Market Information Tuesday 27 August 2024

Yesterday, investors shifted towards riskier assets in anticipation of Federal Reserve rate cuts, moving away from tech megacaps. Over 80% of S&P 500 stocks rose, with funds rotating into small caps. This follows Jerome Powell’s hint of rate cuts in September. The S&P 500 stayed near 5,620, the Russell 2000 climbed 0.6%, the Nasdaq 100 dropped 1.1%, and a Bloomberg index of major tech firms fell 1.8%.

Libya’s eastern government announced the shutdown of crude output and exports due to a conflict with the Tripoli-based government over the central bank and oil resources, raising concerns of renewed conflict. Brent crude prices surged by up to 3.2% to over $81 a barrel. This move, declared as “force majeure,” could push Brent crude prices temporarily to the mid-$80s according to Citi’s analysis.

Exxon Mobil Corp. predicts that global oil demand in 2050 will be at or slightly above current levels, challenging the goal of net zero carbon emissions by mid-century. Demand is expected to remain over 100 million barrels a day due to industrial uses. The International Energy Agency suggests demand must drop 75% by 2050 to meet Paris Agreement goals. Exxon also forecasts a 25% decrease in global greenhouse gas emissions by 2050, starting from 2030, but this may not suffice to prevent significant climate change.

The 6M Euribor decreased with 3 basis points to 3.38% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.50% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.