Daily Brief - 10 July 2024

Markets stay hopeful with steady S&P 500 and rising China stocks, as rate cut speculation continues

The S&P 500 in the US has reached a new high after climbing for six days in a row, while European stocks also saw a slight increase.

This comes as traders expect the US Federal Reserve might cut interest rates this year, after comments from Fed Chair Jerome Powell about a cooling job market. In China, consumer prices are barely rising, showing that the economy is struggling to grow. The Chinese central bank might take action to manage very low bond yields.

Meanwhile, commodity prices like oil and copper are falling, hinting at concerns over demand, especially from China.

Tesla powers up as top stake in Cathie Wood’s ARK innovation ETF

Tesla's stock has surged by over 80% since April, making it the biggest holding in the ARK Innovation ETF, managed by Cathie Wood.

It now forms 15.4% of the fund’s total assets, valued at $6.2 billion. This is the highest percentage in the fund's 10-year history. Although the ETF itself has seen a 12% drop this year, Tesla has experienced a significant rally, rising for ten consecutive sessions recently.

Amidst broader market shifts, Cathie Wood remains optimistic, forecasting a substantial future rise in Tesla's stock value.

Investors snap up Bitcoin ETFs, betting on rebound from recent lows

Bitcoin has seen a significant drop of 20% since early June, driven down by worries that Mt. Gox creditors might sell off their distributed tokens.

Despite this, investors have shown their optimism by injecting $438 million into US Bitcoin ETFs over just two days. This recent purchase trend indicates a belief that the current price drop presents a good buying opportunity. Bitcoin's value increased by 3.3% on Tuesday, although it is still well below its March peak.

Experts suggest that the ongoing liquidation issues will resolve, hinting at a possible recovery for Bitcoin’s price.