Thursday's Markets Update (November 14, 2024)

14 Nov 2024 by rate3

On Thursday, equities fell as investors digested mixed economic data and Powell's comments. The PPI report showed some inflationary pressures, while the Fed's stance on rate cuts became less certain. The tech and consumer discretionary sectors lagged, while energy and industrials outperformed. The dollar continued to surge on "Trump's trade" combined with hawkish comments from the Fed, while the EU manufacturing sector continues to slow down. BTC (88K) and ETH (3.1K) entered correction territory due to an absence of retail buyers, while corporate traders were quick to take profits at the first opportunity.

Details

Powell stated that strong economic growth allows for a cautious approach to interest rate cuts. He emphasized that immediate reductions are unnecessary, as the economy remains robust and the labor market is resilient. Despite slight rises in inflation and weaker job growth in October, Powell reaffirmed the Fed's commitment to its 2% inflation target, acknowledging that the journey to that goal may be uneven. (Fed)
Producer prices rose 0.2% MoM in October, driven by increases in services and goods. Annual PPI inflation accelerated to 2.4%, with core inflation reaching 3.1%. These figures indicate persistent inflationary pressures in the US economy. 1Y trend: "Side" (BLS)
Jobless claims fell to a 7-month low of 217K, defying expectations of an increase. This indicates a resilient US labor market despite recent rate hikes. The four-week moving average also declined, suggesting sustained labor market strength. 1Y trend: "Up" (DOL)

Crypto

Solana's network activity has surged. This is largely driven by increased meme coin trading and DEX bot activity. Solana's DEX, Raydium, has even surpassed Ethereum in daily fees. While this bullish sentiment is reflected in SOL's price increase, it also exposes the network to potential risks if market conditions change. (source)

World Markets

The Eurozone's GDP grew by 0.9% year-on-year in Q3, surpassing the previous quarter's growth. This is the best performance since Q1 2023. The European Central Bank (ECB) expects the Eurozone economy to grow by 0.8% in 2024. 1Y trend: "Up" Eurozone industrial production fell by 2.8% year-over-year in September. This decline was driven by weak demand and ongoing supply chain disruptions. While the pandemic years saw extreme fluctuations, the recent trend indicates a slowdown in the Eurozone's manufacturing sector. 1Y trend: "Down" (EU)
Brazil's economic activity accelerated in September 2024, driven by strong growth in the service sector, particularly due to the Rock in Rio festival. Industry and retail sectors also saw faster growth. This positive momentum suggests a robust economic recovery in Brazil. 1Y trend: "Up" (BR)