UK Elections, US Unemployment Rate Rises | MarketReader Minute
Some of the largest moves in the market today include: Ethereum has experienced a move of -3.7%. Bitcoin has experienced a move of -3.2%. Copper has experienced a move of +2.0%.
Welcome to the MarketReader Minute.
Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.
If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.
Friday, July 5
The overall market is currently experiencing normal macro volatility. Some of the largest moves in the market today include: Ethereum has experienced a move of -3.7%. Bitcoin has experienced a move of -3.2%. Copper has experienced a move of +2.0%.
The U.S. labor market data released today showed mixed results, with the unemployment rate rising to 4.1% in June 2024, its highest since November 2021, while job growth exceeded expectations at 206K new jobs added for the month. Additionally, average hourly earnings increased by only 0.3%, slightly below forecasts of a higher increase.
In Europe, Germany's industrial production and factory orders both saw significant declines in May; industrial output fell by an unexpected -2.5% MoM and factory orders dropped sharply by -1.6%. These figures indicate ongoing challenges within Europe's largest economy as it struggles with reduced demand across key sectors such as machinery and automotive industries.
The UK general election resulted in a landslide victory for Labour Party with significant implications expected across various markets including currency movements like GBP/USD performance amidst political stability concerns relative to other regions such as France facing elections soon.
iShares MSCI United Kingdom ETF (EWU) [+1.1%]
The iShares MSCI United Kingdom ETF likely rose following the U.K. Labour Party's significant victory in the general election, leading to Prime Minister Rishi Sunak conceding power. This political development can impact market sentiment and economic policies, influencing ETF performance despite mixed housing data and a slight increase in mortgage rates being reported recently. The move in GBP/USD also contributed positively to the ETF's performance during this period.
US 5Y Treasury Bond (USB05Y/USD) [+0.3%]
The US Non Farm Payrolls report for June 2024 revealed job growth slightly below the previous month but higher than expected. The Unemployment Rate increased to its highest level since November 2021, surprising markets. Average Hourly Earnings MoM saw a modest rise in June, impacting wage growth trends with an annual increase meeting expectations around 3.9%. These labor market indicators may have influenced sentiment surrounding the US 5Y Treasury Bond price movement.
Macy's Inc (M) [+7.1%, +375.9M]
Macy's stock surged after Arkhouse and Brigade raised their buyout offer to $24.80 per share, totaling around $6.9 billion for outstanding shares not already owned by the investors. This increased bid reflects positive market sentiment towards Macy's, which seems to be outperforming its sector peers recently due to the heightened acquisition interest.
Archer Aviation Inc (ACHR) [+15.4%, +242.9M]
Archer Aviation Inc's stock price surged after Stellantis N.V., a 10% Owner, made a substantial share purchase, signaling confidence in the company. This move may boost investor sentiment and reflects optimism about Archer Aviation's future prospects. Additionally, Stellantis announced an extra $55 million investment in the eVTOL company - both events likely contributing to the recent stock price increase. The company is also outperforming its sector peers since the previous close.
Smith & Nephew PLC (SNN) [+8.6%, +2.0B]
Activist investor Cevian Capital disclosed a 5% stake in Smith & Nephew, sparking market optimism for potential company shake-ups amid supply chain concerns. With historical CEO turnover and pandemic-related challenges impacting performance, investors anticipate restructuring efforts under new management to drive growth opportunities.
Taseko Mines Ltd (TGB) [+4.0%, +30.3M]
Taseko Mines Ltd's stock performance may be influenced by movements in copper prices, as indicated by its moderate correlation with the United States Copper Index Fund. This suggests a related trend in trading activity between the two assets recently, potentially impacting Taseko Mines' stock price movement significantly.
Thank you for spending a minute with us.
If you have 2 more minutes, watch this demo of the MarketReader Platform:
