SVET Reports
Wednesday's Markets Update (January 8, 2024)
On Wednesday, equities closed mixed, with the S&P and Dow up, while the Nasdaq declined, led by Meta, due to investors' reactions to Trump's potential economic emergency declaration related to tariffs. The Fed's minutes indicated support for gradual interest rate reductions. The dollar index neared a 3-year high. EU economic sentiment dropped sharply to its lowest level in 5 years, particularly in France, Germany, and Italy. Brazilian industrial growth decreased to a 6-month low. All major cryptocurrencies were in the red, led by ADA, LINK, and AVAX, which dropped more than 6%. BTC attempted to stabilize above $94K, while ETH fell to $3.2K in a significant drop as traders continued to close positions to safeguard what remained of their Trump-rally profits.
Details
Private businesses added 122K jobs in December, the slowest pace in four months. Job growth slowed in the service sector, while manufacturing shed jobs. Annual pay growth for job-stayers slowed to 4.6%. 1Y trend: "Side". (ADP)
Initial jobless claims seasonally decreased to 201K in the week ending January 4, 2025, the lowest in eleven months. The 4-week moving average also declined. Outstanding unemployment claims rose slightly. 1Y trend: "Side"(DOL)
Crypto
The ETH Foundation sold 100 ETH recently. The foundation owns over $900M worth of ETH. The Foundation has sold 4,566 ETH ($13M) since June 2022. Rising ETH balances on exchanges signal increased selling pressure. The foundation's continued sales have increased market uncertainty. (source)
World Markets
Consumer confidence in the Euro Area fell to -14.5 in December, reaching its lowest level since April. Consumers became more pessimistic about the general economic situation and major purchases. 1Y trend: "Side". The Euro Area Economic Sentiment Indicator fell sharply to 93.7 in December, reaching its lowest level since November 2020. Confidence worsened across most sectors, with declines in France, Germany, and Italy. 1Y trend: "Down". (EU)
Industrial production in Brazil rose by 1.7% year-over-year in November, the slowest increase in six months. 1Y trend: "Side".(BR)
Currencies
The dollar index rose to 3-year high, nearing 109.3, following report on Trump's potential national economic emergency declaration. The dollar's strength was bolstered by an ISM Services PMI report that showed increased activity and rising prices, along with higher-than-expected job openings, leading traders to anticipate only one rate cut by the Fed later this year. 1Y trend: "Up".