Global Economic Daily - 29/04/2024
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Quote of the Day: Nobody who ever gave his best regretted it. – George Halas
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Equities: Stocks jumped Friday, and the?S&P 500?and Nasdaq Composite?notched their best week since November?as Big Tech names rallied on strong earnings and traders pored through fresh U.S. inflation data. The broad market index advanced 51.54 points to settle at 5,099.96. The tech-heavy?Nasdaq?100 climbed 287.80 points to close at 17,718.30 and secure its best daily move since February. The?Dow Jones Industrial Average?rose 153.86 points to finish at 38,239.66. The S&P and Nasdaq clinched their best week since November. The S&P popped 2.7% to snap a three-week losing streak, while the Nasdaq gained 4.2% for its first positive week in five. The Dow edged up 0.7%. Investors also parsed March’s?core personal consumption expenditures?reading following a spate of reports that suggested slowing growth and sticky inflation. The gauge, excluding food and energy, rose 2.8% from a year ago and came in ahead of the 2.7% expected by Dow Jones. Personal spending rose 0.8%, ahead of a 0.7% estimate. Those moves helped Wall Street regain some of its footing after a down day. The blue-chip Dow slid 375 points Thursday after new U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation. The Federal Reserve’s next rate decision is due out Wednesday. TECHNICAL OUTLOOK - The Dow and S&P are now below the 14, 21 day moving average.
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Crude Oil: Oil prices settled higher on Friday, garnering support from tensions in the Middle East, but a strong dollar and U.S. inflation data quashed hopes that the Federal Reserve would cut interest rates soon, giving prices a ceiling. Benjamin Netanyahu, Israel's prime minister, said any rulings by the International Criminal Court, which is investigating Hamas' Oct. 7 attacks on Israel and Israel's military assault on Gaza, would not affect Israel's actions but would "set a dangerous precedent”. As tensions escalate, Israel's military said on Friday that its air force?struck?in Lebanon's West Beqaa District and killed a militant who advanced attacks against Israel. Israel?stepped up?air strikes on Rafah on Thursday after saying it would evacuate civilians from city in southern Gaza and launch an all-out assault despite allies' warnings that doing so could cause mass casualties. srael is not afraid to come and support themselves on their own if they have to, people are watching to see what happens between Netanyahu and Biden. Meanwhile, macroeconomic pressures capped gains after data released on Friday showed growing inflation. In the 12 months through March, U.S.?inflation rose?2.7% after an advance of 2.5% in February. Last month's increase was broadly in line with economists' expectations. The Fed has a 2% inflation target. The U.S. central bank is expected to leave rates unchanged at its policy meeting next week. U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. GDP growth for the first quarter could be?revised higher, and inflation will ease after a clutch of "peculiar" factors held the economy to its weakest showing in nearly two years. U.S. economic growth was likely stronger than suggested by the weaker quarterly data, Yellen said. Oil prices have flip-flopped since Yellen's comments and the release of the inflation data on Friday. TECHNICAL OUTLOOK – The Crude is above the 14, 21 day moving average.
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Metals: Gold and silver prices are firmly higher in early U.S. trading Friday. The two precious metals surprisingly showed very little reaction to another U.S. inflation report that came in a bit warmer than market expectations. The data fell into the camp of the U.S. monetary policy hawks, who want to see the Federal Reserve hold off on cutting interest rates. Technically, the gold futures bulls have the firm overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. The silver bulls have the firm overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at this week’s high of $28.795. The next downside price objective for the bears is closing prices below solid support at $25.00. TECHNICAL OUTLOOK – Gold and silver are above the 14, 21 day moving average.
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