Is another jumbo rate cut looming? 24/09/2024

HOT stories for today

Markets: U.S. equities managed to edge higher as traders assessed remarks from Federal Reserve officials and anticipated potential for additional rate cuts following last week's 0.5% interest rate reduction. Seven out of eleven sectors finished in positive territory, with consumer discretionary (+1.01%) leading the gains, while healthcare (-0.57%) trailed behind.
Stocks on the move: Visa (V) shares fell 1.6% in after-hours trading Monday after reports of a U.S. Justice Department antitrust lawsuit. Ulta Beauty (ULTA) was downgraded by TD Cowen due to rising competition costs. Nike (NKE) dropped after an analyst warned of a 'negative catalyst,' while Snowflake (SNOW) slid 3% after announcing a $2 billion private placement of convertible senior notes.
Today’s action: Traders will analyze new economic data on Tuesday, including the Conference Board’s September consumer confidence report and the Richmond Fed manufacturing index for September. AutoZone and KB Home are also set to release their quarterly earnings. Stay tuned for daily updates.

US Pre-Market

U.S. stock futures remained mostly flat Monday after the S&P 500 and Dow Jones Industrial Average reached new record highs. Dow futures slipped 46 points (0.1%), while S&P 500 and Nasdaq 100 futures edged down less than 0.1% and 0.1%, respectively. According to Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, equities may experience short-term volatility due to geopolitical tensions and the upcoming U.S. presidential election. Meanwhile, JPMorgan reiterated its overweight rating on Micron Technology ahead of its earnings report.
Watchlist for today: V, ULTA, SNOW, NKE, MU, KBH, AZO, TSLA

Bitcoin

Bitcoin was recently hovering around $63,400 after briefly surpassing $64,000 on Monday, marking the first time in a month it reached that level. The leading cryptocurrency by market value has climbed roughly 10% over the last 10 days, with the majority of the increase happening after the Federal Reserve revealed its interest rate decision on Sept. 18. Meanwhile, Ethereum ETF inflows continue to face challenges. Ethereum-based investment products recorded five consecutive weeks of outflows, with an additional $29 million in withdrawals last week, according to CoinShares.
Watchlist: Bitcoin: 62 180-64 820 Ethereum: 2520-2700, Solana: 140.00 -150.80



Forex Market

The EUR/USD extended its upward movement last week, building on the rally sparked by the European Central Bank's rate cut decision two weeks ago. The pair had a technical backdrop for further bullish momentum, as it broke through the upper boundary of a bull flag pattern. However, buyers have yet to push the price toward a re-test of the yearly high at the 1.1200 level. Meanwhile, in the USD/JPY daily chart, the hammer candle formed last Monday set a positive tone for the week. This led to a break above minor downtrend resistance, with the price finally closing above 143.63, a level it had struggled to surpass since early September despite multiple attempts.
Whatchlits: EUR/USD: 1.1099-1.1194, USD/JPY: 139.88 -144.50

Basic Materials

Crude oil climbed during the upbeat Asian session, fueled by China’s measures aimed at boosting growth and energy demand in the world's largest oil importer. However, ongoing worries about China's slowing economy and the potential for increased OPEC+ supply have weighed on oil prices, with Brent crude futures still down about 14% this quarter. Additionally, a major Israeli strike on Hezbollah targets in Lebanon has kept Middle East tensions elevated. In other commodities, industrial metals like copper and zinc also saw gains.
Watchlist: GOLD 2550-2600 US Oil: 68.70 -71.70

The TEFS Analyst team wishes you a successful day!