Daily Brief - 3 July 2024

Crypto funds face third week of outflows despite Bitcoin ETF gains

  Crypto investment products have seen outflows for the third week in a row, totalling $30 million last week. Ethereum had the largest outflow since 2022, losing $60 million.

Bitcoin ETFs broke their losing streak, attracting $10 million, with BlackRock and 2X gaining the most. Despite recent approvals of Ether ETFs, Ethereum products still face significant outflows.

Bitcoin and Ether saw minor price gains, yet both suffered substantial losses in the second quarter.

Surge in Aussie retail sales sparks talk of rate hike

  Australian retail sales jumped by 0.6% in May, double what economists had predicted.

This increase, driven by early sales and discounts, strengthens the case for an interest rate hike by the Reserve Bank of Australia (RBA). Yields on three-year bonds rose as markets bet on a potential rate hike.

Despite this, overall retail growth remains weak, with sales up just 1.7% from last year. Economists are divided on whether the RBA will raise rates in August, with many watching upcoming inflation data closely.

European stocks rise following Wall Street records

 European stocks climbed as the S&P 500 closed above 5,500 for the first time, boosting optimism about potential US interest-rate cuts. The Stoxx 600 index gained 0.5%, led by miners and technology companies.

French stocks rose amid efforts to block Marine Le Pen’s far-right group from a majority. The Nasdaq 100 also hit an all-time high, driven by strong corporate earnings and expectations of rate cuts.

Investors are now looking at upcoming US employment data for further market cues. Meanwhile, oil prices increased, and Australian bond yields rose after positive retail sales data.