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Article | 02 May 2024 | Investments
-4.2%S&P 500 |
-3.2%EURO STOXX 50 |
2.4%FTSE 100 |
-2.7%CAC 40 |
-3.0%DAX 30 |
1.0%BEL 20 |
-2.9%FTSE MIB |
-2.0%IBEX 35 |
-0.9%TOPIX |
| Source: Bloomberg 30.04.2024 |
In agricultural commodity markets, cocoa soared after adverse weather brought a poor harvest, forcing chocolate prices higher. Among precious metals, gold hit successive record highs, responding to sticky US inflation and uncertainty over the path of interest rates. Copper touched a thirteen month peak, buoyed by demand from Chinese electric vehicle (EV) producers. Meanwhile, rises in the oil price have been benign, despite production cuts and mounting geopolitical tensions. This matters in a US election year, as higher gasoline prices will alienate voters. A potential spike in the oil price has been dubbed ‘Biden’s kryptonite’.
In China, Q1 growth topped expectations at 5.3%. Sentiment data improved, with the Caixin survey moving further into expansion territory, driven by both the output and new orders components. Challenges remain, however, including uncertainty over the move away from a property-led growth model. The renminbi’s fall against the dollar might have boosted export volumes, but the US has raised a flag over the world’s second largest economy potentially exporting its overcapacity in EVs, solar panels and wind turbines. Meanwhile, President Xi commented that falling prices for China’s exports are helping to ease global inflationary pressures.
The quarterly earnings season proved tricky for some tech giants. Shares in Nvidia fell 10% in one day, reflecting concerns over wider chip sector earnings. Meta shares tumbled after the company forecast a toxic combination of lower revenues and higher levels of investment in AI. Elsewhere, Tesla suffered seven straight days of losses after price cuts on three of its EV models swiftly followed news of 10% staff cuts. On top of this, almost 4,000 Cybertrucks were recalled to fix a stuck accelerator pedal issue. On a brighter note, Amazon’s market cap briefly touched $2 trillion.
