Weekly Review (August 22-26)
STOCKS
Snapping a three-session sell-off, US stock markets turned higher on Wednesday and have been retaining bullish bias since then. In part, the sentiment improved due to upbeat economic data out of the United States. Second-quarter GDP showed a smaller contraction than initially expected, while US jobless claims declined for the second week in a row. On the other hand, the economic signals give the central bank more space to continue its aggressive pace of tightening, especially as inflation remains elevated. For now, traders are pricing in a 61% chance that the US central bank will hike rates by another 75 basis points at its September meeting. On Thursday, the Dow spiked 0.98%, the S&P 500 jumped 1.41%, and the Nasdaq Composite advanced 1.67%. However, the indices are on pace for a bearish week, with the Dow down 1.23%, the S&P 500 is 0.69% lower, and the Nasdaq Composite is down 0.52% ahead of the Friday’s session.
26.08.2022
1256
Weekly Review (August 15-19)
STOCKS
Global stocks were mixed-to-higher at the start of the week before losing some ground as the FOMC meeting minutes revealed a more hawkish stance than expected. The central bank said it plans to continue raising interest rates into restrictive territory to cool inflation. Members of the FOMC also said they plan to double the pace of balance sheet shrinkage in September. After a choppy session, US stocks finished slightly higher on Thursday as the rally continued to abate. The S&P 500 rose 0.23%, while the Nasdaq inched 0.21% higher and the Dow Jones Industrial Average added less than 0.1%. Yesterday’s gains have brought the Dow and S&P 500 into positive territory for the week while the Nasdaq is down more than 0.5% since Monday so far. On the data front, existing home sales fell 5.9% last month compared to June, highlighting a drag from higher borrowing costs.
19.08.2022
1186
Weekly Review (August 8-12)
STOCKS
Global stocks were mixed at the start of the week as the buying momentum has waned since an unexpectedly strong US jobs report stoked expectations of a more aggressive interest rate rise by the Federal Reserve. US indices closed at their highest levels since early May after the data showed that July’s CPI slowed due largely to lower energy prices. Another report showed that the July producer price index showed a surprise decline last month. The index dropped 0.5% versus the expected gain of 0.2%. However, the release failed to inspire investors as Wall Street stocks finished mixed on Thursday, losing the early steam. Capping gains in the financial markets, Fed's Daly said the central bank is not near done yet in battle against inflation. The S&P 500 closed down 0.07%, the Nasdaq Composite slumped 0.58% and the Dow jones added less than 0.1%.
12.08.2022
1142
Weekly Review (August 1-5)
STOCKS
Global stock markets were mixed-to-higher this week, with sentiment improving towards the weekend. However, a cautious tone continues to persist amid a conflict between the US and China. On the positive side, upbeat economic updates helped ease recession worries. The US ISM non-manufacturing PMI came in at 56.7, above 55.3 in June versus 54 expected. Factory orders also exceeded expectations, rising 2% versus the expected gain of 1.2%. Adding to a more upbeat tone, Fed’s Bullard said that he doesn’t think the US is currently in a recession. Wall Street stocks ended mixed on Thursday after the data showed that initial claims for unemployment insurance totaled 260,000 last week, in line with estimates. The Dow Jones Industrial Average shed 0.26%, the S&P 500 fell 0.08% and the Nasdaq Composite increased 0.41% to hit a fresh three-month high due to a 2% rally in Amazon stocks.
05.08.2022
1138
Weekly Review (July 25-29)
STOCKS Global stocks were mostly positive during the week, with the buying pressure intensifying after the Fed raised its interest rate by 0.75% as expected by market, but hinted that it could slow the pace of its hiking cycle at some point. A less hawkish tone by Powell triggered a jump in risky assets across the markets. Elsewhere, shares of Alibaba Group plunged more than 2% on Friday after a three-day ascent in reaction to the announcement plans to change the status of its Hong Kong-traded shares to make them more accessible to mainland Chinese buyers. Wall Street stocks extended the ascent on Thursday, with European indices looking cautiously optimistic ahead of the weekend, cheering upbeat economic data. Spain’s Q2 preliminary GDP came in at +1.1% versus +0.4% q/q expected, while Germany’s June import price index arrived at +1.0% versus +0.8% m/m expected. During the past session, the Dow Jones Industrial Average jumped 1%, the S&P 500 rose 1.2%, and the Nasdaq Composite added nearly 1.1%.
29.07.2022
1135
Weekly Review (July 18-22)
STOCKS Stock markets were mostly positive, with Wall Street indices extending a pullback from last month’s lows as investors cheered the latest round of earnings reports. Against this backdrop, market participants shrugged off some weak economic releases. Tesla railed nearly 10% after the auto maker reported stronger-than-expected earnings. The market was briefly pressured by a report on Apple planning to slow hiring and spending for some teams in 2023. Although the giant highlighted that it's not companywide and won't affect all roles, the overall sentiment turned sour on the announcement. The Dow Jones Industrial Average index rose 0.5% on Thursday, the S&P 500 gained 1.0% and the Nasdaq Composite finished 1.4% higher. Elsewhere, the Bank of Japan maintained its ultra-low rate at -0.1%, as expected. Meanwhile, US President Biden said he will be speaking with China President Xi in the next 10 days. On the positive side in Europe, Russian gas deliveries to Germany have resumed via Nord Stream AG, as expected.
22.07.2022
1201
Weekly Review (July 4-8)
STOCKS Global stocks were mostly mixed-to-positive during the week, with both upside and downside risks affecting investor sentiment. The minutes from the Fed’s June meeting showed that the central bank hinted at another 50- or 75-basis point move in July. On the data front, the ISM services PMI data came in better than expected as well as job openings. Wall Street stocks extended gains on Thursday as market players shrugged off a hawkish Fed minutes. The Dow Jones Industrial Average gained 1.12%, the S&P 500 added 1.50%, while the Nasdaq Composite rallied 2.28%. This time, energy stocks were leading the gains as oil prices rebounded partially following the recent sell-off. In Asia, Japan’s Nikkei 225 traded higher for the most part of the week to finish nearly unchanged on Friday after Japan’s former prime minister Shinzo Abe was shot and had been taken to hospital. In the UK, FTSE 100 rallied after Prime Minister Boris Johnson announced his departure from office on Thursday.
08.07.2022
1184
Weekly Review (June 27-July 1)
STOCKS Global stocks advanced at the start of the week amid widespread optimism that persisted across the board, mirroring a sharp ascent on Wall Street ahead of the weekend. However, the early optimism waned quickly Wall as investors digested disappointing economic data out of the United States. The consumer confidence index fell this month to 98.7, down from 103.2 while 12-month inflation expectations climbed to the highest level in data going back to 1987, fueling recession concerns. Adding to market worries, Fed’s Loretta Mester said the bank should act forcefully to curb price pressures. US stocks declined on the final day of the second quarter as fresh data showed that household spending growth slowed in May amid the continued price increases. The core personal consumption expenditures price index rose 4.7% in May, staying around more than 40-year highs. The Dow Jones Industrial Average shed 0.8%, the S&P 500 slid 0.9%, and the Nasdaq Composite fell 1.3% on Thursday.
01.07.2022
1112
Weekly Review (June 20-24)
STOCKS At the start of the week, investor sentiment was mixed-to-positive. On Tuesday, Wall Street indices rallied after a long weekend (US stock markets were closed Monday for Juneteenth), with three major benchmarks adding more than 2%. The next day, however, Asian stock markets fell across the board as the rally fizzled on revived inflation fears. Adding to inflation-related concerns, the UK CPI hit a new 40-year high of 9.1% year-on-year in May. Wall Street stocks gained in late trading on Thursday as the US 10-year Treasury yields continued to retreat from the recent multi-year peaks. The Dow Jones Industrial Average rose 0.64%, the S&P 500 gained 0.95%, and the Nasdaq Composite rose 1.62%. Still, investors continued to mull over the likelihood of an economic downturn, especially after fresh data showed that S&P global services PMI for the US fell sharply in June. Meanwhile, Federal Reserve Chair Powell reiterated that the central bank is “strongly committed” to bringing down inflation.
24.06.2022
1116