services dipped a touch.

Commodities

Copper prices surged near a two-year high (4.6) due to a weaker dollar and worries about supply. A softer jobs report and dovish Fed signals weakened the dollar, making copper cheaper for foreign buyers. This amplified existing supply concerns due to mine suspensions, lower smelter output, and industry consolidation.