Weekly Market Recap: Market Gains Amid Rate Shifts and Economic Data 

During the week of September 16-20, key economic updates included central bank actions and market movements. The Federal Reserve cut its interest rate by 0.5%, the Bank of Japan held steady at 0.25%, and the Bank of England maintained its rate at 5%. Canada’s CPI slowed to 2.0% year-over-year, and New Zealand’s GDP contracted by 0.2% in Q2 2024. Australia added 47,500 jobs in August.

In the markets, the S&P 500 rose by 1.4%, while Gold prices increased by 1.68%. The US Dollar Index saw a weekly decline of 0.37%, reflecting broader central bank adjustments and geopolitical concerns.

Tuesday, September 17

15:30 – Canada: CPI m/m (CAD)

The Consumer Price Index (CPI) rose 2.0% year-over-year in August, marking the slowest inflation increase since February 2021, down from 2.5% in July. The slowdown was driven partly by lower gasoline prices. Excluding gasoline, the CPI increased 2.2% in August. Mortgage interest and rent costs were the largest contributors to CPI growth. On a monthly basis, the CPI fell by 0.2%, mainly due to lower prices for air travel, gasoline, and clothing, while seasonally adjusted, it rose 0.1%.

The USDCAD exchange rate increased by 0.08% compared to the previous day.

15:30 – USA: Retail Sales m/m (USD)

Retail trade sales were up 0.1 percent from July 2024 and 2.0 percent from last year.

The EURUSD declined by 0.17% from the day before.

9:00 am – UK: CPI y/y (GBP)

The Consumer Prices Index (CPI) rose by 2.2% in the 12 months to August 2024, unchanged from July.

The GBPUSD currency pair increased by 0.4 from the day before.

21:00 – USA: Federal Funds Rate (USD)

On September 18, 2024, the Federal Reserve lowered the federal funds rate by 0.5% to a range of 4.75% to 5%, citing progress on inflation, which remains somewhat elevated but is moving toward the 2% target. Job gains have slowed, and unemployment has risen slightly but remains low. The Fed expressed confidence in achieving its dual mandate of maximum employment and stable inflation while remaining cautious of economic uncertainties.

The US Dollar Index saw a slight decline of 0.08%.

01:45 am – New Zealand: GDP q/q (NZD)

In the June 2024 quarter, New Zealand’s GDP fell by 0.2%, following a 0.1% increase in the previous quarter. Expenditure on GDP remained flat, and GDP per capita declined by 0.5%. Key sectors such as manufacturing showed growth, while wholesale trade, retail, and agriculture experienced declines. Real gross national disposable income remained unchanged, reflecting flat purchasing power for New Zealanders during the quarter.

The NZDUSD exchange rate rose by 0.105% compared to the previous day.

04:30 am – Australia: Employment Change (AUD)

In August 2024, Australia’s unemployment rate remained steady at 4.1% and 4.2% (seasonally adjusted). Employment increased by 47,500 people to reach 14.44 million, with a slight rise in part-time employment offsetting a decrease in full-time jobs.

The exchange rate for AUDUSD increased by 0.45%.

14:00 – UK: Official Bank Rate (GBP)

At its meeting ending on September 18, 2024, the Monetary Policy Committee (MPC) voted 8–1 to maintain the Bank Rate at 5%, with one member favoring a 0.25% reduction. The MPC unanimously agreed to reduce its UK government bond holdings by £100 billion over the next 12 months.

The GBPUSD saw an increase of 0.55%.

16:30 – USA: Unemployment Claims (USD)

For the week ending September 14, 2024, US initial jobless claims decreased by 12,000 to 219,000. The four-week moving average also fell by 3,500 to 227,500. The seasonally adjusted insured unemployment rate remained unchanged at 1.2%, with 1.83 million people claiming benefits, a decrease of 14,000 from the previous week.

The EURUSD saw a 0.4% increase compared to the previous day.

02:30 am – Japan: BOJ Policy Rate (JPY)

The Bank of Japan maintained its overnight call rate at 0.25%, noting moderate economic recovery with some weaknesses. Corporate profits and business investment are improving, and consumption is rising despite inflation of 2.5-3.0%, driven by higher service prices and wages. Inflation is expected to rise gradually, supported by wage growth, while global economic and exchange rate risks remain.

The USDJPY exchange rate appreciated by 0.85% compared to the previous trading day.

15:30 – Canada: Retail Sales m/m (CAD)

In July, retail sales in Canada rose by 0.9% to $66.4 billion, driven by a 2.2% increase at motor vehicle and parts dealers. Core retail sales, excluding gasoline stations and motor vehicle dealers, increased by 0.6%.

The USD/CAD pair experienced a modest appreciation of 0.08%.

• Crude Oil
  Crude Oil had a 4.1% weekly increase.
• Brent Oil
  Brent rose by 3.15% compared to the previous week
• Gold
  The precious metal Gold (XAUUSD) concluded the week on Friday with a 1.68% weekly increase.
• Silver
  XAGUSD increased by 1.45% from the previous week.

• S&P 500 increased by 1.4%
• DJIA was up by 1.6%
• NASDAQ 100 increased by 1.52%

• Battalion Oil Corporation (BATL) 123.47%
• Banzai International, Inc. (BNZI) 98.26%
• Jin Medical International Ltd. (ZJYL) 54.55%

• Garden Stage Limited (GSIW) -82.89%
• Corbus Pharmaceuticals Holdings, Inc (CRBP) -67.43%
• Skye Bioscience, Inc. (SKYE) -42.81%

Monday, September 16: SDA (SunCar Technology Group)

Tuesday, September 17: FERG (Ferguson Enterprises Inc.)

Wednesday, September 18: GIS (General Mills, Inc.)

Thursday, September 19: FDX (FedEx Corporation)

Thursday, September 19: LEN (Lennar Corporation)

Friday, September 20: GFI (Gold Fields Limited)

SunCar Technology Group (SDA) reported a 27% increase in revenue for the first half of 2024, reaching $203.1 million. Auto eInsurance saw significant growth, with a 55% rise to $73.7 million, driven by increased policy sales. The technology services segment grew by 70% due to higher demand from insurance companies. While operating costs surged, including a notable increase in share-based compensation, the company maintained a positive Adjusted EBITDA of $6.0 million, up 4%. Key partnerships with electric vehicle manufacturers and banks are driving business expansion.

Ferguson Enterprises Inc. (FERG) reported Q4 sales of $7.9 billion, up 1.4%, with adjusted operating profit rising 5.3% to $857 million and a 10.8% adjusted operating margin. For the full year, revenue remained flat at $29.6 billion, while gross margins improved by 10 basis points to 30.5%. Despite challenging markets and deflation, Ferguson returned to volume growth, expanded gross margins, and achieved strong operating margin performance. The company returned $1.4 billion to shareholders through dividends and buybacks and highlighted continued growth from large capital projects and strategic acquisitions.

General Mills (GIS) reported a decline in profits for its fiscal first quarter, with revenue down 1% to $4.85 billion and net income dropping to $579.9 million due to lower prices and higher costs. Despite the drop, the company affirmed its outlook for fiscal 2025, projecting flat to 1% growth in organic net sales. Amid an “uncertain macroeconomic backdrop,” the company expects sales volume to improve. Last week, General Mills announced plans to sell its US and Canadian yogurt businesses for $2.1 billion.

FedEx (FDX) reported disappointing quarterly results, with revenue of $21.6 billion and adjusted earnings of $3.60 per share, missing both internal and consensus estimates. The company also lowered its full-year outlook, leading to a decline in its stock.

Gold Fields Limited (GFI) reported a profit of $389 million ($0.43 per share) for the six months ended June 30, 2024, down from $458 million ($0.51 per share) in the same period in 2023.

In conclusion, central banks took notable actions during the week of September 16-20, with the Federal Reserve cutting rates by 0.5%, while the Bank of Japan and Bank of England maintained their rates at 0.25% and 5%, respectively. Key economic data included Canada’s slowing inflation and New Zealand’s GDP contraction. In the markets, the S&P 500 rose by 1.4%, Gold increased by 1.68%, and the US Dollar Index saw a slight decline of 0.37%, reflecting economic adjustments and broader market trends.