The Day at a Glance | June 25 2024

The Top

• On Tuesday, Federal Reserve Governor Michelle Bowman said that a stable monetary policy rate “for some time” is needed to defeat inflation. 

• US single-family home prices rose at a steady pace in April, although momentum could slow as higher borrowing costs weigh on housing demand. 

• According to Reuters, European political groups reached an agreement on top EU positions on Tuesday, selecting German Ursula von der Leyen for a second term as head of the European Commission. 

• According to the head of the Paris stock exchange, early elections in France are worrying investors. 

• The Bank for International Settlements said that central banks should leverage the benefits of artificial intelligence, though they emphasized that technology should not replace humans in setting interest rates. 

• Oil prices are falling with attention on US inflation data.

• Bitcoin fell below $60,000 for the first time since May 3rd, setting at $59,562.54.

Economic Environment

On Tuesday, Federal Reserve Governor Michelle Bowman said that a stable monetary policy rate “for some time” is needed to defeat inflation. On Tuesday, the Fed Governor reiterated her view that maintaining a stable monetary policy rate “for some time” will likely be sufficient to control inflation, but also reiterated her willingness to increase borrowing costs, if necessary. Notably, Bowman pointed out that inflation in the US remains high and there are several upside risks affecting the economic outlook, so caution should be maintained until economic data indicatesthat inflation is moving sustainably towards the 2% targetlevel. In this regard, Bowman said that improvements in supply chains and labor supply due to immigration, which helped reduce inflation last year, are unlikely to continue. Additionally, she noted that geopolitical conflicts could put upward pressure on energy and food prices. Lastly, the governor said that it´s possible that other central banks may begin cutting their benchmark rates before or at a faster pace than the Fed. This Friday, consumption and PCE inflation figures for May will be released; it´s estimated that the Fed’s preferred indicator for tracking inflation will decrease from 2.7% in April to 2.6%.

Markets and Companies

Global markets carry mixed sentiment. Main US indices are in mixed territory today due to a rebound in Nvidia shares, with the S&P up by +0.12%, the Nasdaq by +0.52%, while the Dow falls by -0.25%. Meanwhile, the yield on the 10-year Treasury bond stands at 4.24%. In Europe, the Euro Stoxx index is down -0.77% with its sectors mixed. Industrial stocks fell by -1.97%, while oil and gas stocks rose by +0.54%. In Asia, Japan’s Nikkei 225 rose by +0.95%, ending the day at 39,173.2. China ended slightly lower at 2,960 (-0.44%). In Mexico, the IPC is down and stands at 52,451.2 points. Oil prices are down as the market watches summer fuel demand and tensions at the Israel-Lebanon border. Today, the price is set at $81.09 per barrel.Gold is down -0.7%, settling at $2,325 per ounce. Silver is trading at $29.25 per ounce (-1.1%) and copper at $438 per pound (-0.8%). Lastly, cryptocurrencies are up. Bitcoin fell below $60,000 for the first time since May 3rd, dropping around -7% to $59,562.54, but has rebounded today, rising by +2.21%.

After yesterday’s trading session, the exchange rate ranged between a minimum of 17.87 and a maximum of 18.06, currently trading at 17.98.

Corporate News

• Shares of SolarEdge Technologies fell by 17% after announcing plans for a $300 million private offering of convertible notes. 

• Shares of Sea Limited in the United States, a consumer internet company based in Singapore, fell by more than 4% after JPMorgan downgraded its rating from overweight to neutral.

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