SVET Reports
Tuesday's Markets Update (December 17, 2024)
On Tuesday the Dow extended its downward streak to nine days—the longest since 1978. The S&P and Nasdaq also declined. Tech stocks like Nvidia and Broadcom fell, while Tesla continued to gain. EU economic sentiment improved but remained subdued. BTC reached a new ATH of ~$108K but continued to correct as whales kept closing their positions en masse, transferring BTC holdings to corporations.
Details
Retail sales increased by 0.7% in November, exceeding expectations. While some sectors like motor vehicles and non-store retailers saw strong growth, others like food services and clothing experienced declines. Overall, consumer spending remained weaker than average. YoY retails increased 3.8%, the highest annual growth rate since December 2023 (average: 4.74 (1993 - 2024); ATH: 52.50 (April 2021); ATL: -19.90 (April, 2020)). 1Y trend: "Up". (Census)
Industrial production declined in November , driven by weakness in mining and utilities. Manufacturing output showed marginal growth, but concerns remain about potential trade pressures under the incoming Trump administration. 1Y trend: "Down" (Fed)
The NAHB/Wells Fargo Housing Market Index remained at 46 in December, slightly below the expected 47. Future sales expectations rose to 66, the highest since April 2022, driven by hopes for regulatory relief post-election. Additionally, 31% of builders reduced home prices by an average of 5%, with 60% using sales incentives, unchanged from November. 1Y trend: "Side" (NAHB)
World Markets
The ZEW Indicator of Economic Sentiment for the Euro Area rose significantly in December, driven by improved economic outlook and expectations of lower interest rates. However, current economic conditions remain weak. 1Y trend: "Down (ZEW) In October the Euro Area recorded a trade surplus of €6.81B, which didn't change the picture of EU trade situation worsening (average: 5580.29M (1999-2024), ATH: 29946.10M (July, 2015); ATL: -55050.80M (August, 2022). 1Y trend: "Down" (EU)