Thursday's Markets Update (October 10, 2024)

11 Oct 2024 by rate3

On Tuesday, equities are up; nine out of the 11 S&P sectors ended higher, led by technology, communication services, and consumer discretionary. Oil dropped on risks-overestimates, as rubber reached a 7-year high on China stimulus and uranium rose to its highest in a month on expected supply cuts. BTC and ETH lingered at week's old levels of $62K and $2.4K.

Details

Unemployment claims rise to 258K, highest in 14 months, driven by Michigan and hurricane-affected states. 1Y trend: "Up" Annual inflation slows to 2.4% in September, lowest since February 2021, but above forecasts. Core inflation unexpectedly rises to 3.3%. Core inflation rate rises to 3.3% in September, beating expectations, driven by services and shelter costs. 1Y trend: "Up" (BLS) and (DOL)

Crypto

Spot ETH ETFs have struggled to match the demand seen in spot bitcoin ETFs. Factors such as the absence of staking yield and the complex marketing of ETH hinder investor interest. While BTC ETFs garnered nearly $19B in inflows over ten months, ether ETFs, launched in July, have faced $556M in net outflows. Additionally, weak ETH price performance and unattractive valuations compared to other assets further dampen demand, making it challenging for these ETFs to capture investor enthusiasm. (source)

World Markets

In September, Argentina's consumer prices rose by 3.5% MoM, the lowest since November 2021, after a 4.2% increase in August. This slowdown was seen in food, transportation, communication, education, health, and hospitality costs. However, prices for housing, utilities, clothing, and footwear increased. YoY, prices surged by 209%, marking the fifth month of disinflation and a decrease from 236.7% in August, aligning with market expectations. 1Y trend: "Down"

Currencies

The dollar index remained around 102.9, poised for its second consecutive weekly gain as recent economic data and central bank cues influenced traders' expectations regarding Fed interest rate cuts. 1Y trend: "Side"

Commodities

WTI crude oil futures hovered around $75.5 per barrel, set for a second weekly gain amid rising supply disruption risks. Israel’s security cabinet discussed possible responses to Iran's missile attack, raising market tensions over potential retaliatory actions against Iran's oil sector. Additionally, Hurricane Milton caused significant fuel shortages and power outages in Florida. Demand prospects improved as China announced a draft law to encourage private sector growth. 1Y trend: "Down"