Tuesday's Markets Update (July 2, 2024)

03 Jul 2024 by rate3

On Tuesday, major stock indexes hit new highs, fueled by gains in big tech despite a slight increase in the JOLTS report and Powell signaling continued high rates. Tesla surged +10% after strong deliveries. In global markets, uranium hit a two-week high as many countries announced their intention to triple their nuclear power by 2050. BTC and ETH dipped again slightly, along with the rest of the crypto market, due to continuing investor uncertainty on rates.

Details

Job openings unexpectedly jumped in May to 8.1M, exceeding expectations. This reverses a prior downward trend. Job growth occurred in government and manufacturing sectors, while leisure and education saw declines. Regional openings increased in most areas except the South. 1Y trend: "Down" (BLS)
Economic optimism gained ground in July, reaching a 6-month high of 44.2. This was driven by improvements in consumer outlook for the next 6 months (up 10.6%) and personal finances (up 8.4%). However, the index remains in negative territory overall, extending a 35-month stretch. 1Y trend: "Side" (source)

Crypto

Crypto VC investments (92) dipped in June compared to May (153), with fewer projects (down 40%) and less money raised ($697M, down 30% from $990M). However, there's a positive twist: both figures are still higher (+42%) than June 2023 (480M). (source)

World Markets

Eurozone inflation dipped to 2.5% in June, lower than May's 2.6%. This matched expectations. Price increases slowed for food and energy, but core inflation remained unchanged at 2.9%, despite forecasts of a decrease. Inflation varied across countries. 1Y trend: "Down" (Estat)
Eurozone unemployment hit a record low of 6.4% in May, but the number of unemployed people increased. Spain has the highest rate (11.7%), while Germany has the lowest (3.3%). The rate was 6.5% a year ago. 1Y trend: "Down" (Estat)
The French stock market (CAC 40) dipped 0.7%, mirroring European trends. Investor caution again ahead of key elections overshadowed slightly lower inflation data. Opponents of France's National Rally (RN) intensified their efforts to prevent the far-right party from gaining power, with more candidates announcing they would withdraw from this weekend's run-off election to avoid dividing the anti-RN vote. 1Y trend: "Up"

Commodities

Uranium prices hit a two-week high in July at $86 per pound. This rise comes amid a global push for nuclear power, with countries like China building 22 of 58 global reactors, and Japan restarting its reactors program. However, a US ban on Russian imports threatens supply chains. The US and 20 other countries intend to triple their nuclear power by 2050 while assessing their ability to fill the gap without Russia. 1Y trend: "Up"