Weekly Review (October 4-8)
STOCKS Following a bearish start for the week amid ongoing worries about rising inflation, tightening monetary policy, and the Delta coronavirus variant, investor sentiment has improved gradually. Wall Street stocks extended the recovery on Thursday after the Senate approved legislation to temporarily raise the federal government's debt limit and thus avoid the risk of default. The government’s borrowing ability was extended into December. Also, the number of people applying for unemployment fell last week, the Labor Department reported. As such, the S&P 500 index gained 0.83%, the Dow Jones added 0.98% and the Nasdaq Composite advanced 1.05%. in Asia, the Reserve Bank of New Zealand announced a first rate rise in seven years and signaled that further removal of monetary policy stimulus is expected over time, contingent on the medium-term outlook for inflation and employment. Meanwhile, the Bank of Japan slashed its economic assessment for five of Japan’s nine regional economies in its latest quarterly report.
08.10.2021
1099
Weekly Review (September 27-October 1)
STOCKS
After a mixed start in the global markets, bearish sentiment was prevailing during the week amid the persistent fears of further waves of coronavirus outbreaks along with Evergrande’s troubles. Also, the data showed profit growth at China's industrial firms slowed for a sixth month in August. In Germany, preliminary results showed the center-left Social Democratic Party gaining the largest share of the vote. Still, coalition negotiations are likely to take weeks or even months. Meanwhile, European Central Bank chief Christine Lagarde said inflation in the Eurozone could exceed its already raised projections. In the US, the yield on the 10-year Treasury jumped to the highest level since late June, putting pressure on stocks. As such, Wall Street stocks dipped on Thursday, ending September with solid losses as investors expressed concerns over the economic outlook amid the ongoing pandemic and expectations that the Federal Reserve may start to unwind its supportive measures. As such, the S&P 500 shed 1.2%, the Dow Jones lost 1.59% and the Nasdaq Composite fell 0.44%. The S&P 500 index ended the month nearly 5% lower, the biggest monthly drop since the beginning of the pandemic.
01.10.2021
1114
Weekly Review (September 20-24)
STOCKS Following a strong sell-off in the global stock markets at the beginning of the week, risk sentiment has improved somehow on Tuesday as the Fed’s two-day policy meeting began. Most equity markets have steadied while the safe-haven dollar demand has eased. The Federal Reserve signaled it’s almost ready to taper its bond-buying program (in November) if the economy continues to make further progress. The central bank also said it might even move up its timetable for raising interest rates to 2022, the dot plot suggested. Previously the Fed had indicated the first rate hike would come until 2023. As the Fed’s policy update was broadly in line with market expectations, Wall Street stocks finished higher following the decision. On Thursday, Wall Street stocks gained as fresh economic data out of the US came in lower than expected, thus cooling investor concerns over a rapid tightening by the Federal Reserve. In particular, IHS Markit's manufacturing PMI declined to 60.5 from 61.1 versus 62.5 expected while weekly initial jobless claims in the US rose by 16,000 to 351,000 versus 320,000 expected. Against this backdrop, the S&P 500 rose 1.21%, the Dow gained 1.48%, while the Nasdaq rose 1.04%.
24.09.2021
1167
Weekly Review (September 13-17)
STOCKS Global stocks were mixed during the week, with investor sentiment improving somehow ahead of the weekend. US consumer prices in August rose 0.3% over the previous month versus 0.4% expected. However, it looks like weak figures failed to ease investor concerns about Federal Reserve policy tightening which may start before the end of the year, as stocks fell following the report. In Asia, concerns over the liquidity crisis at China's Evergrande Group affected broader sentiment. Wall Street stocks were mostly lower on Thursday as better-than-expected data out of the United States underscored the strength of the country’s economy, suggesting the Federal Reserve would start policy tightening this year. As risk sentiment deteriorated, all three major U.S. stock indexes reversed the previous session's gains. Retail sales unexpectedly jumped 0.7% on a monthly basis in August versus -0.8% expected. As such, The S&P 500 and the Dow Jones shed 0.16% and 0.18%, respectively, while the Nasdaq Composite gained 0.13%.
17.09.2021
1121
Weekly Review (September 6-10)
STOCKS
Global stocks were on the defensive for most of the week. The sentiment deteriorated further as more and more Federal Reserve officials signal tapering could get started this year even as job gains slowed last month and the impact of the recent COVID-19 resurgence. In particular, Bullard said the labor market could be “very strong” going into next year while Dallas Fed President Robert Kaplan said he supports a gradual wind down of monthly asset purchases starting in October. Meanwhile, the president of the Federal Reserve Bank of New York Williams hinted that it might be possible for the central bank to begin removing support for the economy before the end of the year. Against this backdrop, stocks turned sour across the globe. Wall Street stocks finished lower on Thursday despite fresh data showed that the number of Americans seeking unemployment benefits fell last week to 310,000. The S&P 500 fell 0.46%, its fourth straight drop, the Nasdaq pulled back 0.25%, and the Dow Jones Industrial Average fell 0.43%. Following decent losses seen earlier in the week, both Asian and European stocks turned positive on Friday as investor sentiment has improved somewhat.
10.09.2021
1130
Weekly Review (August 30 - September 3)
STOCKS
At the beginning of the week, equities were mostly higher, with market players digesting a dovish message from the Federal Reserve at the Jackson Hole symposium. Asian stocks gained despite weaker-than-expected economic data. The manufacturing PMI came at 50.1 in August as compared to 50.4 in July. In Japan, industrial output contracted in July. In the Eurozone, the IHS Markit's final manufacturing PMI fell to 61.4 in August from July's 62.8, below an initial 61.5 flash estimate. European inflation surged to a 10-year high last month. The survey by ADP showed US companies added jobs at a slower pace than expected, with private sector employment increasing by 374,000 jobs from July to August. Wall Street stocks finished higher on Thursday to notch fresh all-time highs after the data showed that initial jobless benefit claims dropped by 14,000 to 340,000 last week while the trade deficit fell 4.3% in July. Furthermore, U.S. exports reached their highest level since 2019.
03.09.2021
1190
Weekly Review (August 23-27)
STOCKS Global stocks started the week on a positive footing. European indexes gained despite IHS Markit’s flash composite PMI for the Eurozone hit a two-month low of 59.5 in August versus 60.2 in July. Wall Street stocks rallied after the FDA granted full approval for the two-dose Pfizer-BioNTech vaccine for Covid-19. After a strong start, the upside momentum began to abate as investors were getting more cautious ahead of the annual conference in Jackson Hole. On the data front, the headline German IFO business climate index worsened to 99.4 in August versus last month's 100.8 and the consensus estimates of 100.4. Meanwhile, the ECB Vice President Luis de Guindos said the central bank could again revise upwards macroeconomic projections for Eurozone in a few days. Wall Street stocks slipped on Thursday, as investors awaited Powell’s speech while new developments in Afghanistan added to the risk-off sentiment. The Pentagon confirmed 12 U.S. service members were killed and 15 wounded after two explosions went off outside the Kabul airport.
27.08.2021
1314
Weekly Review (August 16-20)
STOCKS Global stocks were mostly lower this week amid the pandemic-related worries, geopolitical tensions, and a more hawkish tone from the Fed. Asian equities were leading losses amid a combination of worries about the impact of the Afghan government’s collapse, weak Chinese economic data, and surging coronavirus infections in the region. According to fresh data, China's factory output and retail sales growth slowed sharply and missed expectations in July. Meanwhile, the Federal Reserve’s July policy meeting minutes showed plans to reduce the central bank’s monetary support late this year. On Wednesday, U.S. stocks suffered their worst single session in a month. Yesterday, the S&P 500 and the tech-heavy Nasdaq Composite gained 0.13% and 0.11% respectively, while the Dow Jones Industrial Average shed nearly 0.20%.
20.08.2021
1164
Weekly Review (August 09-13)
STOCKS
Global stocks were mixed this week, with the UD indexes outperforming other regions. On the data front, US inflation increased by 0.5% in July after a 0.9% rise in June, the largest month-to-month drop for 15 months. The annual figure remained at 5.4%, matching the steepest inflationary climb since August 2008. The figures offered some hope that the spike in inflation had peaked. This in turn could cool speculation that the U.S. Federal Reserve may tighten policy and hike interest rates sooner than expected. The S&P 500 and Dow Jones Industrial Average finished at record highs for the third day in a row on Thursday. In Asia, equities were mixed, as caution set in among investors, with in worries in the region remaining about the recent regulatory crackdown in China.
13.08.2021
1128